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Vine Hill Capital raises additional $20 Million from IPO option exercise

EditorLina Guerrero
Published 09/18/2024, 04:30 PM
VCICU
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Vine Hill Capital Investment Corp. (NASDAQ:VCICU) has announced the successful sale of an additional 2 million units at $10 each, raising $20 million in gross proceeds, as per its recent 8-K filing with the Securities and Exchange Commission (SEC). The transaction took place on Monday, September 12, 2024, following the partial exercise of the underwriter's option from its initial public offering (IPO).

The company, which operates under the "blank checks" industrial classification, initially went public on September 9, 2024, with the IPO of 20 million units and a private placement of 5.5 million private placement warrants. The additional capital from the underwriter's option brings the total amount held in trust for the benefit of the company's public shareholders and the underwriter to $221.1 million.

The underwriter, Stifel, Nicolaus & Company, Incorporated, has relinquished the remaining option to purchase up to 1 million additional units from the IPO. This closure of the underwriter's option to purchase additional units signifies the completion of the offering phase for Vine Hill Capital Investment Corp.

An unaudited pro forma balance sheet reflecting the receipt of net proceeds from the sale of the additional units was provided in the filing and is available for review. The company's headquarters are located in Fort Lauderdale, FL, and it is registered in the Cayman Islands.

The recent financial move by Vine Hill Capital Investment Corp. is expected to provide the company with additional resources to pursue its business objectives. The units sold consist of one Class A ordinary share and one-half of one redeemable warrant, each whole warrant exercisable for one Class A ordinary share at an exercise price of $11.50.

In other recent news, Vine Hill Capital Investment Corp. successfully completed its initial public offering (IPO) and private placement. The company issued 20 million units at $10 each and sold 5.5 million private placement warrants at $1 per warrant, accumulating a total of $201 million. These funds are now held in a trust account for the benefit of the company's public shareholders and the IPO's underwriter.

In addition, an extra $20 million was raised after the underwriters partially exercised their option to purchase 2 million more units, raising the trust account's total to $221.1 million. This trust account is managed by Continental Stock Transfer & Trust Company and will retain the funds until Vine Hill Capital Investment Corp. completes its initial business combination.

The company has a 21-month period from the closing of the IPO to execute a business combination. If this fails, the funds will be used to redeem the outstanding Class A ordinary shares issued during the IPO.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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