SPAC Harvard Ave Strikes Deal to Take Pipeline Services Firm OAG Public
HAVA is trading near its 52-week low of $9.87 (3.5% above the low) on elevated volume (14× avg).
Summary
Harvard Ave Acquisition Corp (HAVA) has entered into a definitive business combination agreement with OAG International Ltd, a global provider of specialized pipeline construction and integrity services. The combined company, OAG Pipeline Technologies Inc., is expected to list on Nasdaq. The merger consideration is $300 million, with a $30 million equity financing requirement within nine months and a $10 million minimum cash condition. This is a major development for the SPAC, which had a going concern warning and ineffective internal controls as of its Q2 10-Q. The deal provides a path to completing a business combination before its deadline. OAG brings over 25 years of operating history, 200+ projects across 27 countries, and expertise in offshore field joint coating. The transaction is subject to shareholder and regulatory approvals, and no assurances are given on timing or completion.
Updated with an SEC 8-K filing · What changed
Updates
· SEC 8-K — The 8-K discloses the $300 million merger consideration, a $30 million equity financing requirement within nine months, and a $10 million minimum cash condition.
At the time of this announcement, HAVA was trading at $10.22 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $211.5M. The 52-week trading range was $9.87 to $10.22. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: GlobeNewswire.