Locust Walk Acquisition’s (NASDAQ: LWAC) stock has surged premarket on Wednesday after stockholders approved all proposals related to the business combination with eFFECTOR Therapeutics.
SPAC firm Locust Walk said approximately 93.2% of the votes cast at the meeting on the business combination proposal, representing about 71.7% of LWAC’s outstanding shares, voted to approve the combination.
LWAC received elections to redeem approximately 17 million of its outstanding shares, which will leave roughly $5.2 million in its trust account. Combined with the $60.7 million in expected gross proceeds from a private placement, there will be approximately $65.9 million of total cash proceeds from the transaction.
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As a result, eFFECTOR has waived the requirement that the total cash proceeds equal or exceed $100 million. In addition, there will be around $53.5 million of net cash available to the combined company from the transaction.
The deal with eFFECTOR is expected to close around August 25. Once completed, the company expects its common stock and public warrants will commence trading on Nasdaq under the new trading symbols “EFTR” and “EFTRW.”
16.98 million $LWAC shares redeemed representing 97% of shares outstanding
That is the highest redemption rate I've ever seenhttps://t.co/wKVfBr2kKi pic.twitter.com/ELnKfajBi3
— Julian Klymochko (@JulianKlymochko) August 24, 2021
LWAC shares have rocketed 478.08% premarket to $50.64.
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