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.
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
— Julian Klymochko (@JulianKlymochko) August 24, 2021
LWAC shares have rocketed 478.08% premarket to $50.64.
One of the most frequently asked questions we receive is, “what stocks are best to buy right now?” It's a wide-ranging question, but one that we have answered… Our AskTraders stock analysts regularly review the market and compile a list of which companies you should be adding to your portfolio, including short and longer-term positions. Here are the best stocks to buy right now
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 68 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .
The AskTraders Analyst Team features experts in technical and fundamental analysis, as well as traders specializing in stocks, forex, and cryptocurrency.