Callodine Acquisition Corporation Announces Launch of $250 Million Initial Public Offering

Rhea-AI Summary

Callodine Acquisition Corporation has initiated its initial public offering (IPO), offering 25 million units at $10.00 each. Each unit consists of one share of Class A common stock and one-third of a redeemable warrant, allowing purchase of additional shares at $11.50 per share. The units will be traded under the symbol 'CALQU' on Nasdaq, with separate trading for stock and warrants expected under 'CALQ' and 'CALQW'. Wells Fargo Securities is the sole book runner, with an option for underwriters to purchase an additional 3.75 million units.

Positive

• Initial public offering of 25 million units provides capital for future business activities.
• Potential for additional proceeds through underwriter's option for 3.75 million more units.
• Strategic listing on Nasdaq enhances visibility and accessibility to investors.

Negative

• The registration statement is not yet effective, delaying potential capital fundraising.
• No guarantees that the IPO will be completed on described terms or at all.

Callodine Acquisition Corporation (the “Company”) announced today that it has commenced its initial public offering of 25,000,000 units at a price to the public of $10.00 per unit. Each unit issued in the offering consists of one share of the Company’s Class A common stock and one-third of one redeemable warrant, each whole warrant entitling the holder thereof to purchase one share of Class A common stock at an exercise price of $11.50 per share, subject to certain adjustments. The units are expected to be listed on The Nasdaq Stock Market LLC (“Nasdaq”) and trade under the ticker symbol “CALQU”. After the securities comprising the units begin separate trading, the shares of Class A common stock and warrants are expected to be listed on Nasdaq under the symbols “CALQ” and “CALQW,” respectively. No fractional warrants will be issued upon separation of the units and only whole warrants will trade.

Wells Fargo Securities is serving as sole book runner in the offering. Aviditi Advisors is serving as financial advisor to the Company. The Company intends to grant the underwriters a 45-day option to purchase up to an additional 3,750,000 units at the initial public offering price to cover over-allotments, if any.

The initial public offering is being made only by means of a prospectus. Copies of the prospectus may be obtained, when available, from Wells Fargo Securities, Attention: Equity Syndicate Department, 500 West 33rd Street, New York, New York, 10001, at (800) 326-5897 or by emailing a request to cmclientsupport@wellsfargo.com.

A registration statement relating to these securities has been filed with the Securities and Exchange Commission (“SEC”) but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Callodine Acquisition Corporation

Callodine Acquisition Corporation, led by James Morrow, who is also the founder and CEO of Callodine Group, LLC, is a blank check company formed for the purpose of entering into a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses in the alternative asset management industry.

Forward-looking statements

This press release contains statements that constitute “forward-looking statements,” including with respect to the Company’s initial public offering and the anticipated use of the net proceeds thereof. No assurance can be given that the offering will be completed on the terms described, or at all, or that the net proceeds of the offering will be used as indicated. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including those set forth in the Risk Factors section of the Company’s registration statement and preliminary prospectus for the offering filed with the SEC. Copies are available on the SEC’s website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210322005390/en/

FAQ

What is the purpose of Callodine Acquisition Corporation's IPO?

The IPO aims to raise capital for potential mergers or acquisitions in the alternative asset management industry.

When will Callodine's units start trading on Nasdaq?

The units are expected to begin trading on Nasdaq under the ticker symbol 'CALQU' upon completion of the IPO.

What are the terms of the warrants included in Callodine's offering?

Each unit includes one-third of a warrant, with each full warrant allowing the purchase of one share at an exercise price of $11.50.

Who is the book runner for Callodine's IPO?

Wells Fargo Securities is serving as the sole book runner for the IPO.

How many additional units can underwriters purchase after Callodine's IPO?

Underwriters have a 45-day option to purchase up to an additional 3.75 million units.