COVA Acquisition Corp. Announces Closing of $300 Million Initial Public Offering

Rhea-AI Summary

COVA Acquisition Corp. (Nasdaq: COVAU) completed its initial public offering, raising $300 million by selling 30 million units at $10.00 each, which included an additional 3.9 million units from the underwriter's over-allotment option. The units began trading on Nasdaq on February 5, 2021. Each unit includes one Class A ordinary share and a half warrant for purchasing ordinary shares at $11.50. The firm aims to target high-growth tech businesses in Southeast Asia but may consider various sectors.

Positive

• Raised $300 million in IPO, enhancing financial resources for potential acquisitions.
• Focus on high-growth technology and tech-enabled businesses in Southeast Asia may lead to lucrative opportunities.

Negative

• The reliance on forward-looking statements poses risks, with potential for actual results to differ significantly from expectations.

COVA Acquisition Corp. (Nasdaq: COVAU) (the “Company”) announced today the closing of its initial public offering of 30,000,000 units at a price of $10.00 per unit, including an additional 3,900,000 units sold pursuant to an exercise of the underwriter’s over-allotment option. Total gross proceeds from the offering were $300 million before deducting underwriting discounts and commissions and other offering expenses payable by the Company.

The units began trading on The Nasdaq Capital Market (the “Nasdaq”) under the ticker symbol “COVAU” on February 5, 2021. Each unit consists of one Class A ordinary share of the Company and one-half of one redeemable warrant. Each whole warrant entitles the holder thereof to purchase one Class A ordinary share of the Company at a price of $11.50 per share. Once the securities comprising the units begin separate trading, the Class A ordinary shares and warrants are expected to be listed on the Nasdaq under the symbols “COVA” and “COVAW,” respectively.

The Company was formed by Crescent Cove Advisors LP (“Crescent Cove”) for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. The Company intends to focus its search for a target in the high growth technology and tech-enabled businesses in Southeast Asia in the consumer internet, ecommerce, and software industries, but may pursue a target in any stage of its corporate evolution or in any industry, sector or geographic location. Based in San Francisco, Crescent Cove is a leading credit-focused investment firm that has built an exceptional track record investing in high growth ventures within the technology, media and telecommunications (“TMT”) middle-market, differentiated by its speed and flexibility in solving complex financing needs for tech entrepreneurs.

Cantor Fitzgerald & Co. acted as sole book-running manager for the offering.

Cautionary Note Concerning Forward Looking Statements

This press release includes forward-looking statements that involve risks and uncertainties. Forward looking statements are statements that are not historical facts. Such forward-looking statements, including potential targets for a business combination, are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210209006063/en/

FAQ

What was the total amount raised by COVA Acquisition Corp. in its IPO?

COVA Acquisition Corp. raised a total of $300 million in its IPO.

When did COVA Acquisition Corp. start trading on Nasdaq?

COVA Acquisition Corp. began trading on Nasdaq on February 5, 2021.

What does each unit consist of in COVA Acquisition Corp.'s IPO?

Each unit consists of one Class A ordinary share and one-half of one redeemable warrant.

What is the intended focus of COVA Acquisition Corp. for future business combinations?

COVA Acquisition Corp. intends to focus on high-growth technology and tech-enabled businesses in Southeast Asia.