Executive Network Partnering Corporation Files Preliminary Proxy for Special Meetings to Consider Stock Split

Rhea-AI Summary

Executive Network Partnering Corporation (ENPC) has filed a preliminary proxy statement with the SEC to hold special meetings to authorize a potential 2.5-for-1 stock split of its Class A common stock. This action aims to increase the number of shares and decrease the trading price, facilitating comparison with other special purpose acquisition companies. If approved, each Class A share and warrant will convert to 2.5 shares and warrants with an exercise price of $11.50. The special meetings are expected to occur in late March 2021.

Positive

• Potential stock split of 2.5-for-1 could enhance liquidity.
• The split may facilitate easier comparison with other special purpose acquisition companies.

Negative

• Stock split may dilute share value following the increase in outstanding shares.

Executive Network Partnering Corporation (the “Company” or “ENPC”) (NYSE: ENPC, ENPC.U, and ENPC WS) today filed a preliminary proxy statement on Schedule 14A (the preliminary proxy statement) with the U.S. Securities and Exchange Commission (SEC) to hold special meetings of stockholders and warrant holders to authorize a potential stock split (2.5 shares for every one share) of ENPC’s Class A common stock and to approve related changes to the warrant agreement (the special meetings).

If effectuated, the stock split would result in an increase in the number of shares of Class A common stock outstanding and thereby decrease the trading price of ENPC’s Class A common stock.

ENPC anticipates that the stock split and related matters, if effectuated, will allow easier comparison to the trading prices of the securities of other special purpose acquisition companies.

If both the proposed stock split and warrant amendments are effectuated, then each share of Class A common stock and warrant to purchase a share of Class A common stock will turn into 2.5 shares of Class A common stock and 2.5 warrants (with an exercise price of $11.50) respectively and each holder of a CAPS™ (the unit that currently is made up of a share of Class A common stock and 1/4 of a warrant to purchase a share of Class A common stock at $28.75) will end up with a share of Class A common stock and 1/4 of one warrant in such unit and will separately receive 1.5 shares of Class A common stock and 3/8th of a warrant. These warrants after the amendment will be warrants to purchase a share of Class A common stock at $11.50.

ENPC expects to hold the special meetings in late March 2021.

The proposed stock split amendment would adjust the terms of the Class B common stock solely to adjust for the split of the Class A common stock.

Additional Information and Where to Find it:

This communication is being made in respect of the proposed special meeting of the stockholders and warrant holders of ENPC which filed with the SEC the preliminary proxy statement, and will file other documents regarding the special meetings with the SEC. Following the filing of the preliminary proxy statement and any SEC review thereof, if any, ENPC will mail the definitive proxy statement (the definitive proxy statement) to its stockholders. Before making any voting decision regarding the matters to be presented at the special meetings, stockholders are advised to read the preliminary proxy statement and, when available, the definitive proxy statement in connection with the solicitation for proxies for the special meetings, because these statements will contain important information. The definitive proxy statement will be mailed to stockholders and warrant holders as of a record date to be established for voting on the matters to be presented at the special meetings.

Participants in the Solicitation

ENPC and its directors and its executive officers, may under the rules of the SEC, be considered participants in the solicitation of proxies with respect to the special meetings. Information about the directors and executive officers of ENPC and a description of their interests in ENPC and the matters to be presented at the special meetings are contained in the preliminary proxy statement and definitive proxy statement, each as filed with the SEC.

Caution Concerning Forward Looking Statements

This press release may contain forward-looking statements made in reliance upon the safe harbor provisions the Securities Act of 1933 and the Securities Exchange Act of 1934. Forward-looking statements include all statements that do not relate solely to historical or current facts, including without limitation the Company’s proposed special meetings, and can be identified by the use of words such as “may,” “intend,” “expect,” “project,” “estimate,” “anticipate,” “plan,” “believe,” “potential,” “should,” “continue” or the negative versions of those words or other comparable words. Forward-looking statements are not guarantees of future actions or performance and are dependent on many factors including market reaction to the proposed actions set forth above and any review by the SEC.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210226005711/en/

FAQ

What is the proposed stock split for ENPC?

The proposed stock split for Executive Network Partnering Corporation (ENPC) is a 2.5-for-1 split of its Class A common stock.

When is the special meeting for stockholders of ENPC?

The special meeting for stockholders and warrant holders of ENPC is expected to be held in late March 2021.

How will ENPC's stock split affect existing shares?

If approved, each share of Class A common stock will convert into 2.5 shares of Class A common stock.

What changes will occur to ENPC's warrants after the stock split?

Post-split, each warrant will convert into 2.5 warrants with an exercise price of $11.50.

What is the purpose of ENPC's proposed stock split?

The purpose of the proposed stock split is to allow easier comparison with the trading prices of other special purpose acquisition companies.