Fundamental Global Inc. Merchant Banking Client Aldel Financial II Inc. Announces Closing of $230 Million Initial Public Offering

Rhea-AI Summary

Fundamental Global Inc. (Nasdaq: FGF) announces that its merchant banking client, Aldel Financial II, has completed a $230 million initial public offering. Aldel Financial II is a special purpose acquisition company led by Robert Kauffman, former co-founder of Fortress Investment Group. Following the IPO, Fundamental Global's holding position includes 203,571 Class B Ordinary Shares, 28,170 Private Units (comprising 28,170 Class A common shares and 14,085 $11.50 5-year warrants), and 33,044 $15.00 10-year warrants.

Positive

• Successful completion of $230 million IPO by portfolio company
• Strategic investment position secured through various share classes and warrants
• Association with experienced leadership (former Fortress Investment Group co-founder)

Negative

• None.

Insights

Financial Analyst

A significant development for FGF as its merchant banking client Aldel Financial II successfully raised $230 million through an IPO. The company's stake in Aldel Financial II includes 203,571 Class B shares, 28,170 Private Units (with Class A shares and warrants) and 33,044 long-term warrants. This SPAC structure, led by former Fortress Investment Group co-founder Robert Kauffman, represents a strategic position for FGF in the SPAC market. The dual-class share structure and warrant components provide FGF with significant upside potential if Aldel Financial II successfully identifies and completes a business combination. The $15.00 warrants with a 10-year term indicate long-term growth expectations, while the $11.50 5-year warrants offer medium-term leverage. For a company with an $18.8 million market cap, this position could be transformative depending on Aldel's future acquisition target.

Mooresville, NC, Nov. 05, 2024 (GLOBE NEWSWIRE) -- Fundamental Global Inc. (Nasdaq: FGF, FGFPP) (“Fundamental Global” or the “Company”) is pleased to announce that Aldel Financial II Inc. (Aldel Financial II”), one of the Company’s merchant banking holdings, has successfully completed a $230 million initial public offering.

Aldel Financial II is a newly organized special purpose acquisition company led by Chairman and CEO Robert Kauffman, former co-founder of Fortress Investment Group, LLC. Aldel Financial II intends to use the net proceeds to consummate its initial business combination.

Following Aldel Financial II’s IPO, the Company’s holding position includes:

• 203,571 Aldel Financial II Class B Ordinary Shares
• 28,170 Aldel Financial II Private Units, consisting of:
  • 28,170 Class A common shares and
  • 14,085 $11.50 5-year warrants
• 33,044 Aldel Financial II $15.00 10-year warrants
  

About Fundamental Global Inc.

Fundamental Global Inc. (Nasdaq: FGF, FGFPP) and its subsidiaries engage in diverse business activities including reinsurance, asset management, merchant banking, and managed services.

The FG^® logo and Fundamental Global^® are registered trademarks of Fundamental Global LLC.

Forward-Looking Statements

In addition to the historical information included herein, this press release contains “forward-looking statements” that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this press release may be identified by the use of words such as “anticipate,” “believe,” “contemplate,” “could,” “estimate,” “expect,” “intend,” “seek,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “target,” “aim,” “should,” “will” “would,” or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements are based on the Company’s current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. These and other risks and uncertainties are described more fully in the section titled “Risk Factors” in the final prospectus related to the public offering filed with the SEC, our Annual Report on Form 10-K for the year ended December 31, 2023, and the Company’s other reports filed with the SEC. Forward-looking statements contained in this announcement are made as of this date, and the Company undertakes no duty to update such information except as required under applicable law.        

Investor Relations Contacts:
investors@fundamentalglobal.com

FAQ

How much did Aldel Financial II raise in its IPO as announced by FGF?

Aldel Financial II raised $230 million in its initial public offering.

What is Fundamental Global's (FGF) holding position in Aldel Financial II after the IPO?

FGF holds 203,571 Class B Ordinary Shares, 28,170 Private Units (including 28,170 Class A shares and 14,085 $11.50 5-year warrants), and 33,044 $15.00 10-year warrants.

Who is leading Aldel Financial II as announced in FGF's press release?

Robert Kauffman, former co-founder of Fortress Investment Group, , is leading Aldel Financial II as Chairman and CEO.