Lerer Hippeau Acquisition Corp. Prices $200 Million Initial Public Offering

Rhea-AI Summary

Lerer Hippeau Acquisition Corp. has priced its initial public offering (IPO) at $10.00 per share, aiming to raise gross proceeds of $200 million through the offering of 20 million shares. The underwriters have a 45-day option for an additional 3 million shares. The shares will trade under the symbol 'LHAA' starting March 5, 2021, with the offering expected to close on March 9, 2021. The company is a blank check firm formed for mergers or acquisitions and is sponsored by Lerer Hippeau, a venture capital firm with over 400 companies in its portfolio.

Positive

• Successful pricing of IPO at $10.00 per share, raising $200 million.
• Underwriters' option for 3 million additional shares may enhance capital.
• Strategic formation as a blank check company facilitating future acquisitions.

Negative

• No guarantees that the IPO will close as planned on March 9, 2021.
• Forward-looking statements indicate potential risk and uncertainty in capital use.

Lerer Hippeau Acquisition Corp. (the “Company”) announced today that it priced its initial public offering of 20,000,000 shares of its Class A common stock, $0.0001 par value per share, at $10.00 per share, for gross proceeds of $200,000,000. The Company has granted the underwriters a 45-day option to purchase up to 3,000,000 additional shares of Class A common stock to cover over-allotments, if any. The shares will be listed on the Nasdaq Capital Market and trade under the ticker symbol “LHAA” beginning March 5, 2021. The offering is expected to close on March 9, 2021, subject to customary closing conditions.

Lerer Hippeau Acquisition Corp. is a blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses or entities. The Company is led by Kenneth Lerer, its Chairman, Eric Hippeau, its Chief Executive Officer and Director, and Ben Lerer, its President and Director.

The Company is sponsored by an affiliate of Lerer Hippeau, one of the most active venture capital firms in the country with a portfolio of over 400 companies across the consumer and enterprise technology sectors.

Barclays Capital Inc., Code Advisors LLC and Drexel Hamilton LLC are serving as underwriters for the offering, with Barclays Capital Inc. serving as the sole bookrunning manager.

A registration statement relating to these securities was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on March 4, 2021. The offering is being made only by means of a prospectus. When available, copies of the final prospectus may be obtained for free on the SEC’s website located at www.sec.gov and may also be obtained by contacting Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by email at Barclaysprospectus@broadridge.com or by telephone at (888) 603-5847.

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 offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Cautionary Note Concerning Forward-Looking Statements

This press release contains statements that constitute “forward-looking statements,” including with respect to the completion of the initial public offering and the anticipated use of the net proceeds. No assurance can be given that the offering discussed above 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 Company’s 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/20210305005322/en/

FAQ

What is the purpose of Lerer Hippeau Acquisition Corp.'s IPO?

The IPO aims to raise capital for potential mergers or acquisitions.

When will shares of LHAA begin trading?

Shares will start trading on March 5, 2021.

What are the financial details of the IPO for LHAA?

Lerer Hippeau Acquisition Corp. is offering 20 million shares at $10.00 each, totaling $200 million.

What risks are associated with the LHAA IPO?

Forward-looking statements indicate risks regarding the completion of the IPO and use of proceeds.

Who are the underwriters for the LHAA IPO?

Barclays Capital Inc., Code Advisors LLC, and Drexel Hamilton LLC are the underwriters, with Barclays as the bookrunning manager.