Recharge Acquisition Corp. Announces Closing of $200,000,000 Initial Public Offering

Rhea-AI Summary

Recharge Acquisition Corp. (NASDAQ: RCHGU) closed its initial public offering (IPO) on October 5, 2020, raising $200 million by offering 20 million units priced at $10 each. A 45-day over-allotment option for an additional 3 million units was granted to underwriters. The units began trading on the Nasdaq under RCHGU on October 1, 2020, and consist of one Class A common stock share and one-half redeemable warrant. $202 million has been placed in the Company’s trust account to facilitate future business combinations, primarily targeting the convenience store industry.

Positive

• Raised $200 million in IPO, providing significant capital for future acquisitions.
• Effective trading debut on Nasdaq with initial units, potentially enhancing investor interest.
• Intent to focus on the convenience store industry may attract strategic business opportunities.

Negative

• The offering involves a high level of uncertainty regarding successful future business combinations.
• The potential dilution of shares if additional units are issued to cover over-allotments.

New York, NY, Oct. 05, 2020 (GLOBE NEWSWIRE) -- Recharge Acquisition Corp. (NASDAQ: RCHGU) (the “Company”) announced today that it closed its initial public offering of 20,000,000 units. The offering was priced at $10.00 per unit, resulting in gross proceeds of $200,000,000. The Company granted the underwriters in the initial public offering, a 45-day option to purchase up to 3,000,000 additional units solely to cover over-allotments, if any.

The Company’s units are listed on the Nasdaq Capital Market (“Nasdaq”) and commenced trading under the ticker symbol “RCHGU” on October 1, 2020. Each unit consists of one share of the Company’s Class A common stock and one-half of one redeemable warrant, each whole warrant entitling the holder thereof to purchase one share of Class A common stock at a price of $11.50 per share. Only whole warrants are exercisable and will trade.  Once the securities comprising the units begin separate trading, shares of the Class A common stock and warrants are expected to be listed on Nasdaq under the symbols “RCHG” and “RCHGW,” respectively.

The Company 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. While the Company may pursue an initial business combination target in any business or industry, it intends to focus its search on companies in the convenience store industry. The Company is led by Chairman, Rajesh Soin, Chief Executive Officer, Anthony Kenney, and Chief Financial Officer, Michael Gearhardt.

Raymond James & Associates, Inc. and EarlyBirdCapital, Inc. are acting as the joint book running managers for the offering

Of the proceeds received from the consummation of the initial public offering and a simultaneous private placement of warrants, $202,000,000 (or $10.10 per unit sold in the public offering) was placed in the Company’s trust account. An audited balance sheet of the Company as of October 5, 2020 reflecting receipt of the proceeds upon consummation of the initial public offering and the private placement will be included as an exhibit to a Current Report on Form 8-K to be filed by the Company with the Securities and Exchange Commission (the “SEC”).

The offering was made only by means of a prospectus. Copies of the prospectus may be obtained from: Raymond James & Associates, Inc., 880 Carillon Parkway, St. Petersburg, Florida 33716, Attention: Equity Syndicate, 1-800-248-8863, prospectus@raymondjames.com; or from EarlyBirdCapital, Inc., 366 Madison Avenue, 8th Floor, New York, NY 10017, Attn: Syndicate Department, 212-661-0200.

A registration statement relating to these securities was declared effective by the SEC on September 30, 2020.  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.

FORWARD-LOOKING STATEMENTS

This press release contains statements that constitute “forward-looking statements,” including with respect to the initial public offering. No assurance can be given 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 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.

Contact

Anthony Kenney
Recharge Acquisition Corp.
(937) 610-4057 

FAQ

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

The IPO aims to raise capital for executing business combinations primarily in the convenience store industry.

How many units did Recharge Acquisition Corp. offer in its IPO?

The company offered 20 million units in the IPO.

What are the expected trading symbols for Recharge Acquisition Corp.'s shares and warrants?

Shares will trade under the symbol RCHG, and warrants will trade under RCHGW once separate trading begins.

What were the total proceeds from Recharge Acquisition Corp.'s IPO?

The total proceeds from the IPO amounted to $200 million.

When did Recharge Acquisition Corp. start trading on the Nasdaq?

Recharge Acquisition Corp. began trading on the Nasdaq on October 1, 2020.