Redwoods Acquisition Corp. Announces Closing of $100 Million Initial Public Offering

Rhea-AI Summary

Redwoods Acquisition Corp. (RWOD) successfully closed its initial public offering on April 4, 2022, raising $100 million by selling 10 million units at $10 each. Each unit consists of one share, one warrant, and one right for future shares, and they began trading on Nasdaq under the symbol RWODU on March 31, 2022. Chardan managed the offering, which includes an option for underwriters to purchase an additional 1.5 million units. The funds will be utilized for potential mergers in carbon-neutral and energy storage sectors.

Positive

• Raised $100 million through the IPO.
• Strong focus on carbon-neutral and energy storage sectors for future business combinations.
• Potential for market expansion through strategic mergers.

Negative

• None.

NEW YORK, April 04, 2022 (GLOBE NEWSWIRE) -- Redwoods Acquisition Corp. (“RWOD”) announced today the closing of its initial public offering of 10,000,000 units. The units were sold at a price of $10.00 per unit, resulting in total gross proceeds of $100,000,000, prior to deducting underwriting discounts and commissions and other offering expenses.  Each unit consists of one share of common stock, one redeemable warrant to purchase one share of common stock at a price of $11.50 per share and one right to receive one-tenth (1/10) of one share of common stock upon the consummation of an initial business combination.

The units began trading on The Nasdaq Global Market (“Nasdaq”) under the ticker symbol “RWODU” on March 31, 2022. After the securities comprising the units begin separate trading, the shares of common stock, warrants and rights are expected to be listed on Nasdaq under the symbols “RWOD,” “RWODW” and “RWODR,” respectively.

Chardan acted as sole book-running manager of the offering. RWOD has granted the underwriters a 45-day option to purchase up to an additional 1,500,000 units at the initial public offering price to cover over-allotments, if any.

A registration statement relating to these securities was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on March 30, 2022. 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.

The offering was made only by means of a prospectus, copies of which may be obtained by contacting Chardan, 17 State Street, 21st Floor, New York, New York 10004, or by calling (646) 465-9001. Copies of the registration statement can be accessed through the SEC’s website at www.sec.gov.

About Redwoods Acquisition Corp.

RWOD is led by founder Jiande Chen (CEO). RWOD is a blank check company formed for the purpose of effecting a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization or similar business combination with one or more businesses. Although there is no restriction or limitation on what industry or geographic region its target operates in, RWOD intends to focus on the carbon neutral and energy storage industries. The proceeds of the offering will be used to fund such business combination.

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 with respect to the initial public offering, the anticipated use of the proceeds thereof, and the Company’s search for an initial business combination, are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. RWOD 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 RWOD’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

RWOD Contact:

Jiande Chen
Chief Executive Officer
Redwoods Acquisition Corp.
(646) 916-5315
jiande.chen@redwoodsac.com

FAQ

What is the total amount raised by Redwoods Acquisition Corp. in its IPO?

Redwoods Acquisition Corp. raised a total of $100 million in its initial public offering.

When did Redwoods Acquisition Corp. start trading on Nasdaq?

Redwoods Acquisition Corp. began trading on Nasdaq under the symbol RWODU on March 31, 2022.

What will the proceeds from the IPO be used for?

The proceeds from the IPO will be used to fund potential business combinations in the carbon-neutral and energy storage industries.

What are the components of each unit sold in the IPO?

Each unit consists of one share of common stock, one redeemable warrant, and one right to receive one-tenth of a share of common stock upon a business combination.