Union Street Acquisition Corp. completed its IPO on February 6, 2007, selling 12,500,000 units at $8.00 per unit. The gross proceeds totaled $100 million, in line with the amount the company was looking to raise when it filed its initial S-1 on August 11, 2006. A total of $98,500,000, equal to $7.94 per common share, has been placed into an escrow account. This balance includes $3,700,000 deferred by the underwriters, which will be paid when the company completes an acquisition, and $3,000,000 from the sale of warrants to certain of the insiders. In the event that the company is liquidated, neither the underwriter nor the insiders will receive any of the funds placed into the escrow account.
Up to $1,250,000 of interest earned on the trust fund balance can be used to fund expenses related to investigating and selecting a target business and our other working capital requirements.
Each unit consists of one share of common stock and one warrant to purchase an additional share at $6.00 per share.
Union Street Acquisition Corp. is going to focus its acquisition efforts in the business services sector.
As of the date of the offering, there was no word yet as to whether or not the underwriter has exercised its over-allotment option.
The securities are listed on the American Stock Exchange. The units (USQ-U) closed at $8.25 yesterday. The common shares (USQ) and warrants (USQ-WT) closed at $7.50 and $.73, respectively.
The final prospectus:
sec.gov |
