TransTech Service Partners, Inc. completed its IPO on May 24 2007, selling 4,500,000 units at $8.00 per unit. The gross proceeds totaled $36 million, in line with the amount that the company was looking to raise when it filed its initial S-1 on October 19, 2006. A total of $35,530,000, equal to $7.90 per common share, has been placed into an escrow account. This balance includes $1,170,000 deferred by the underwriters, which will be paid when the company completes an acquisition, and $1,430,000 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 $1,065,000 of interest earned on the trust fund balance can be used to fund expenses related to investigating and selecting a target business and other working capital requirements.
Each unit consists of one share of common stock and a warrant to purchase one additional share at $6.00 per share.
Warrant terms: Each warrant will become exercisable on the later of the completion of a business combination with a target business and May 24, 2008. The warrants will expire at 5:00 p.m., New York City time, on May 24, 2011, or earlier upon redemption.
TransTech Service Partners, Inc. is going to “focus on identifying one or more small- to mid-market U.S. and/or European based operating companies engaged in the delivery of Information Technology and Information Technology Enabled Services (ITES), Business Process Outsourcing (BPO) and/or Knowledge Process Outsourcing (KPO) (collectively referred to by us as business services), whose operations are particularly suitable for operational and productivity improvements, which would include leveraging delivery centers located in offshore countries, such as India.”
As of the date of the offering, the underwriter had not yet exercised the over-allotment option.
The securities are listed on the OTC Bulletin Board. The units (TTSPU.OB) closed at $8.15 today. The common shares (TTSP.OB) and warrants (TTSPW.OB) are not yet trading.
The final prospectus:
sec.gov |
