FMG Acquisition Corp. completed its IPO on October 5, 2007, selling 4,733,625 units, including 233,625 units sold pursuant to the exercise of the over-allotment option, at $8.00 per unit. The gross proceeds totaled $37,809,000, in line with the amount that the company was looking to raise when it filed its initial S-1 on June 4, 2007. A total of $37,452,930, equal to $7.91 per common share, has been placed into an escrow account. This balance includes $1,514,760 deferred by the underwriters, which will be paid when the company completes an acquisition, and $1,250,000 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 $1,200,000 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 October 4, 2008. The warrants will expire at 5:00 p.m., New York City time, on October 4 2011, or earlier upon redemption.
FMG Acquisition Corp. is going to be focusing its acquisition efforts on acquiring an operating entity servicing the insurance industry.
The securities are listed on the Over the Counter Bulletin Board. The units (FMGQU.OB), common shares (FMGQ.OB) and warrants (FMGQU.OB) closed Friday at $7.96, $7.20, and $.70, respectively.
The final prospectus: sec.gov |
