Lone Oak Acquisition Corporation (stock symbol: LOKKF) completed its initial public offering on March 12, 2011, selling 4,106,500 units, including 106,500 units from the exercise of the over-allotment option, at $8.00 per unit. The gross proceeds totaled $32,852,000, essentially in line with the $32 million that the company was looking to raise when it filed its initial F-1 registration statement on February 18, 2011. A total of $33,462,180, equal to $8.16 per common share, has been placed into an escrow account. This balance includes $2.31 million from the sale of warrants to certain of the insiders. The underwriters have not deferred any of their fees. 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.
The 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.
Units: Each unit consists of one share of common stock and one warrant. Each warrant will have the right to purchase one additional share at $5.00 per share.
Number of months to complete an acquisition: 18 months, or 24 months if the company signs a definitive agreement with a proposed acquisition candidate prior to end of the initial 18 month period.
Percentage of non-insider shares required to block an acquisition: While the company has no intention of proposing an acquisition that will require the consent of its shareholders to approve the acquisition, it will conduct a tender offer and give its shareholders an opportunity to redeem their shares. The company will not proceed with its proposed acquisition only if public shareholders owning not more than 84.7% of the shares sold in the offering exercise their redemption rights.
Warrant terms: Each warrant will become exercisable at the later of the close of a business combination or one year after the close of the initial public offering. The warrants will expire three years after the close of a business combination, or earlier upon redemption.
Acquisition focus: Lone Oak Acquisition Corporation is not going to be focusing its acquisition efforts on any particular industry or geographic area.
Securities: The securities are listed on OTC Bulletin Board. On Thursday, the common shares (LOKKF), warrants (LOKWF) and units (LOKAF) closed at $7.75, $.27 and $8.07, respectively.
The final prospectus: http://www.sec.gov/Archives/edgar/data/1506374/000114420411016253/v215037_424b3.htm |
