Recharge Acquisition Corp. announced that it closed its initial public offering (IPO) of 20,000,000 units, resulting in gross proceeds of $200 million. The company granted the underwriters in the IPO a 45-day option to purchase up to 3 million additional units solely to cover over-allotments.
Recharge Acquisition Corp. is a “blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses.”
While Recharge Acquisition Corp. may pursue an initial business combination target in any business or industry, it intends to focus its search on companies in the c-store industry. The company is led by Chairman Rajesh Soin, CEO Anthony Kenney and CFO Michael Gearhardt.
Kenney, the former president of Speedway, told the Dayton Business Journal that Acquisition Corp. has already identified 55 c-store chains that fall into the $500 million to $1 billion range.
“Our initial acquisition has to be sizable by rules of the SPAC, so we’re targeting a fairly sizable regional chain that could look like 150 stores to begin with,” said Gearhardt, former CFO of MTC Technologies, according to the Journal. “Then after that acquisition we would make other smaller acquisitions, maybe five- to 25-store chains that may be in the $20 million to $35 million range.”
Recharge Acquisition Corp.’s units are listed on the Nasdaq and commenced trading on Oct. 1.
Of the proceeds received from the consummation of the IPO and a simultaneous private placement of warrants, $202,000,000 (or $10.10 per unit sold in the public offering) was placed in the company’s trust account. An audited balance sheet of the company as of Oct. 5 reflecting receipt of the proceeds upon consummation of the initial public offering and the private placement will be included as an exhibit to a Current Report on Form 8-K to be filed by the company with the Securities and Exchange Commission (SEC).