CF Finance Acquisition Corp. closed the issuance of an additional 2,500,000 units pursuant to the partial exercise of the underwriters' overallotment option in connection with its initial public offering.
The issuance of additional units at $10.00 per unit resulted in gross proceeds of $25 million, bringing the total gross proceeds of the IPO to $275 million. The units began trading on the Nasdaq Capital Market under the symbol CFFAU on Dec. 13.
Each unit consists of one class A common share and three-quarters of one warrant. Each whole warrant is exercisable to buy one class A common share at a price of $11.50 per share.
Only whole warrants are exercisable. Once the securities comprising the units begin separate trading, the class A common stock and warrants are expected to be listed on the Nasdaq under the symbols CFFA and CFFAW, respectively.
Of the proceeds received from the consummation of the IPO, a simultaneous private placement of units and loans by CF Finance's sponsor, $277.8 million was placed in trust.
The underwriters have until Jan. 26, 2019, to exercise the remainder of their option to buy up to an additional 1,250,000 units offered by the company to cover overallotments.
Cantor Fitzgerald & Co. is acting as the sole book running manager for the offering.