NEW YORK, Feb. 6 (Xinhua) -- Wealthbridge Acquisition, a blank check company (or SPAC, special purpose acquisition company) targeting air transportation industry in China, started trading on the Nasdaq Stock Market on Wednesday.
The company, trading under the ticker symbol of "HHHHU," announced its initial public offering (IPO) of 5 million units. At a price of 10 dollars per unit, the company planned to raise about 50 million dollars.
Each unit consists of one ordinary share, one warrant to purchase one-half of one share (full warrants are exercisable at 11.50 U.S. dollars), and one right to receive one-tenth of a share upon the consummation of the company's initial business combination, said the Hong Kong-based SPAC company.
The underwriters have been granted a 45-day option to purchase up to an additional 750,000 units offered by the company to cover over-allotments, if any.
SPACs are shell companies that have no operations but go public with the intention of merging with or acquiring a company with the proceeds of the SPAC's IPO.
Wealthbridge Acquisition started trading at 10.01 dollars per share on Wednesday, climbing 0.10 percent from its pricing, and closed at 10.01 dollars apiece.
"We will likely use a substantial portion of the net proceeds of this offering, including the funds held in the trust account, to acquire a target business, to pay holders who wish to convert or sell their shares to us for a portion of the funds held in the trust account and to pay our expenses relating thereto," said its prospectus.
Chardan Capital Markets acted as a lead manager on the deal.
Founded in 2018, Wealthbridge Acquisition Limited intends to acquire assets and businesses through a merger, share exchange, share purchase, recapitalization, reorganization, or business combination.
