Perception Capital Corp. IV, a company involved in the gold and silver ores industry, has entered into significant agreements that will alter its equity structure, according to a recent 8-K filing with the Securities and Exchange Commission.
On Monday, the Minneapolis-based company, which trades under the ticker NYSE:RCFA, announced the execution of a Warrant Exchange Agreement with its managing sponsor, Perception Capital Partners IV LLC. Under this agreement, the managing sponsor will exchange approximately 9.07 million private placement warrants for around 755,625 Class A ordinary shares. These shares will not entitle holders to funds from the company's Trust Account or the right to vote on business combination resolutions.
Additionally, Perception Capital Corp. IV has agreed to sell over 609,000 preference shares to BCMP Services Limited for a total of $700,000. This sale is structured in two tranches, the first of which closed on Sunday, resulting in the issuance of 435,179 preference shares for $500,000.
These preference shares will convert into Class A ordinary shares 61 days after the company completes its initial business combination. The preference shares will carry the same rights as the Class A ordinary shares, except for the entitlement to Trust Account assets or voting rights on business combinations.
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