October 12, 2021
Seaport Global Acquisition Corp., the special purpose acquisition company formed to help Redbox go public, on Oct. 12 announced that it has entered into backstop subscription agreements in connection with the business combination.
As previously announced on May 17, 2021, the transaction will be funded by a combination of $145 million of cash held in the trust account of Seaport Global and a fully committed PIPE of $50 million.
The backstop agreements, which total up to $36 million, ensure that Redbox will have the capital to fund its digital transformation and expansion initiatives, according to a news release. These backstop agreements should ensure the minimum cash condition required of the business combination agreement will be met.
A special meeting of Seaport Global Acquisition stockholders will be held Oct. 20. If certain of the proposals at the Special Meeting are approved, the parties anticipate the business combination will close shortly thereafter, subject to the satisfaction or waiver (as applicable) of all other closing conditions.
Upon closing, Redbox’s common stock is expected to trade on Nasdaq under the ticker symbol RDBX.
“We appreciate the vote of confidence in Redbox’s digital future expressed by Seaport Global Acquisition and our existing investors,” said Galen Smith, CEO of Redbox. “Redbox is one of the most trusted brands in the entertainment industry, and we have a unique opportunity to extend the value we deliver to consumers as they cut the cord and search for affordable entertainment. We look forward to completing the combination and demonstrating our progress as a public company under the RDBX symbol.”