FlatWorld Acquisition Corp. was recently organized to acquire and merge with an operating business in either the global business services sector or emerging Asian markets, including China and India. The company today announced the pricing of its initial public offering (IPO) of 2,200,000 units at a price of $10 per unit for gross proceeds of $22 million.
Each unit of the IPO consists of one ordinary share and one warrant to purchase an additional ordinary share at $11. The company’s shares commenced trading on the OTCBB today under the ticker symbol “FTWAU.”
Prior to today’s IPO, FlatWorld Acquisition received a private placement from company sponsor FWAC Holdings Limited, of 2 million insider warrants at $0.75 per warrant. The insider warrants are substantially similar to the warrants sold in the public offering.
The company said approximately $22,440,000 of the gross proceeds generated by the IPO will be deposited into a trust account maintained by Continental Stock Transfer & Trust Company, which serves as trustee.
According to the press release, none of the funds held in trust will be released from the trust account, other than for working capital purposes or to pay taxes, until the earlier of (i) the consummation by the company of a business transaction by September 9, 2012, or (ii) the company’s redemption of the public shares sold in the offering prior to any voluntary winding-up in the event the company does not consummate a business transaction within such timeframe or (iii) the company’s liquidation.
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