Open Acquisition Corp. is a SPAC, a special purpose acquisition company, that has filed to come public via an IPO. With $125 million proceeds targeted at $10.00 per unit, each unit will consist of one share of stock and one warrant with a $7.50 strike price. The total proposed maximum aggregate amount in securities is listed as $264,687,600.00. Deutsche Bank is listed as the lead underwriter. Once the securities begin separate trading, the common stock and warrants will be traded under the symbols “OXE” and “OXE.W” on the American Stock Exchange.
The filing does not specify a particular business focus, however, it is organized with the purpose to own no less than a controlling share in a “merger, capital stock exchange, stock or asset acquisition, or other similar business combination.” Furthermore, it does specify which businesses that it will NOT engage in: real estate brokerage, insurance brokerage and employee benefits, retail investment advisory and asset management services, quick service restaurants, nor in tobacco.
In identifying a target, the management will evaluate aspects such as the following: earnings and growth potential; experience and skill of management and availability of additional personnel; capital requirements; competitive position; financial condition and results of operation; stage of development of the products, processes or services; breadth of services offered; degree of current or potential market acceptance of the products, processes or services; regulatory environment of the industry; and costs associated with effecting the business combination.
Open Acquisition Corp. chairman is Howard M. Lorber and President/CEO is Michael S. Liebowitz. Lorber is the current President and CEO of Vector Group (NYSE: VGR), a holding company focused on tobacco and real estate businesses. He is also the chairman and CEO of fast food chain Nathan’s Famous, Inc. Liebowitz is the former president and CEO of Harbor Group, Ltd., a property and casualty brokerage firm. He is the current president and CEO of Insreview, Inc, an insurance consultant for investment banks, capital market and mezzanine lenders, and real estate opportunity funds.
Rachel Lopez
January 30, 2008
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