SWVL, which announced plans to list on the NASDAQ in a SPAC merger with Queen’s Gambit (NASDAQ: GMBT), has increased its private investment in public equity (PIPE) proceeds to more than $120 million.
What’s a PIPE🤨 In PIPE agreements, investors commit to purchase a number of shares from a company at a specified price, with the right to resell the shares to the public. PIPEs are a quick & efficient way for companies to raise a large amount of money.
Swvl’s existing shareholders are subject to a lockup period to prevent these investors from dumping their shares into the market at once, which could significantly affect the stock’s price & negatively impact retail investors.
More Details🧐 Some $21.5 million were added to SWVL’s PIPE, thanks to investments from the European Bank for Reconstruction & Development (EBRD), & Teklas Ventures & other new investors.
Queen’s Gambit raised capital & SWVL’s PIPE proceeds combined for a total of up to $465 million in raised funds from the SPAC transaction.
Why is this Important🤔 SWVL will use the additional capital to accelerate its growth plan of expanding into 24 countries, as well as enhance the company’s balance sheet.
This move strengthens the financial position of both SWVL & Queen’s Gambit, contrary to what certain media outlets have reported: After an agreement fell through between Queen’s Gambit & Atalaya Capital Management, some media outlets falsely reported that the merger as a whole had fallen through.