OTR Acquisition, a blank check company formed by the co-founder of Cyrus Capital and Standard General, lowered the proposed deal size for its upcoming IPO on Monday.
The Miami, FL-based company now plans to raise $115 million by offering 11.5 million units at a price of $10. The company had previously filed to offer 25 million units at $10. At the revised deal size, OTR Acquisition will raise -54% less in proceeds than previously anticipated. Each unit will still consist of one share of common stock and one-half of a warrant, exercisable at $11.50. The SPAC now plans to over-fund its trust ($10.25 per unit).
The company is led by CEO, CFO, and Chairman Nicholas Singer, founder of family office Purchase Capital and former co-founder of Cyrus Capital Partners and Standard General. The company plans to target off-the-run private companies that have either positive operating cash flow or compelling unit economics combined with a clear path to positive operating cash flow, tangible or intangible assets with significant barriers to entry, and experienced incentivized management teams. It plans to target businesses with enterprise values of approximately $500 million to $2.5 billion.
OTR Acquisition was founded in 2020 and plans to list on the Nasdaq under the symbol OTRAU. Maxim Group LLC is the sole bookrunner on the deal.
