Redwoods Acquisition, a blank check company targeting the carbon neutral and energy storage sectors, filed on Thursday with the SEC to raise up to $100 million in an initial public offering.
The company plans to raise $100 million by offering 10 million units at $10. Each unit consists of one share of common stock, one right to receive one-tenth of a share upon the completion of an initial business combination, and one warrant to purchase one-half of a share, exercisable at $11.50. At the proposed deal size, Redwoods Acquisition would command a market value of $130 million.
Redwoods Acquisition is led by CEO and Director Jiande Chen, the former CEO of IMAX China Holding (HKEx: 1970), and CFO and Director Edward Wang, the Managing Partner of The Balloch (Holding) Group. The company plans to target the carbon neutral and energy storage sectors, focusing on opportunities with enterprise values of approximately $250 million to $1 billion. It will not target opportunities in China.
Wang also currently serves as the CEO of Pacifico Acquisition (PAFO; +0% return from $10 offer price), which went public in September 2021 and has a pending merger with carbon-neutral ocean technology company Caravelle.
The New York, NY-based company was founded in 2021 and plans to list on the Nasdaq under the symbol RWODU. Redwoods Acquisition filed confidentially on January 31, 2022. Chardan Capital Markets is the sole bookrunner on the deal.
