Flag Ship Acquisition, a blank check company targeting middle-market growth businesses, lowered the proposed deal size for its upcoming IPO on Wednesday.
The New York, NY-based company now plans to raise $60 million by offering 6 million units at $10. The company had previously filed to offer 10 million units. 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, exercisable at $11.50. At the revised terms, Flag Ship Acquisition will raise 40% less in proceeds than previously anticipated. The trust will now be overfunded at $10.15 per unit, up from $10 in the previous filing.
The company is led by CEO and Chairman Matthew Chen, the Managing Director of Darong Hechuag (Guangdong) International Investment and former Global Head of the credit derivative market making platform at JP Morgan. Chen also previously served as CEO then CFO of Longevity Acquisition, which completed its combination with 4D pharma (LBPS) in March 2021. 4D Pharma was delisted from the Nasdaq this past June. Flag Ship Acquisition has not identified a target industry but plans to focus on middle-market growth businesses with strong management teams and potential for free cash flow generation, among other characteristics.
Flag Ship Acquisition was founded in 2018 and plans to list on the Nasdaq under the symbol FSHPU. Ladenburg Thalmann is the sole bookrunner on the deal.
