DD3 Acquisition Corp. is a blank check company incorporated under the laws of the British Virgin Islands on July 23, 2018 and listed on the NASDAQ Stock Market as a SPAC, for the purpose of raising capital to enter into a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization or other similar business combination with one or more businesses or entities. Although, its efforts to identify a prospective target business are not limited to a particular industry or geographic region, it intends to focus its search for target businesses in Mexico or Hispanic-american business in the United States, but not limited to other geographic areas.
A Company founded in 2016, headquartered in Mexico City, which distinguishes itself by providing holistic investment advice, access to exclusive investment opportunities, and creating bold innovative solutions for every client with tailored services aligned to long-term goals.
Among its offered products we find Strategic Advisory and Capital Market services covering a wide range of sectors for corporate, mid-market and financial sponsor clients. Also, DD3 is recognized as the leader in crafting tailored financing solutions for residential developers. Its primary investing activities include:
- • Mezzanine Loans
- • Preferred Equity
- • Senior Loans
- • Special Situations
To the date, DD3 Capital Partners working team is composed of 14 professionals, and its portfolio is comprised by three investment funds focused on real estate. DD3 has become one of the companies dedicated to asset management and finance consulting with the highest growth rate in Mexico.
For more information, please visit DD3 Capital Partners corporate website.
A blank-check company is a company at a development stage that either does not have an established business plan, its business plan is based around pursuing any type of business combination with another company or companies without having a specific target, sometimes even the line of business of such companies has not necessarily been decided.
A special purpose acquisition company (SPAC) is a publicly traded company whose purpose is to raise capital through an IPO, which will be used afterwards to acquire an existing company (or companies).
DD3 Acquisition Corp. stock is traded since October 16, 2018, on the Nasdaq Capital Market. At the IPO’s date and during the following days, the Company’s stock was only traded through “Units” under the symbol “DDMXU”, comprised of an ordinary share and a warrant (which allows is holder the right to acquire another ordinary share). Finally, since October 23, 2018, both ordinary shares and warrants (as well as the units), trade separately on the Nasdaq under the symbols “DDMX” and “DDMXW”, respectively.
The stablished period to carry out any business combination as stated on the Company’s final prospectus is 18 months. Therefore, the Management has until April 16, 2020 to conclude any transaction, otherwise, the SPAC will be automatically dissolved, and the money held in trust will be returned to investors.
- Financial and Audit Committee
- Nominating Committee
- Compensation Committee
Among the investment fundamentals we can find:
- Its Management Team’s extensive relationships and excellent reputation throughout the Mexican and Latin American markets will enable it to identify business combination opportunities with significant potential upside.
- Its Management Team’s 40 years of combined operating and financial experience in a wide variety of industries, including retail and consumer, financial services, energy, real estate, infrastructure and leisure, when paired with its ability to consistently perform under varying economic environments in emerging markets, will be a differentiating factor that is highly attractive to potential target companies.
- The DD3 Capital Partners current partnerships will enhance its capabilities beyond the management team to source and fulfill business combination opportunities.
- Its structure as a public-traded Company, which offers target business a more direct and cheaper alternative when compared to an IPO will make it an attractive business combination partner.
- • Its solid balance sheet.
In line with its business strategy, the Company has identified a criteria and general guidelines which acts as a key aspect when assessing possible target businesses. Although, is worth noting that Consistent with its business strategy, the Company has identified the following general criteria and guidelines that it believes are important when evaluating prospective target businesses. Although, it is important noting that the Company may decide to enter nto an initial business combination with a target business that does not meet one or all of the following guidelines:
- Are fundamentally sound but that under the Company’s criteria may achieve better results by leveraging the operating and financial experience of its management team.
- Are able to innovate through new operational techniques, or where the Company may drive an improved financial performance.
- Are established companies with proven business models, strong operations and fundamentals for revenue and earnings growth.
- Generate solid free cash flows or have the potential to generate strong, stable and increasing free cash flows.
- Have leading, growing or strong industry positioning, or are well positioned to participate as a consolidator in its sector.
- Have an experienced management team that can implement growth initiatives with a primary capital injection.
- Offer attractive risk-adjusted returns.
To the date, the Company has not paid any cash dividends and do not intends to pay cash dividends prior to the completion of an initial business combination. The payment of cash dividends in the future will be dependent upon its revenues and earnings, if any, along with the capital requirements and general financial condition subsequent to completion of a business combination. Also, the payment of any dividends will be within the discretion of its board of directors.