0001437749-19-014746.txt : 20190729 0001437749-19-014746.hdr.sgml : 20190729 20190726181112 ACCESSION NUMBER: 0001437749-19-014746 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 39 CONFORMED PERIOD OF REPORT: 20190630 FILED AS OF DATE: 20190729 DATE AS OF CHANGE: 20190726 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Pure Acquisition Corp. CENTRAL INDEX KEY: 0001726293 STANDARD INDUSTRIAL CLASSIFICATION: BLANK CHECKS [6770] IRS NUMBER: 823434680 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-38454 FILM NUMBER: 19978922 BUSINESS ADDRESS: STREET 1: 421 3RD STREET STREET 2: SUITE 1000 CITY: FORT WORTH STATE: TX ZIP: 76102 BUSINESS PHONE: 8178509200 MAIL ADDRESS: STREET 1: 421 3RD STREET STREET 2: SUITE 1000 CITY: FORT WORTH STATE: TX ZIP: 76102 10-Q 1 pacq20190630_10q.htm FORM 10-Q pacq20190630_10q.htm
 

 



 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549 

 


FORM 10-Q

 


(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2019

OR 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from                     to          

Commission file number 001-38454  

 


Pure Acquisition Corp.

(Exact Name of Registrant as Specified in its Charter)

 


 Delaware

 

82-3434680

(State or Other Jurisdiction of
Incorporation or Organization)

 

(I.R.S. Employer
Identification Number)

 

 

 

421 W. 3rd Street, Suite 1000
Fort Worth, TX

 

76102

(Address of Principal Executive Offices)

 

(Zip Code)

 

(817) 850-9203

(Registrant’s Telephone Number, Including Area Code) 

 


Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Class A Common Stock, par value $0.0001 per share

PACQ

NASDAQ

Warrants, each Warrant exercisable for one share of Class A Common Stock at an exercise price of $11.50 PACQW NASDAQ
Units, each consisting of one share of Class A Common Stock and one-half of one Warrant PACQU NASDAQ

 

Indicate by check mark whether the registrant:  (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes ☒  No ☐ 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes ☒  No ☐ 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.  (Check one): 

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

 

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes ☒  No ☐

 

As of July 26, 2019, there were 41,400,000 shares of Class A Common Stock, par value $0.0001 per share, and 10,350,000 shares of Class B Common Stock, par value $0.0001 per share, outstanding.

 

 

 

 

 

TABLE OF CONTENTS

 

 

Page

Part I. Financial Information

3

 

 

Item 1. Financial Statements

3

 

 

Condensed Balance Sheets

3

 

 

Condensed Statements of Operations (unaudited)

4

 

 

Condensed Statements of Changes in Stockholders’ Equity (unaudited)

5

 

 

Condensed Statements of Cash Flows (unaudited)

6

 

 

Notes to Condensed Financial Statements (unaudited)

7

 

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

16

 

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

18

 

 

Item 4. Controls and Procedures

18

 

 

Part II. Other Information

19

 

 

Item 1. Legal Proceedings

19

 

 

Item 1A. Risk Factors

19

 

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

19

 

 

Item 3. Defaults Upon Senior Securities

19

 

 

Item 4. Mine Safety Disclosures

20

 

 

Item 5. Other Information

20

 

 

Item 6. Exhibits

20

 

2

 

 

PART I - FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

Pure Acquisition Corp.

Condensed Balance Sheets

 

   

June 30, 2019

   

December 31, 2018

 
   

(Unaudited)

   

(Audited)

 

ASSETS

               

Current assets:

               

Cash

  $ 578,974     $ 734,894  

Prepaid expenses

    -       3,023  

Total current assets

    578,974       737,917  

Other assets:

               

Cash and marketable securities held in Trust Account

    422,347,275       418,727,517  

Total other assets

    422,347,275       418,727,517  

TOTAL ASSETS

  $ 422,926,249     $ 419,465,434  
                 

LIABILITIES AND STOCKHOLDERS' EQUITY

               

Current liabilities:

               

Accounts payable and accrued expenses

  $ 45,113     $ 39,867  

Accrued taxes payable

    114,387       357,759  

Total current liabilities

    159,500       397,626  
                 

Class A common stock subject to possible redemption; 41,400,000 at redemption value of $10 per share

    414,000,000       414,000,000  
                 

Stockholders' equity:

               

Preferred stock, $0.0001 par value; 1,000,000 shares authorized, none issued and outstanding

           

Class A common stock, $0.0001 par value; 200,000,000 shares authorized, -0- issued and outstanding (excluding 41,400,000 shares subject to possible redemption) as of June 30, 2019 and December 31, 2018, respectively

           

Class B common stock, $0.0001 par value; 15,000,000 shares authorized, 10,350,000 issued and outstanding as of June 30, 2019 and December 31, 2018

    1,035       1,035  

Additional paid-in capital

    797,383       797,383  

Retained earnings

    7,968,331       4,269,390  

Total stockholders' equity

    8,766,749       5,067,808  

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

  $ 422,926,249     $ 419,465,434  

 

 

The accompanying notes are an integral part of these unaudited condensed financial statements

 

3

 

 

 

Pure Acquisition Corp.

Condensed Statements of Operations

(Unaudited)

 

 

   

Three Months Ended
June 30,

   

Six Months Ended
June 30,

 
   

2019

   

2018

   

2019

   

2018

 
                                 

Revenues

  $ -     $ -     $ -     $ -  
                                 

Expenses:

                               

Administrative expenses

    30,000       26,000       60,000       26,000  

General expenses

    42,926       36,311       144,089       36,761  

Franchise taxes

    28,959       71,000       86,927       71,000  

Total operating expense

    101,885       133,311       291,016       133,761  

Loss from operations

    (101,885 )     (133,311 )     (291,016 )     (133,761 )

Other income - investment income on Trust Account

    2,592,502       1,484,040       5,027,471       1,484,040  

Net income (loss) before income tax provision

    2,490,617       1,350,729       4,736,455       1,350,279  

Income tax provision

    536,681       284,000       1,037,514       284,000  

Net income (loss) attributable to common shares

  $ 1,953,936     $ 1,066,729     $ 3,698,941     $ 1,066,279  

Weighted average shares outstanding:

                               

Class A common stock

    41,400,000       41,400,000       41,400,000       41,400,000  

Class B common stock

    10,350,000       10,350,000       10,350,000       10,350,000  

Net income (loss) per share:

                               

Basic and diluted income per common share, Class A

  $ 0.05     $ 0.03     $ 0.09     $ 0.03  

Basic and diluted loss per common share, Class B

  $ (0.00 )   $ (0.00 )   $ (0.01 )   $ (0.00 )

 

 

  The accompanying notes are an integral part of these unaudited condensed financial statements

 

4

 

 

 

Pure Acquisition Corp.

Condensed Statements of Changes in Stockholders’ Equity

(Unaudited)

 

   

Six Month Period Ended June 30, 2019

 
                                   

Additional

                 
   

Class A Common Stock

   

Class B Common Stock

   

Paid-in

   

Retained

   

Stockholders'

 
   

Shares

   

Amount

   

Shares

   

Amount

   

Capital

   

Earnings

   

Equity

 
                                                         

Balances, December 31, 2018

    -     $ -       10,350,000     $ 1,035     $ 797,383     $ 4,269,390     $ 5,067,808  

Net income

    -       -       -       -       -       1,745,005       1,745,005  

Balances, March 31, 2019

    -       -       10,350,000       1,035       797,383       6,014,395       6,812,813  

Net income

    -       -       -       -       -       1,953,936       1,953,936  

Balances, June 30, 2019

    -     $ -       10,350,000     $ 1,035     $ 797,383     $ 7,968,331     $ 8,766,749  

 

   

Six Month Period Ended June 30, 2018

 
                                   

Additional

                 
   

Class A Common Stock

   

Class B Common Stock

   

Paid-in

   

Accumulated

   

Stockholders'

 
   

Shares

   

Amount

   

Shares

   

Amount

   

Capital

   

Deficit

   

Equity

 
                                                         

Balances, December 31, 2017

    -     $ -       10,350,000     $ 1,035     $ 23,965     $ (5,881 )   $ 19,119  

Net loss

    -       -       -       -       -       (450 )     (450 )

Balances, March 31, 2018

    -       -       10,350,000       1,035       23,965       (6,331 )     18,669  

Sale of Class A common stock to public

    41,400,000       4,140       -       -       413,995,860       -       414,000,000  

Underwriting commissions and offering expenses

    -       -       -       -       (9,506,582 )     -       (9,506,582 )

Sale of 10,280,000 Private Placement Warrants @ $1 per warrant

    -       -       -       -       10,280,000       -       10,280,000  

Shares subject to possible redemption

    (41,085,881 )     (4,109 )     -       -       (410,854,701 )     -       (410,858,810 )

Net loss

    -       -       -       -       -       1,066,729       1,066,729  

Balances, June 30, 2018

    314,119     $ 31       10,350,000     $ 1,035     $ 3,938,542     $ 1,060,398     $ 5,000,006  

 

 

The accompanying notes are an integral part of these unaudited condensed financial statements

 

5

 

 

Pure Acquisition Corp.

 

Condensed Statements of Cash Flows

 (Unaudited)

 

 

   

Six Months Ended June 30,

 
   

2019

   

2018

 

CASH FLOWS FROM OPERATING ACTIVITIES:

               

Net income (loss)

  $ 3,698,941     $ 1,066,279  

Adjustments to reconcile net income to net cash used in operating activities:

               

Investment income earned on cash equivalents held in Trust Account

    (5,027,471 )     (1,484,040 )

Changes in operating assets and liabilities:

               

Prepaid expenses

    3,023       (15,164 )

Accrued expenses

    5,246       39,682  

Accrued taxes

    (243,371 )     355,000  

Net cash used in operating activities

    (1,563,632 )     (38,243 )
                 

CASH FLOWS FROM INVESTING ACTIVITIES

               

Investment of cash in Trust Account

    -       (414,000,000 )

Cash released from Trust Account

    1,407,712       -  

Net cash provided by (used in) investing activities

    1,407,712       (414,000,000 )
                 

CASH FLOWS FROM FINANCING ACTIVITIES:

               

Proceeds from public offering of Units

            414,000,000  

Proceeds from sale of Private Placement Warrants

            10,280,000  

Proceeds from promissory note from sponsor

            200,000  

Payment of promissory note from sponsor

            (200,000 )

Payment of underwriting commissions

            (8,280,000 )

Payment of offering costs (excluding related parties)

            (1,192,422 )

Payment to related party for offering costs paid on behalf of the Company

    -       (34,160 )

Net cash provided by financing activities

    -       414,773,418  
                 

NET CHANGE IN CASH

    (155,920 )     735,175  

Cash, beginning of period

    734,894       25,000  

Cash, end of period

  $ 578,974     $ 760,175  
                 

Supplemental disclosure of investing activities:

               

Cash paid for franchise taxes

  $ 202,712     $ -  

Cash paid for income taxes

  $ 1,165,000     $ -  
                 

Supplemental disclosure of financing activities:

               

Common stock subject to redemption

  $ -     $ 410,858,810  

 

 

The accompanying notes are an integral part of these unaudited condensed financial statements

 

6

 

 

PURE ACQUISITION CORP.

 

Notes to Condensed Financial Statements

June 30, 2019

(Unaudited)  

 

 

Note 1 - Description of Organization and Business Operations

 

Pure Acquisition Corp. (the "Company'', "we", "us" or "our") was incorporated in Delaware on November 13, 2017 as a blank check company for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, recapitalization, reorganization or other similar business combination with one or more businesses or entities (a "Business Combination"). We intend to focus our search for target businesses in the energy industry with an emphasis on opportunities in the upstream oil and gas industry in North America.

 

At June 30, 2019, the Company had not yet commenced operations. All activity from November 13, 2017 (inception) through June 30, 2019 relates to the Company's formation and the public offering described below. The Company will not generate any operating revenues until after completion of its Business Combination, at the earliest. The Company will generate non-operating income in the form of interest income on cash and cash equivalents from the proceeds derived from the public offering. The Company has selected December 31 as its fiscal year-end. The Company is an early stage and emerging growth company and, as such, the Company is subject to all of the risks associated with early stage and emerging growth companies.

 

On April 17, 2018 (the “IPO Closing Date”), the Company consummated its initial public offering (“Public Offering”) of 41,400,000 units, representing a complete exercise of the over-allotment option, at a purchase price of $10.00 per unit as discussed in Note 3. Each unit consists of one share of Class A common stock and one half of one warrant (a "Unit"). Each whole warrant entitles the holder to purchase one share of Class A common stock at a price of $11.50. Each warrant will become exercisable on the later of 30 days after the completion of an initial Business Combination or 12 months from the April 17, 2018 close of the Company’s offering and will expire on the fifth anniversary of our completion of an initial Business Combination, or earlier upon redemption or liquidation.

 

On April 17, 2018, HighPeak Pure Acquisition, LLC ("HighPeak" and the "Sponsor") purchased from us an aggregate of 10,280,000 private placement warrants at $1.00 per private placement warrant (for a total purchase price of $10,280,000) in a private placement that occurred simultaneously with the consummation of the Public Offering.

 

The Company intends to finance its initial Business Combination with proceeds from the Public Offering and the $10,280,000 private placement (Note 3). Upon the closing of the Public Offering and the private placement, $414,000,000 was placed in a trust account (“Trust Account”). The proceeds held in the Trust Account will be invested only in U.S. government treasury bills with a maturity of one hundred eighty (180) days or less or in money market funds that meet certain conditions under Rule 2a-7 under the Investment Act of 1940 and invest only in direct U.S. government obligations.

 

The Company's management has broad discretion with respect to the specific application of the net proceeds of the Public Offering although substantially all of the net proceeds are intended to be applied generally toward consummating a Business Combination. There is no assurance the Company will be able to complete a Business Combination successfully. Management placed $10.00 per Unit sold in the Public Offering into the Trust Account to be held until the earlier of (i) the consummation of its initial Business Combination or (ii) the Company's failure to consummate a Business Combination within 18 months from the consummation of the Public Offering. Placing funds in the Trust Account may not protect those funds from third party claims against the Company. Although the Company will use its reasonable best efforts to have all vendors, service providers, prospective target businesses or other entities it engages, execute agreements with the Company waiving any claim of any kind in or to any monies held in the Trust Account, there is no guarantee such persons will execute such agreements. Additionally, the interest earned on the Trust Account balance may be released to the Company for any amounts necessary to pay (i) the Company's income and other tax obligations, (ii) payment of $10,000 per month to our Sponsor or one of its affiliates, for up to 18 months, for office space, utilities and secretarial and administrative support commencing on April 13, 2018, the date of listing of the Company's securities on the NASDAQ, and (iii) the Company's liquidation expenses if the Company is unable to consummate a Business Combination within the required time period (up to a maximum of $50,000).

 

Cash proceeds from the Public Offering and the private placement remaining outside the Trust Account are available to pay prospective acquisition business, technical, legal and accounting due diligence, continuing general and administrative expenses and for working capital purposes. To meet additional working capital needs, the Company's Sponsor or its affiliates may, but are not obligated to, loan the Company funds as may be required. The loans would either be paid upon consummation of the Company's initial Business Combination, or, at the lender's discretion, up to $1,500,000 of such loans may be converted upon consummation of the Company's Business Combination into private placement warrants at a price of $1.00 per private placement warrant. If the Company does not complete a Business Combination, the loans would be repaid only out of funds held outside of the Trust Account. 

 

7

 

 

Initial Business Combination

 

Pursuant to the NASDAQ Capital Markets listing rules, the Company's initial Business Combination must be with a target business or businesses whose collective fair market value is at least equal to 80% of the balance in the Trust Account, net of taxes payable, at the time of the execution of a definitive agreement for such Business Combination, although this may entail simultaneous acquisitions of several target businesses. The fair market value of the target will be determined by the Company's board of directors based upon one or more standards generally accepted by the financial community (such as actual and potential sales, earnings, cash flow, proved oil and gas reserves, oil and gas production, oil and gas lease acreage and/or book value). The target business or businesses the Company acquires may have a collective fair market value substantially in excess of 80% of the Trust Account balance. To consummate such a Business Combination, the Company may issue a significant amount of its debt or equity securities to the sellers of such business and/or seek to raise additional funds through a private offering of debt or equity securities. If the Company's securities are not listed on NASDAQ at the time of the initial Business Combination, the Company would not be required to satisfy the 80% requirement. However, the Company intends to satisfy the 80% requirement even if the Company's securities are not listed on NASDAQ at the time of the initial Business Combination.

 

The Company will provide the public stockholders, who are the holders of the Class A common stock ("Public Shares") sold as part of the Units in the Public Offering, whether purchased in the Public Offering or in the aftermarket and the Company's stockholders prior to the Public Offering (including the Sponsor) (the "Initial Stockholders") to the extent they purchase such Public Shares ("Public Stockholders"), with an opportunity to redeem all or a portion of their Public Shares of the Company's Class A common stock, irrespective of whether they vote for or against the proposed transaction or if the Company conducts a tender offer, upon the completion of the initial Business Combination either (i) in connection with a stockholder meeting called to approve the Business Combination, or (ii) by means of a tender offer, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account including interest, net of taxes payable, divided by the number of the then outstanding shares of Class A common stock. The Class A common stock subject to redemption will be recorded at redemption value and classified as temporary equity, in accordance with Accounting Standards Codification ("ASC") Topic 480 "Distinguishing Liabilities from Equity". The Company will proceed with a Business Combination only if the Company has net tangible assets of at least $5,000,001 upon such consummation of a Business Combination and in the case of a stockholder vote, a majority of the outstanding shares voted are voted in favor of the Business Combination. The decision as to whether the Company will seek stockholder approval of a proposed Business Combination or conduct a tender offer will be made by the Company, solely in its discretion, based on a variety of factors such as the timing of the transaction and whether the terms of the transaction would otherwise require it to seek stockholder approval under the law or stock exchange listing requirement. If a stockholder vote is not required and the Company decides not to hold a stockholder vote for business or other legal reasons, the Company will, pursuant to the proposed amended and restated certificate of incorporation, (i) conduct the redemptions pursuant to Rule 13e-4 and Regulation 14E of the Exchange Act, which regulate issuer tender offers, and (ii) file tender offer documents with the Securities and Exchange Commission (“SEC”) prior to completing the initial Business Combination which contain substantially the same financial and other information about the initial Business Combination and the redemption rights as is required under Regulation 14A of the Exchange Act, which regulates the solicitation of proxies.

 

The Initial Stockholders will agree to vote their founders' shares (as described in Note 6) and any Public Shares purchased during or after the Public Offering in favor of the initial Business Combination, and the Company's executive officers, directors and director nominees have also agreed to vote any Public Shares purchased after the Public Offering in favor of the initial Business Combination. The Initial Stockholders entered into a letter agreement, pursuant to which they agreed to waive their redemption rights with respect to the initial Business Combination as to their founders' shares as well as any Public Shares purchased by the Initial Stockholders. In addition, the Initial Stockholders also agreed to waive their rights to liquidating distributions from the Trust Account with respect to the founders' shares if the Company fails to complete the initial Business Combination within the prescribed time frame. However, if the Initial Stockholders (or any of the Company's executive officers, directors or affiliates) acquire Public Shares after the Public Offering, they will be entitled to liquidating distributions from the Trust Account with respect to such Public Shares in the event the Company does not complete the initial Business Combination within such applicable time period.

 

Going Concern and Failure to Consummate a Business Combination

 

The Company has 18 months from the consummation of its Public Offering (until the close of business on October 16, 2019) to complete its initial Business Combination. If the Company is unable to complete the initial Business Combination within 18 months from the consummation of the Public Offering, the Company must: (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem the Public Shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest (which interest shall be net of taxes payable and up to $50,000 for dissolution expenses) divided by the number of then outstanding Public Shares, which redemption will completely extinguish public stockholders' rights as stockholders (including the right to receive further liquidation distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the Company's remaining stockholders and the Company's Board of Directors, dissolve and liquidate, subject in the case of clauses (ii) and (iii) to the Company's obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law.

 

8

 

 

This mandatory liquidation and subsequent dissolution of the Company if an initial Business Combination is not completed by the close of business on October 16, 2019 raises substantial doubt about the Company’s ability to continue as a going concern.  No adjustments have been made to the carrying amounts of assets or liabilities should the Company be required to liquidate after October 16, 2019. 

 

In the event of such liquidation, it is possible the per share value of the residual assets remaining available for distribution (including the Trust Account assets) will be less than the offering price per Unit in the Public Offering.  Based on the value of the Trust Account at June 30, 2019, the redemption value, after payment of accrued income taxes and other expenses, is greater than $10.00 per share.

   

 

 

Note 2 - Significant Accounting Policies

 

Basis of Presentation

 

The accompanying unaudited interim condensed financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and pursuant to the accounting and disclosure rules and regulations of the SEC, and reflect all adjustments, consisting only of normal recurring adjustments, which are, in the opinion of management, necessary for a fair presentation of the financial position as of June 30, 2019 and the results of operations and cash flows for the period presented. Certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to such rules and regulations. Interim results are not necessarily indicative of results for a full year.

 

The accompanying unaudited interim condensed financial statements should be read in conjunction with the audited financial statements and notes thereto included in the final prospectus filed by the Company with the SEC on April 16, 2018 and with the Company’s Annual Report on Form 10-K filed with the SEC on February 8, 2019.

 

Emerging growth company

 

The Company is an "emerging growth company," as defined in Section 2(a) of the Securities Act of 1933, as amended, (the "Securities Act"), as modified by the Jumpstart our Business Startups Act of 2012, (the "JOBS Act"), and it may take advantage of certain exemptions from various reporting requirements applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.

 

Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company's financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.

 

Net Income (Loss) Per Common Share

 

Net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. The Company has not considered the effect of the warrants sold in the Public Offering (including the over-allotment) and private placement warrants to purchase 20,700,000 and 10,280,000 shares of the Company’s Class A common stock, respectively, in the calculation of diluted income per share, since their inclusion would be anti-dilutive.

 

The Company’s statement of operations includes a presentation of net income per share for common shares subject to redemption in a manner similar to the two-class method of net income (loss) per share. Net income (loss) per common share for basic and diluted for Class A common stock is calculated by dividing the interest income earned on the Trust Account, net of applicable administrative fees, franchise taxes and income taxes, by the weighted average number of Class A common stock since issuance. Net loss per common share for basic and diluted for Class B common stock is calculated by dividing the net loss, which excludes income attributable to Class A common stock, by the weighted average number of Class B common stock outstanding for the period. 

 

9

 

 

Cash and cash equivalents

 

The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. The Company did not have any cash equivalents as of June 30, 2019 or December 31, 2018. 

 

Cash and Marketable Securities held in the Trust Account

 

The amounts held in the Trust Account represent proceeds from the Public Offering and the private placement of private placement warrants of $414,000,000 which were invested in permitted United States “government securities” within the meaning of Section 2(a)(16) of the Investment Company Act of 1940, as amended (the “Investment Company Act”), having a maturity of 180 days or less, or in money market funds meeting certain conditions under Rule 2a-7 under the Investment Company Act (“Permitted Investments”) and are classified as restricted assets because such amounts can only be used by the Company in connection with the consummation of an initial Business Combination.

 

As of June 30, 2019, and December 31, 2018, cash and Permitted Investments held in the Trust Account had a fair value of $422,347,275 and $418,727,517, respectively. For the three months and six months ended June 30, 2019, investments held in the Trust Account generated interest income of $2,592,502 and $5,027,471, respectively. From the IPO Closing Date through June 30, 2019, the Company paid $2,135,000 to the IRS, with funds received from the Trust Account, for estimated federal income taxes. From the IPO Closing Date through June 30, 2019, the Company paid $120,000 to an affiliate of our Sponsor, with funds received from the Trust Account, for administrative services.

 

Redeemable Common Stock

 

As discussed in Note 1, all of the 41,400,000 Public Shares contain a redemption feature which allows for the redemption of Class A Common Stock under the Company’s liquidation or tender offer/stockholder approval provisions. In accordance with FASB ASC 480, redemption provisions not solely within the control of the Company require the security to be classified outside of permanent equity. Ordinary liquidation events, which involve the redemption and liquidation of all of the entity’s equity instruments, are excluded from the provisions of FASB ASC 480. Although the Company has not specified a maximum redemption threshold, its amended and restated certificate of incorporation provides that in no event will the Company redeem its Public Shares in an amount that would cause its net tangible assets to be less than $5,000,001.

 

The Company recognizes changes in redemption value immediately as they occur and will adjust the carrying value of the security at the end of each reporting period. Increases or decreases in the carrying number of redeemable shares of Class A Common Stock shall be affected by charges against additional paid-in capital.

 

Accordingly, at June 30, 2019, the 41,400,000 shares of Class A Common Stock were classified outside of permanent equity at approximately $10.00 per share.

 

Concentration of credit risk

 

Financial instruments that potentially subject the Company to concentration of credit risk consist of a cash account in a financial institution which, at times may exceed the Federal depository insurance coverage of $250,000. At June 30, 2019, the Company had not experienced losses on this account and management believes the Company is not exposed to significant risks on such account.

 

Use of estimates

 

The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates.

 

Fair value of financial instruments

 

The fair value of the Company's assets and liabilities, which qualify as financial instruments under ASC Topic 820, "Fair Value Measurements and Disclosures", approximates the carrying amounts represented in the accompanying balance sheets, primarily due to their short-term nature.

 

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Offering Costs

 

The Company complies with the requirements of FASB ASC 340-10-S99-1 and SEC Staff Accounting Bulletin (“SAB”) Topic 5A – “Expenses of Offering”. Offering costs of $9,506,582 consisting principally of underwriting discounts of $8,280,000 and $1,226,582 of professional, printing, filing, regulatory and other costs incurred through the date of the financial statements directly related to the preparation of the Public Offering were charged to stockholders' equity upon completion of the Public Offering (See Note 3).

 

Income taxes

 

The Company follows the asset and liability method for accounting for income taxes under FASB ASC 740 - "Income Taxes." Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that included the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

 

FASB ASC 740 prescribes a recognition threshold and a measurement attribute for financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of June 30, 2019 and December 31, 2018. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception.  

 

Related Parties

 

The Company follows subtopic ASC 850-10 for the identification of related parties and disclosure of related party transactions.

 

Pursuant to Section 850-10-20, the related parties include: (a) affiliates of the Company (“Affiliate” means, with respect to any specified person, any other person that, directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with such person, as such terms are used in and construed under Rule 405 under the Securities Act); (b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825-10-15, to be accounted for by the equity method by the investing entity; (c) trusts for the benefit of employees, such as pension and profit-sharing thrust that are managed by or under the trusteeship of management; (d) principal owners of the Company; (e) management of the Company; (f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and (g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.

 

Recent Accounting Pronouncements

 

The Company has evaluated recently issued, but not yet effective, accounting pronouncements and does not believe they would have a material effect on the Company's financial statements.

 

Subsequent Events

 

The Company evaluates subsequent events and transactions that occur after the balance sheet date for potential recognition or disclosure. Any material events that occur between the balance sheet date and the date the financial statements were issued are disclosed as subsequent events, while the financial statements are adjusted to reflect any conditions that existed at the balance sheet date.

 

11

 

 

 

Note 3 - Public Offering and Private Placement

 

Public Offering

 

On April 17, 2018, the Company sold 41,400,000 Units in its initial Public Offering, including 5,400,000 Units sold to cover over-allotments, at a price of $10.00 per Unit resulting in gross proceeds of $414,000,000. Each Unit consists of one share of the Company's Class A common stock and one-half of one warrant, each whole warrant entitles the holder to purchase one share of Class A common stock at a price of $11.50 per share, subject to adjustment ("Warrant"). No fractional Warrants will be issued upon separation of the Units and only whole Warrants will trade. Each Warrant will become exercisable on the later of (i) 30 days after the completion of the initial Business Combination and (ii) 12 months from the closing of the Public Offering, April 17, 2018, and will expire five years after the completion of the initial Business Combination or earlier upon redemption or liquidation.

 

The Company may redeem the Warrants, in whole and not in part, at a price of $0.0l per Warrant upon 30 days' notice ("30-day redemption period"), only in the event the last sales price of the Class A common stock equals or exceeds $18.00 per share for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which notice of redemption is given, provided there is an effective registration statement with respect to the shares of Class A common stock underlying such Warrants and a current prospectus relating to those shares of Class A common stock is available throughout the 30-day redemption period. If the Company calls the Warrants for redemption as described above, the Company's management will have the option to require all holders that wish to exercise Warrants to do so on a "cashless basis." In determining whether to require all holders to exercise their Warrants on a "cashless basis," the management will consider, among other factors, the Company's cash position, the number of Warrants outstanding and the dilutive effect on the Company's stockholders of issuing the maximum number of shares of Class A common stock issuable upon the exercise of the Warrants.

 

The Sponsor has committed to offer or cause an affiliate to offer to purchase, at $1.00 per Warrant (exclusive of commissions), the outstanding Warrants in a tender offer that would commence after our announcement of an initial Business Combination and occur in connection with such Business Combination. The warrant tender offer would not be conditioned upon any minimum number of Warrants being tendered. The Sponsor also committed to offer or cause an affiliate to offer to purchase, at $1.00 per Warrant (exclusive of commissions), the outstanding Warrants in a tender offer that would commence after our filing of a proxy statement or information statement with respect to a proposed amendment to our amended and restated certificate of incorporation that would affect the substance of timing of our obligation to redeem 100% of our public shares if we do not complete a Business Combination within 18 months from the consummation of our Public Offering. Any such purchases would occur in connection with the effectiveness of such amendment.

 

There will be no redemption rights or liquidating distributions with respect to the Warrants, which will expire worthless if we fail to complete our Business Combination within the 18-month time period. The Company paid an underwriting discount of 2.0% of the per Unit offering price to the underwriters at the closing of the Public Offering.

 

Private Placement

 

The Sponsor purchased from the Company an aggregate of 10,280,000 private placement warrants at $1.00 per private placement warrant (for a total purchase price of $10,280,000) in a private placement that occurred simultaneously with the consummation of the offering.

  

 

Note 4 - Related Party Transactions

 

Founders’ Shares

 

In connection with the organization of the Company, a total of 10,062,500 shares of Class B common stock were sold to the Sponsor at a price of approximately $0.002 per share for an aggregate of $25,000 ("Founders' Shares"). In March 2018, our Sponsor returned to us, at no cost, an aggregate of 1,437,500 Founders’ Shares, which we cancelled, leaving an aggregate of 8,625,000 Founders’ Shares outstanding. In March 2018, our Sponsor transferred 40,000 Founders’ Shares to each of its three independent director nominees resulting in a total of 120,000 Founders’ Shares transferred to our independent director nominees. In April 2018, we effected a stock dividend of 0.2 shares of Class B common stock for each outstanding share of Class B common stock, resulting in our Sponsor and independent director nominees holding an aggregate of 10,350,000 Founders’ Shares. The Sponsor would have been required to forfeit only a number of shares of Class B common stock necessary to continue to maintain the 20.0% ownership interest in our shares of common stock after giving effect to the offering and exercise, if any, of the underwriters' over-allotment option. As a result of the full exercise of the underwriters' over-allotment option, no shares were forfeited.

 

Subject to certain limited exceptions, 50% of the Founders' Shares will not be transferred, assigned, sold until the earlier of: (i) one year after the date of the consummation of the initial Business Combination or (ii) the date on which the closing price of the Company's Class A common stock equals or exceeds $12.00 per share (as adjusted) for any 20 trading days within any 30-trading day period commencing after the initial Business Combination, and the remaining 50% of the Founders' Shares will not be transferred, assigned, sold until one year after the date of the consummation of the initial Business Combination, or earlier, in either case, if, subsequent to the Company's initial Business Combination, the Company consummates a subsequent liquidation, merger, stock exchange, reorganization or other similar transaction which results in all stockholders having the right to exchange their common stock for cash, securities or other property.

 

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Related Party Loans

 

The Sponsor loaned the Company an aggregate of up to $200,000 to cover expenses related to the Company's formation and the Public Offering. The note was executed on December 16, 2017 and the Company requested and received $200,000 in funds on January 5, 2018. The Company repaid the note on April 17, 2018 in full without interest.

 

We do not believe we will need to raise additional funds following the offering to meet the expenditures required for operating our business. However, to finance transaction costs in connection with an intended initial Business Combination, our Sponsor, officers, directors or their affiliates may, but are not obligated to, loan us funds as may be required. If we consummate an initial Business Combination, we would repay such loaned amounts. In the event the initial Business Combination does not close, we may use a portion of the working capital held outside the Trust Account to repay such loaned amounts, but no proceeds from our Trust Account would be used for such repayment. Up to $1,500,000 of such loans may be convertible into private placement warrants of the post Business Combination entity at a price of $1.00 per private placement warrant at the option of the lender.

 

Administrative Service Agreement

 

Commencing on April 13, 2018, the date of the listing of our securities on the NASDAQ, through the earlier of our consummation of our initial Business Combination or our liquidation, we have agreed to pay our Sponsor or one of its affiliates $10,000 per month for up to 18 months to entice our Sponsor to make available to us certain general and administrative services, including office space, utilities and administrative support, as we may require from time to time. The Company incurred administrative expenses of $30,000 and $26,000 for the three-month periods ended June 30, 2019 and June 30, 2018, respectively. For the six-month periods ended June 30, 2019 and June 30, 2018, the Company incurred $60,000 and $26,000 for administrative services, respectively. From the IPO Closing Date through June 30, 2019, the Company paid $120,000 to an affiliate of our Sponsor, with funds received from the Trust Account, for administrative services. Upon completion of the initial Business Combination or our liquidation, we will cease paying these monthly fees.

 

Private Placement

 

As discussed in Note 1, the Sponsor purchased an aggregate of 10,280,000 private placement warrants at $1.00 per private placement warrant (for a total purchase price of $10,280,000) from us simultaneous with the closing of the Public Offering. Each whole private placement warrant is exercisable for one whole share of the Company’s Class A Common Stock at a price of $11.50 per share. A portion of the purchase price of the private placement warrants was added to the proceeds from the Public Offering held in the Trust Account. If the initial Business Combination is not completed within 18 months from the closing of the Public Offering, the proceeds from the sale of the private placement warrants held in the Trust Account will be used to fund the redemption of the Public Shares (subject to the requirements of applicable law) and the private placement warrants will expire worthless. The private placement warrants will be non-redeemable and exercisable on a cashless basis so long as they are held by the Sponsor or its permitted transferees.

 

The Sponsor and the Company’s officers and directors agreed, subject to limited exceptions, not to transfer, assign or sell any of their private placement warrants until 30 days after the completion of the initial Business Combination.

 

Forward Purchase Agreement

 

In April 2018, HighPeak Energy Partners, LP ("HighPeak LP") entered into a forward purchase agreement with us that provides for the purchase by HighPeak LP of an aggregate of up to 15,000,000 shares of our Class A common stock and 7,500,000 warrants for $10.00 per forward unit, for an aggregate purchase price of up to $150,000,000 in a private placement that will close simultaneously with the closing of our initial Business Combination. HighPeak LP is a limited partnership affiliated with our Sponsor. The forward purchase warrants will have the same terms as the private placement warrants so long as they are held by HighPeak LP, its affiliates or its permitted transferees, and the forward purchase shares are identical to the shares of Class A common stock included in the Units sold in the Public Offering, except the forward purchase shares are subject to transfer restrictions and certain registration rights, as described in the forward purchase agreement. HighPeak LP's commitment under the forward purchase agreement may be reduced under certain circumstances as described in the agreement.

 

Warrant Tender Offer

 

Our Sponsor has committed to offer or cause an affiliate to offer to purchase, at $1.00 per public warrant (exclusive of commissions), the outstanding public warrants in a tender offer that would commence after our announcement of an initial Business Combination and occur in connection with such Business Combination. The warrant tender offer would not be conditioned upon any minimum number of warrants being tendered.

 

13

 

 

Our Sponsor has also committed to offer or cause an affiliate to offer to purchase, at $1.00 per public warrant (exclusive of commissions), the outstanding public warrants in a tender offer that would commence after our filing of a proxy statement or information statement with respect to a proposed amendment to our amended and restated certificate of incorporation that would affect the substance of timing of our obligation to redeem 100% of our public shares if we do not complete a Business Combination within 18 months from the closing of the Public Offering. Any such purchases would occur in connection with the effectiveness of such amendment.

 

In April 2018, an affiliate of our Sponsor deposited cash funds in an amount equal to $20,700,000 with Continental Stock Transfer & Trust Company prior to the closing of the Public Offering. The funds held in the escrow account may be used (or the letter of credit referred to below may be drawn upon) to pay $1.00 per whole warrant to holders of public warrants (excluding private placement warrants or forward purchase warrants) that tender in the tender offer for the public warrants. At any time, our Sponsor or its affiliate may substitute a letter of credit from a financially capable bank in good standing in lieu of cash or cash in lieu of a letter of credit. Neither funds in the escrow account nor the letter of credit shall be held in trust nor comprise any portion of any pro-rata distribution of our Trust Account. In the event a Business Combination is announced and a tender offer for the warrants is made, but the Business Combination is later abandoned, the tender offer will not be closed, and the warrants will be returned to the holders.

 

In the event we are unable to close a Business Combination within the allotted time, the escrow agent will be authorized to transfer $1.00 per whole public warrant, to holders of public warrants other than our sponsor and its affiliates, at the same time as we redeem our public shares, and all warrants will expire worthless.

   

 

Note 5 - Commitments and Contingencies

 

Business Combination Marketing Agreement

 

The Company engaged the underwriters from our Public Offering as advisors in connection with any potential Business Combination to assist us in holding meetings with our stockholders to discuss the potential Business Combination and the target business' attributes, introduce us to potential investors interested in purchasing our securities, assist us in obtaining stockholder approval for the Business Combination and assist us with our press releases and public filings in connection with the Business Combination. The Company will pay Oppenheimer & Co. Inc. and EarlyBirdCapital a cash fee equal to 3.5% of the gross proceeds of the Public Offering (exclusive of any applicable finders’ fees which might become payable) for such services upon the consummation of our initial Business Combination. As of June 30, 2019, and December 31, 2018, none of the above services had been performed and accordingly, no amounts have been recorded in the accompanying financial statements.

 

Registration Rights

 

The holders of our Founders' Shares issued and outstanding and any private placement warrants issued to our Sponsor, officers, directors or their affiliates, including private placement warrants issued in payment of working capital loans made to us (and all underlying securities), will be entitled to registration rights pursuant to an agreement signed April 12, 2018. The holders of a majority of these securities are entitled to make up to three demands that we register such securities. The holders of the majority of the Founders' Shares can elect to exercise these registration rights at any time commencing three months prior to the date on which these shares of Class B common stock are to be released from escrow. The holders of a majority of the private placement warrants issued to our Sponsor, officers, directors or their affiliates in payment of working capital loans made to us (or underlying securities) can elect to exercise these registration rights at any time after we consummate a Business Combination. In addition, the holders have certain "piggy-back" registration rights with respect to registration statements filed subsequent to our consummation of a Business Combination. The Company will bear the expenses incurred in connection with the filing of any such registration statements.

   

 

Note 6 - Stockholders' Equity

 

Preferred Stock

 

The Company is authorized to issue 1,000,000 shares of preferred stock with a par value of $0.0001 per share with such designation, rights and preferences as may be determined from time to time by the Company's board of directors. At June 30, 2019 and December 31, 2018, no preferred stock is issued or outstanding.

 

Class A Common Stock

 

The Company is authorized to issue up to 200,000,000 shares of Class A Common Stock. If the Company enters into an initial Business Combination, it may (depending on the terms of such initial Business Combination) be required to increase the number of shares of Class A Common Stock which the Company is authorized to issue at the same time as the Company’s stockholders vote on the initial Business Combination to the extent the Company seeks stockholder approval in connection with the initial Business Combination. Holders of the Company’s common stock are entitled to one vote for each share of common stock held. At June 30, 2019 and December 31, 2018, there were 41,400,000 shares of Class A Common Stock, of which 41,400,000 were classified outside of permanent equity.

 

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Class B Common Stock

 

The Company is authorized to issue up to 15,000,000 shares of Class B Common Stock. At June 30, 2019 and December 31, 2018, there were 10,350,000 shares of Class B Common Stock issued and outstanding. See Note 4 – Founders Shares.  

 

 

 

 

Note 7 – Fair Value Measurements

 

The following table presents information about the Company’s assets, measured on a recurring basis, as of June 30, 2019 and December 31, 2018. The table indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities. Fair values determined by Level 2 inputs utilize data points that are observable, such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and includes situations where there is little, if any, market activity for the asset or liability.

 

   

June 30, 2019

   

December 31, 2018

 

Description

 

Level 1

   

Level 2

   

Level 3

   

Level 1

   

Level 2

   

Level 3

 

Cash and Investments held in Trust Account

  $ 422,347,275     $ -     $ -     $ 418,727,517     $ -     $ -  

 

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

Forward Looking Statements

 

This Quarterly Report on Form 10-Q includes forward-looking statements. We have based these forward-looking statements on our current expectations and projections about future events. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “could”, “would”, “expect”, “plan”, “anticipate”, “believe”, “estimate”, “continue”, or the negative of such terms or other similar expressions. Factors that might cause or contribute to such a discrepancy include, but are not limited to, those described in our other Securities and Exchange (“SEC”) filings. References to “we”, “us”, “our” or the “Company” are to Pure Acquisition Corp. The following discussion should be read in conjunction with our condensed financial statements and related notes thereto included elsewhere in this report.

 

Overview

 

We are a blank check company incorporated as a Delaware corporation and formed for the purpose of effecting a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization or other similar Business Combination with one or more businesses or entities (a "Business Combination"). We intend to focus our search for target businesses in the energy industry with an emphasis on opportunities in the upstream oil and gas industry in North America. On April 17, 2018 (the “IPO Closing Date”), we consummated our initial public offering (the “Public Offering”) of 41,400,000 units (the “Units”), including 5,400,000 Units sold to cover over-allotments, at a price of $10.00 per Unit resulting in gross proceeds of $414,000,000.

 

HighPeak Pure Acquisition, LLC (our “Sponsor”) purchased an aggregate of 10,280,000 private placement warrants at a purchase price of $1.00 per private placement warrant, or $10,280,000 in the aggregate.

 

On April 17, 2018, a portion of the proceeds from our Public Offering and the sale of our private placement warrants in the aggregate amount of $414,000,000 was placed in a U.S.-based trust account at J.P. Morgan, N.A. maintained by Continental Stock Transfer & Trust Company, acting as trustee, for the benefit of our public stockholders (the “Trust Account”).

 

On April 12, 2018, HighPeak Energy Partners, LP ("HighPeak LP"), an affiliate of our Sponsor, entered into a forward purchase agreement with us that provides for the purchase by HighPeak LP of an aggregate of up to 15,000,000 shares of our Class A common stock and 7,500,000 warrants for $10.00 per forward purchase unit, for an aggregate purchase price of up to $150,000,000 in a private placement that will close simultaneously with the closing of our initial Business Combination (the “Forward Purchase Securities”). HighPeak LP is a limited partnership affiliated with our Sponsor. The forward purchase warrants will have the same terms as the private placement warrants so long as they are held by HighPeak LP, its affiliates or its permitted transferees, and the forward purchase shares are identical to the shares of Class A common stock included in the Units sold in the Public Offering, except the forward purchase shares are subject to transfer restrictions and certain registration rights, as described in the forward purchase agreement. HighPeak LP's commitment under the forward purchase agreement may be reduced under certain circumstances as described in the agreement.

 

We are currently in the process of identifying suitable targets for an initial Business Combination. We intend to close our initial Business Combination using cash from the proceeds of the Public Offering, the sale of the private placement warrants, the private placement of Forward Purchase Securities and from additional issuances, if any, or our capital stock, debt or a combination of cash, stock and debt. We are pursuing acquisition opportunities and, at any given time, may be in various stages of due diligence or preliminary discussions with respect to a number of potential acquisitions. From time to time, we many enter into non-binding letters of intent. We are not currently subject to any definitive agreement with respect to any Business Combination. However, we cannot assure you we will be able to identify any suitable target candidates or, if identified, be able to complete the acquisition of such candidates on favorable terms or at all.

 

Results of Operations

 

We have neither engaged in any significant operations nor generated any operating revenue. Our only activities from inception through the IPO Closing Date have been related to our formation and the Public Offering. Although we have not generated operating revenue, we have generated non-operating income in the form of interest income on cash and cash equivalents. We expect to incur increased expenses as a result of being a public company (for legal, financial reporting, accounting and auditing compliance), as well as costs in the pursuit of an acquisition target.

 

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For the three months ended June 30, 2019, we had net income of $1,953,936 which consisted of interest income held in the Trust Account of $2,592,502 net of operating costs of $ 71,884, administrative service fees of $30,000 and an income tax provision of $536,681.  For the three months ended June 30, 2018 we had a net income of $ $1,066,729. For the six months ended June 30, 2019, we had net income of $ $3,698,941 which consisted of interest income held in the Trust Account of $ 5,027,471 net of operating costs of $231,016, administrative service fees of $60,000 and an income tax provision of $1,037,514.  For the six months ended June 30, 2018 we had net income of $1,066,279.

 

Liquidity and Capital Resources

 

Until the consummation of the Public Offering, our only source of liquidity was an initial sale of shares (the “Founders’ Shares”) of Class B common stock, par value $0.0001 per share (the “Class B Common Stock”), to the Sponsor and the proceeds of a $200,000 loan from our Sponsor. Upon the closing of the Public Offering, the Company repaid the Sponsor $200,000 in settlement of the outstanding loan in full.

 

On the IPO Closing Date, we consummated the Public Offering of 41,400,000 Units, including 5,400,000 Units sold to cover the over-allotments at a price of $10.00 per Unit resulting in gross proceeds from the Public Offering of $414,000,000.

 

Our Sponsor purchased an aggregate of 10,280,000 private placement warrants at a purchase price of $1.00 per private placement warrant, or $10,280,000 in the aggregate.

 

On April 17, 2018, proceeds of $414,000,000 were deposited in a U.S.-based trust account at J.P. Morgan, N.A. maintained by Continental Stock Transfer & Trust Company, acting as trustee, for the benefit of our public stockholders. Of the gross proceeds received from the Public Offering and the sale of the private placement warrants not deposited into the Trust Account, $8,280,000 was used to pay underwriting discounts and commissions in the Public Offering, $200,000 was used to repay the loan from the Sponsor in full and the balance was reserved to pay accrued offering and formation expenses; and prospective acquisition business, technical, legal and accounting due diligence expenses; and continuing general and administrative expenses.

 

We had cash of $578,974 and $734,894 at June 30, 2019 and December 31, 2018, respectively.

 

In addition, interest income from the Trust Account may be released to us for any amounts necessary to pay (i) the Company's income and other tax obligations, (ii) payment of $10,000 per month to our Sponsor or one of its affiliates, for up to 18 months, for office space, utilities and secretarial and administrative support commencing on April 13, 2018, the date of listing of our securities on the NASDAQ, and (iii) our liquidation expenses if the Company is unable to consummate a Business Combination within the required time period (up to a maximum of $50,000).

 

The Company has 18 months from the consummation of its Public Offering (until the close of business on October 16, 2019) to complete its initial Business Combination. If the Company is unable to complete the initial Business Combination within 18 months from the consummation of the Public Offering, the Company must: (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem the Public Shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest (which interest shall be net of taxes payable and up to $50,000 for dissolution expenses) divided by the number of then outstanding Public Shares, which redemption will completely extinguish public stockholders' rights as stockholders (including the right to receive further liquidation distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the Company's remaining stockholders and the Company's Board of Directors, dissolve and liquidate, subject in the case of clauses (ii) and (iii) to the Company's obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law.

 

This mandatory liquidation and subsequent dissolution of the Company if an initial Business Combination is not completed by the close of business on October 16, 2019 raises substantial doubt about the Company’s ability to continue as a going concern.  No adjustments have been made to the carrying amounts of assets or liabilities should the Company be required to liquidate after October 16, 2019. 

 

In the event of such liquidation, it is possible the per share value of the residual assets remaining available for distribution (including the Trust Account assets) will be less than the offering price per Unit in the Public Offering.

 

Off-Balance Sheet Arrangements

 

We do not have any off-balance sheet arrangements as of June 30, 2019 or December 31, 2018.

 

17

 

 

Contractual Obligations

 

At June 30, 2019 and December 31, 2018, we did not have any long-term debt, capital lease obligations, operating lease obligations or long-term liabilities. On April 12, 2018, we entered into an administrative services agreement pursuant to which we agreed to pay our Sponsor or one of its affiliates a total of $10,000 per month for office space, utilities, secretarial support and administrative services. The Company incurred administrative expenses of $30,000 and $26,000 for the three-month periods ended June 30, 2019 and June 30, 2018, respectively.  From the IPO Closing Date through June 30, 2019, the Company paid $120,000 to an affiliate of our Sponsor, with funds received from the Trust Account, for administrative services. Upon completion of the initial Business Combination or our liquidation, we will cease paying these monthly fees.

 

On April 12, 2018, we engaged Oppenheimer & Co. Inc. and EarlyBirdCapital severally as advisors in connection with a potential Business Combination to assist us in arranging meetings with our stockholders to discuss the potential Business Combination and the target business’ attributes, introduce us to potential investors interested in purchasing our securities, assist us in obtaining stockholder approval for the Business Combination and assist us with the preparation of our press releases and public filings in connection with the Business Combination. We will pay Oppenheimer & Co. Inc. and EarlyBirdCapital a cash fee for such services in an amount equal to 3.5% of the gross proceeds of the Public Offering (exclusive of any applicable finders’ fees which may become payable) upon the consummation of our initial Business Combination. Pursuant to the terms of the business combination marketing agreement, no fee will be due if we do not complete an initial Business Combination.

 

Recent Accounting Pronouncements

 

The Company has evaluated recently issued, but not yet effective, accounting pronouncements and does not believe they would have a material effect on the Company's financial statements. 

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

 

As of June 30, 2019, we were not subject to any market or interest rate risk. The net proceeds from the Public Offering and the sale of the private placement warrants held in the Trust Account have been invested solely in U.S. government treasury bills with a maturity of 180 days or less or in money market funds meeting certain conditions under Rule 2a-7 under the Investment Company Act which invest only in direct U.S. government treasury obligations. Due to the short-term nature of these investments, we believe there is no associated material exposure to interest rate risk.

 

Item 4. Controls and Procedures

 

Disclosure controls and procedures are controls and other procedures designed to ensure information required to be disclosed in our reports filed or submitted under the Securities and Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure information required to be disclosed in company reports filed or submitted under the Exchange Act is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

 

As required by Rules 13a-15 and 15d-15 under the Exchange Act, our Chief Executive Officer and Chief Financial Officer carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of June 30, 2019. Based upon their evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15 (e) and 15d-15 (e) under the Exchange Act were effective.

 

During the most recently completed fiscal quarter, there has been no change in our internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

 

18

 

 

PART II – OTHER INFORMATION

 

Item 1. Legal Proceedings

 

None

 

Item 1A. Risk Factors

 

As of the date of this Quarterly Report on Form 10-Q, there have been no material changes to the risk factors disclosed in our Annual Report on Form 10-K filed with the SEC on February 8, 2019.

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 

Unregistered Sales

 

On November 13, 2017, a total of 10,062,500 shares of Class B common stock were sold to the Sponsor at a price of approximately $0.002 per share for an aggregate of $25,000. In March 2018, our Sponsor returned to us, at no cost, an aggregate of 1,437,500 Founders’ Shares, which we cancelled, leaving an aggregate of 8,625,000 Founders’ Shares outstanding. In March 2018, our Sponsor transferred 40,000 Founders’ Shares to each of our three independent director nominees resulting in a total of 120,000 Founders’ Shares transferred to our independent director nominees. In April 2018, we effected a stock dividend of 0.2 shares of Class B common stock for each outstanding share of Class B common stock, resulting in our Sponsor and independent director nominees holding an aggregate of 10,350,000 Founders’ Shares. The Founders’ Shares were issued in connection with our organization pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”).

 

The Sponsor purchased an aggregate of 10,280,000 private placement warrants at $1.00 per private placement warrant (for a total purchase price of $10,280,000) from us simultaneous with the closing of the Public Offering. Each private placement warrant entitles the holder thereof to purchase one share of our Class A common stock at an exercise price of $11.50 per share. The sale of the private placement warrants was made pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities Act.

 

Use of Proceeds

 

On the IPO Closing Date, we consummated the Public Offering of 41,400,000 Units, including 5,400,000 Units sold to cover the over-allotments at a price of $10.00 per Unit resulting in gross proceeds from the Public Offering of $414,000,000.

 

On April 17, 2018, simultaneous with the consummation of the Public Offering, we completed the private sale to our Sponsor of 10,280,000 private placement warrants at a purchase price of $1.00 per private placement warrant resulting in gross proceeds of $10,280,000.

 

Oppenheimer & Co. and EarlyBirdCapital, Inc. served as underwriters for the Public Offering. The securities sold in the Public Offering were registered under the Securities Act on registrations on Form S-1 (File No. 333-223845) (the “Registration Statement”). The SEC declared the Registration Statement effective April 12, 2018.

 

We incurred approximately $9,506,582 for costs and expenses related to the Public Offering as of June 30, 2019 and December 31, 2018. In connection with the closing of the Public Offering, we paid a total of $8,280,000 in underwriting discounts and commissions. On January 5, 2018 the Sponsor loaned the Company an aggregate of up to $200,000 to cover expenses related to the Company's formation and the Public Offering. The Company repaid the note on April 17, 2018 in full without interest. A total of $585,157 was paid upon completion of the Public Offering out of the $1,000,000 of the proceeds of the Public Offering and the sale of private placement warrants to our Sponsor allocated for the for the payment of offering expenses other than underwriting discounts and commissions. There has been no material change in the planned use of proceeds from the Public Offering as described in our final prospectus filed with the SEC on April 16, 2018.

 

After deducting the underwriting discounts and commissions and offering expenses, the total net proceeds from our Public Offering and sale of private placement warrants were $415,000,000, of which $414,000,000 (or $10.00 per Unit sold in the Public Offering) was placed in the Trust Account.

 

Item 3. Defaults Upon Senior Securities

 

None

 

19

 

 

Item 4. Mine Safety Disclosures

 

Not applicable.

 

Item 5. Other Information

 

None

 

Item 6. Exhibits

 

20

 

 

EXHIBITS INDEX

 

Exhibit

No.

 

Description

 

 

 

   3.1

 

Second Amended and Restated Certificate of Incorporation of Pure Acquisition Corp. (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K (File No. 001-38454) filed with the SEC on April 18, 2018).

 

 

 

   3.2

 

Certificate of Amendment to the Certificate of Incorporation of Pure Acquisition Corp. (incorporated by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K (File No. 001-38454) filed with the SEC on April 18, 2018).

 

 

 

   3.3

 

Bylaws of Pure Acquisition Corp. (incorporated by reference to Exhibit 3.3 to the Company’s Registration Statement on Form S-1 (File No. 333-223845) filed with the SEC on March 22, 2018).

 

 

 

   4.1

 

Specimen Unit Certificate (incorporated by reference to Exhibit 4.1 to the Company’s Registration Statement on Form S-1 (File No. 333-223845) filed with the SEC on March 22, 2018).

 

 

 

   4.2

 

Specimen Class A Common Stock Certificate (incorporated by reference to Exhibit 4.2 to the Company’s Registration Statement on Form S-1 (File No. 333-223845) filed with the SEC on March 22, 2018).

 

 

 

   4.3

 

Specimen Warrant Certificate (incorporated by reference to Exhibit 4.3 to the Company’s Registration Statement on Form S-1 (File No. 333-223845) filed with the SEC on March 22, 2018).

 

 

 

   4.4

 

Warrant Agreement, dated April 12, between Pure Acquisition Corp. and Continental Stock Transfer & Trust Company, as warrant agent (incorporated by reference to Exhibit 4.4 to the Company’s Current Report on Form 8-K (File No. 001-38454) filed with the SEC on April 18, 2018).

 

 

 

  10.1

 

Letter Agreement, dated April 12, 2018, among Pure Acquisition Corp., its officers and directors and HighPeak Pure Acquisition, LLC (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K (File No. 001-38454) filed with the SEC on April 18, 2018).

 

 

 

  10.2

 

Investment Management Trust Agreement, dated April 12, 2018, between Pure Acquisition Corp. and Continental Stock Transfer & Trust Company, as trustee (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K (File 001-38454) filed with the SEC on April 18, 2018).

 

 

 

  10.4

 

Registration Rights Agreement, dated April 12, 2018, among Pure Acquisition Corp., HighPeak Pure Acquisition, LLC and certain other security holders named therein (incorporated by reference to Exhibit 10.4 to the Company’s Current Report on Form 8-K (File 001-38454) filed with the SEC on April 18, 2018).

 

 

 

  10.6

 

Forward Purchase Agreement, dated April 12, 2018, between Pure Acquisition Corp. and HighPeak Energy Partners, LP (incorporated by reference to Exhibit 10.6 to the Company’s Current Report on Form 8-K (File No. 001-38454) filed with the SEC on April 18, 2018).

 

 

 

  10.8

 

Administrative Services Agreement, dated April 12, 2018, between Pure Acquisition Corp. and HighPeak Pure Acquisition, LLC (incorporated by reference to Exhibit 10.8 to the Company’s Quarterly Report on Form 10-Q (File No. 001-38454) filed with the SEC on May 25, 2018).

 

 

 

  31.1

 

Certification of the Chief Executive Officer required by Rule 13a-14(a) or Rule 15d-14(a).

 

 

 

  31.2

 

Certification of the Chief Financial Officer required by Rule 13a-14(a) or Rule 15d-14(a).

 

 

 

  32.1

 

Certification of the Chief Executive Officer required by Rule 13a-14(b) or Rule 15d-14(b) and U.S.C. 1350.

 

 

 

  32.2

 

Certification of the Chief Financial Officer required by Rule 13a-14(b) or Rule 15d-14(b) and U.S.C. 1350.

 

 

 

101.INS

 

XBRL Instance Document

 

 

 

101.SCH

 

XBRL Taxonomy Extension Schema Document

 

 

 

101.CAL

 

XBRL Taxonomy Extension Calculation Linkbase Document

 

 

 

101.DEF

 

XBRL Taxonomy Extension Definition Linkbase Document

 

 

 

101.LAB

 

XBRL Taxonomy Extension Label Linkbase Document

 

 

 

101.PRE

 

XBRL Taxonomy Extension Presentation Linkbase Document

 

21

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be sign on its behalf by the undersigned thereunto duly authorized.

 

 

PURE ACQUISITION CORP.

(Registrant)

 

 

 

 

By:

/s/ Steven W. Tholen

 

 

Steven W. Tholen

 

 

Chief Financial Officer

 

 

(Duly Authorized Officer and

 

 

Principal Financial Officer)

 

Date: July 26, 2019

 

22

EX-31.1 2 ex_150596.htm EXHIBIT 31.1 ex_150596.htm

Exhibit 31.1

 

CERTIFICATION PURSUANT TO

RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 

I, Jack Hightower, certify that:

 

1.       I have reviewed this Quarterly Report on Form 10-Q of Pure Acquisition Corp. for the quarterly period ended June 30, 2019;

 

2.       Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.       Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.       The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

 

(a)       Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b)       [omitted];

 

(c)       Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

(d)       Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.       The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

(a)       All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

(b)       Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: July 26, 2019

/s/ Jack Hightower

Jack Hightower

Chief Executive Officer

(Principal Executive Officer)

 

EX-31.2 3 ex_150597.htm EXHIBIT 31.2 ex_150597.htm

Exhibit 31.2

 

CERTIFICATION PURSUANT TO

RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 

I, Steven W. Tholen, certify that:

 

1.       I have reviewed this Quarterly Report on Form 10-Q of Pure Acquisition Corp. for the quarterly period ended June 30, 2019;

 

2.       Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.       Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.       The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

 

(a)       Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b)       [omitted];

 

(c)       Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

(d)       Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.       The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

(a)       All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

(b)       Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: July 26, 2019

/s/ Steven W. Tholen

Steven W. Tholen

Chief Financial Officer

(Principal Financial Officer)

 

EX-32.1 4 ex_150598.htm EXHIBIT 32.1 ex_150598.htm

Exhibit 32.1

 

CERTIFICATION PURSUANT TO

18 U.S.C. 1350

(SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002)

 

I, Jack Hightower, Chief Executive Officer of Pure Acquisition Corp. (the “Company”), certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that, to my knowledge:

 

(1)       the Quarterly Report on Form 10-Q of the Company for the quarterly period June 30, 2019 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and

 

(2)       the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

This certificate is being furnished solely for the purposes of 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.

 

Date: July 26, 2019

/s/ Jack Hightower

Jack Hightower

Chief Executive Officer

(Principal Executive Officer)

 

EX-32.2 5 ex_150599.htm EXHIBIT 32.2 ex_150599.htm

Exhibit 32.2

 

CERTIFICATION PURSUANT TO

18 U.S.C. 1350

(SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002)

 

I, Steven W. Tholen, Chief Financial Officer of Pure Acquisition Corp. (the “Company”), certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that, to my knowledge:

 

(1)       the Quarterly Report on Form 10-Q of the Company for the quarterly period ended June 30, 2019 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and

 

(2)       the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

This certificate is being furnished solely for the purposes of 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.

 

Date: July 26, 2019

/s/ Steven W. Tholen

Steven W. Tholen

Chief Financial Officer

(Principal Financial Officer)

 

EX-101.INS 6 pacq-20190630.xml XBRL INSTANCE DOCUMENT false --12-31 Q2 2019 2019-06-30 10-Q 0001726293 10350000 41400000 Yes true false Non-accelerated Filer Pure Acquisition Corp. false false pacq 4109 410854701 410858810 30000 26000 60000 26000 150000000 P1Y180D P1Y180D P30D 0.01 18 41400000 41400000 0.2 1437500 0 410858810 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-style: italic;">Emerging growth company</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">The Company is an "emerging growth company," as defined in Section <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div>(a) of the Securities Act of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1933,</div> as amended, (the "Securities Act"), as modified by the Jumpstart our Business Startups Act of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2012,</div> (the "JOBS Act"), and it <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>take advantage of certain exemptions from various reporting requirements applicable to other public companies that are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> emerging growth companies including, but <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> limited to, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> being required to comply with the auditor attestation requirements of Section <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">404</div> of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> previously approved.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">Further, Section <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">102</div>(b)(<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div>) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> had a Securities Act registration statement declared effective or do <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> to opt out of such extended transition period which means when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>make comparison of the Company's financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.</div></div></div></div></div></div></div></div></div></div> 12 28959 71000 86927 71000 202712 42926 36311 144089 36761 414000000 2592502 5027471 P180D 50000 5000001 5000001 P1Y 10000 1 3 40000 120000 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-style: italic;">Offering Costs</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">The Company complies with the requirements of FASB ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">340</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">S99</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> and SEC Staff Accounting Bulletin (&#x201c;SAB&#x201d;) Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5A</div> &#x2013; &#x201c;Expenses of<div style="display: inline; font-style: italic;"> </div>Offering&#x201d;. Offering costs of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$9,506,582</div> consisting principally of underwriting discounts of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$8,280,000</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,226,582</div> of professional, printing, filing, regulatory and other costs incurred through the date of the financial statements directly related to the preparation of the Public Offering were charged to stockholders' equity upon completion of the Public Offering (See Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div>).</div></div></div></div></div></div></div></div></div></div> P1Y180D P1Y180D 10000 120000 1192422 34160 0.5 1 1 50000 1407712 1226582 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-weight: bold;">Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div> - Public Offering and Private Placement </div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-style: italic;">Public Offering</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 17, 2018, </div>the Company sold <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">41,400,000</div> Units in its initial Public Offering, including <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,400,000</div> Units sold to cover over-allotments, at a price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$10.00</div> per Unit resulting in gross proceeds of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$414,000,000.</div> Each Unit consists of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> share of the Company's Class A common stock and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div>-half of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> warrant, each whole warrant entitles the holder to purchase <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> share of Class A common stock at a price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$11.50</div> per share, subject to adjustment ("Warrant"). <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No</div> fractional Warrants will be issued upon separation of the Units and only whole Warrants will trade. Each Warrant will become exercisable on the later of (i) <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">30</div> days after the completion of the initial Business Combination and (ii) <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12</div> months from the closing of the Public Offering, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 17, 2018, </div>and will expire <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">five</div> years after the completion of the initial Business Combination or earlier upon redemption or liquidation.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">The Company <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>redeem the Warrants, in whole and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> in part, at a price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.0l</div> per Warrant upon <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">30</div> days' notice (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">"30</div>-day redemption period"), only in the event the last sales price of the Class A common stock equals or exceeds <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$18.00</div> per share for any <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">20</div> trading days within a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">30</div>-trading day period ending on the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">third</div> trading day prior to the date on which notice of redemption is given, provided there is an effective registration statement with respect to the shares of Class A common stock underlying such Warrants and a current prospectus relating to those shares of Class A common stock is available throughout the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">30</div>-day redemption period. If the Company calls the Warrants for redemption as described above, the Company's management will have the option to require all holders that wish to exercise Warrants to do so on a "cashless basis." In determining whether to require all holders to exercise their Warrants on a "cashless basis," the management will consider, among other factors, the Company's cash position, the number of Warrants outstanding and the dilutive effect on the Company's stockholders of issuing the maximum number of shares of Class A common stock issuable upon the exercise of the Warrants.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">The Sponsor has committed to offer or cause an affiliate to offer to purchase, at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.00</div> per Warrant (exclusive of commissions), the outstanding Warrants in a tender offer that would commence after our announcement of an initial Business Combination and occur in connection with such Business Combination. The warrant tender offer would <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> be conditioned upon any minimum number of Warrants being tendered. The Sponsor also committed to offer or cause an affiliate to offer to purchase, at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.00</div> per Warrant (exclusive of commissions), the outstanding Warrants in a tender offer that would commence after our filing of a proxy statement or information statement with respect to a proposed amendment to our amended and restated certificate of incorporation that would affect the substance of timing of our obligation to redeem <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">100%</div> of our public shares if we do <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> complete a Business Combination within <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">18</div> months from the consummation of our Public Offering. Any such purchases would occur in connection with the effectiveness of such amendment.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">There will be <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> redemption rights or liquidating distributions with respect to the Warrants, which will expire worthless if we fail to complete our Business Combination within the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">18</div>-month time period. The Company paid an underwriting discount of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.0%</div> of the per Unit offering price to the underwriters at the closing of the Public Offering.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:9pt;margin-right:7.2pt;margin-top:0pt;text-align:left;"><div style="display: inline; font-style: italic;">Private Placement</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:0pt;margin-right:7.2pt;margin-top:0pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">The Sponsor purchased from the Company an aggregate of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,280,000</div> private placement warrants at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.00</div></div> per private placement warrant (for a total purchase price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$10,280,000</div>) in a private placement that occurred simultaneously with the consummation of the offering.</div></div> 0.035 1 1 1 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-style: italic;">Redeemable Common Stock</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">As discussed in Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,</div> all of the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">41,400,000</div> Public Shares contain a redemption feature which allows for the redemption of Class A Common Stock under the Company&#x2019;s liquidation or tender offer/stockholder approval provisions. In accordance with FASB ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">480,</div> redemption provisions <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> solely within the control of the Company require the security to be classified outside of permanent equity. Ordinary liquidation events, which involve the redemption and liquidation of all of the entity&#x2019;s equity instruments, are excluded from the provisions of FASB ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">480.</div> Although the Company has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> specified a maximum redemption threshold, its amended and restated certificate of incorporation provides that in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> event will the Company redeem its Public Shares in an amount that would cause its net tangible assets to be less than <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$5,000,001.</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">The Company recognizes changes in redemption value immediately as they occur and will adjust the carrying value of the security at the end of each reporting period. Increases or decreases in the carrying number of redeemable shares of Class A Common Stock shall be affected by charges against additional paid-in capital.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">Accordingly, at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2019, </div>the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">41,400,000</div> shares of Class A Common Stock were classified outside of permanent equity at approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$10.00</div> per share.</div></div></div></div></div></div></div></div></div></div> 10 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-style: italic;">Related Parties </div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">The Company follows subtopic ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">850</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div> for the identification of related parties and disclosure of related party transactions.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">Pursuant to Section <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">850</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">20,</div> the related parties include: (a) affiliates of the Company (&#x201c;Affiliate&#x201d; means, with respect to any specified person, any other person that, directly or indirectly through <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> or more intermediaries, controls, is controlled by or is under common control with such person, as such terms are used in and construed under Rule <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">405</div> under the Securities Act); (b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">825</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> to be accounted for by the equity method by the investing entity; (c) trusts for the benefit of employees, such as pension and profit-sharing thrust that are managed by or under the trusteeship of management; (d) principal owners of the Company; (e) management of the Company; (f) other parties with which the Company <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>deal if <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> party controls or can significantly influence the management or operating policies of the other to an extent that <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> of the transacting parties might be prevented from fully pursuing its own separate interests; and (g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> of the transacting parties and can significantly influence the other to an extent that <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> or more of the transacting parties might be prevented from fully pursuing its own separate interests.</div></div></div></div></div></div></div></div></div></div> 0.02 41400000 5400000 1 45113 39867 114387 357759 797383 797383 9506582 9506582 10280000 10280000 20700000 10280000 422926249 419465434 578974 737917 422347275 418727517 422347275 418727517 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-style: italic;">Basis of Presentation</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">The accompanying unaudited interim condensed financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and pursuant to the accounting and disclosure rules and regulations of the SEC, and reflect all adjustments, consisting only of normal recurring adjustments, which are, in the opinion of management, necessary for a fair presentation of the financial position as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2019 </div>and the results of operations and cash flows for the period presented. Certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to such rules and regulations. Interim results are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> necessarily indicative of results for a full year.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">The accompanying unaudited interim condensed financial statements should be read in conjunction with the audited financial statements and notes thereto included in the final prospectus filed by the Company with the SEC on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 16, 2018 </div>and with the Company&#x2019;s Annual Report on Form <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div>-K filed with the SEC on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February 8, 2019.</div></div></div></div></div></div></div></div></div></div></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-weight: bold;">Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> - Description of Organization and Business Operations</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-weight: bold;">&nbsp;</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">Pure Acquisition Corp. (the "Company'', "we", "us" or "our") was incorporated in Delaware on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 13, 2017 </div>as a blank check company for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, recapitalization, reorganization or other similar business combination with <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> or more businesses or entities (a "Business Combination"). We intend to focus our search for target businesses in the energy industry with an emphasis on opportunities in the upstream oil and gas industry in North America.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">At <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2019, </div>the Company had <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> yet commenced operations. All activity from <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 13, 2017 (</div>inception) through <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2019 </div>relates to the Company's formation and the public offering described below. The Company will <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> generate any operating revenues until after completion of its Business Combination, at the earliest. The Company will generate non-operating income in the form of interest income on cash and cash equivalents from the proceeds derived from the public offering. The Company has selected <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31 </div>as its fiscal year-end. The Company is an early stage and emerging growth company and, as such, the Company is subject to all of the risks associated with early stage and emerging growth companies.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 17, 2018 (</div>the &#x201c;IPO Closing Date&#x201d;), the Company consummated its initial public offering (&#x201c;Public Offering&#x201d;) of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">41,400,000</div> units, representing a complete exercise of the over-allotment option, at a purchase price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$10.00</div> per unit as discussed in Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3.</div> Each unit consists of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> share of Class A common stock and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> half of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> warrant (a "Unit"). Each whole warrant entitles the holder to purchase <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> share of Class A common stock at a price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$11.50.</div> Each warrant will become exercisable on the later of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">30</div> days after the completion of an initial Business Combination or <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12</div> months from the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 17, 2018 </div>close of the Company&#x2019;s offering and will expire on the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">fifth</div> anniversary of our completion of an initial Business Combination, or earlier upon redemption or liquidation.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 17, 2018, </div>HighPeak Pure Acquisition, LLC ("HighPeak" and the "Sponsor") purchased from us an aggregate of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,280,000</div> private placement warrants at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.00</div> per private placement warrant (for a total purchase price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$10,280,000</div>) in a private placement that occurred simultaneously with the consummation of the Public Offering.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">The Company intends to finance its initial Business Combination with proceeds from the Public Offering and the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$10,280,000</div> private placement (Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div>). Upon the closing of the Public Offering and the private placement, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$414,000,000</div> was placed in a trust account (&#x201c;Trust Account&#x201d;). The proceeds held in the Trust Account will be invested only in U.S. government treasury bills with a maturity of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one hundred eighty</div> (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">180</div>) days or less or in money market funds that meet certain conditions under Rule <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2a</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7</div> under the Investment Act of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1940</div> and invest only in direct U.S. government obligations.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">The Company's management has broad discretion with respect to the specific application of the net proceeds of the Public Offering although substantially all of the net proceeds are intended to be applied generally toward consummating a Business Combination. There is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> assurance the Company will be able to complete a Business Combination successfully. Management placed <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$10.00</div> per Unit sold in the Public Offering into the Trust Account to be held until the earlier of (i) the consummation of its initial Business Combination or (ii) the Company's failure to consummate a Business Combination within <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">18</div> months from the consummation of the Public Offering. Placing funds in the Trust Account <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> protect those funds from <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">third</div> party claims against the Company. Although the Company will use its reasonable best efforts to have all vendors, service providers, prospective target businesses or other entities it engages, execute agreements with the Company waiving any claim of any kind in or to any monies held in the Trust Account, there is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> guarantee such persons will execute such agreements. Additionally, the interest earned on the Trust Account balance <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be released to the Company for any amounts necessary to pay (i) the Company's income and other tax obligations, (ii) payment of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$10,000</div> per month to our Sponsor or <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> of its affiliates, for up to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">18</div> months, for office space, utilities and secretarial and administrative support commencing on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 13, 2018, </div>the date of listing of the Company's securities on the NASDAQ, and (iii) the Company's liquidation expenses if the Company is unable to consummate a Business Combination within the required time period (up to a maximum of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$50,000</div>).</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">Cash proceeds from the Public Offering and the private placement remaining outside the Trust Account are available to pay prospective acquisition business, technical, legal and accounting due diligence, continuing general and administrative expenses and for working capital purposes. To meet additional working capital needs, the Company's Sponsor or its affiliates <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may, </div>but are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> obligated to, loan the Company funds as <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be required. The loans would either be paid upon consummation of the Company's initial Business Combination, or, at the lender's discretion, up to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,500,000</div> of such loans <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be converted upon consummation of the Company's Business Combination into private placement warrants at a price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.00</div> per private placement warrant. If the Company does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> complete a Business Combination, the loans would be repaid only out of funds held outside of the Trust Account.&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:center;"></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin: 0pt; text-align: left">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-style: italic;">Initial Business Combination</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">Pursuant to the NASDAQ Capital Markets listing rules, the Company's initial Business Combination must be with a target business or businesses whose collective fair market value is at least equal to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">80%</div> of the balance in the Trust Account, net of taxes payable, at the time of the execution of a definitive agreement for such Business Combination, although this <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>entail simultaneous acquisitions of several target businesses. The fair market value of the target will be determined by the Company's board of directors based upon <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> or more standards generally accepted by the financial community (such as actual and potential sales, earnings, cash flow, proved oil and gas reserves, oil and gas production, oil and gas lease acreage and/or book value). The target business or businesses the Company acquires <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>have a collective fair market value substantially in excess of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">80%</div> of the Trust Account balance. To consummate such a Business Combination, the Company <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>issue a significant amount of its debt or equity securities to the sellers of such business and/or seek to raise additional funds through a private offering of debt or equity securities. If the Company's securities are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> listed on NASDAQ at the time of the initial Business Combination, the Company would <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> be required to satisfy the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">80%</div> requirement. However, the Company intends to satisfy the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">80%</div> requirement even if the Company's securities are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> listed on NASDAQ at the time of the initial Business Combination.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">The Company will provide the public stockholders, who are the holders of the Class A common stock ("Public Shares") sold as part of the Units in the Public Offering, whether purchased in the Public Offering or in the aftermarket and the Company's stockholders prior to the Public Offering (including the Sponsor) (the "Initial Stockholders") to the extent they purchase such Public Shares ("Public Stockholders"), with an opportunity to redeem all or a portion of their Public Shares of the Company's Class A common stock, irrespective of whether they vote for or against the proposed transaction or if the Company conducts a tender offer, upon the completion of the initial Business Combination either (i) in connection with a stockholder meeting called to approve the Business Combination, or (ii) by means of a tender offer, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account including interest, net of taxes payable, divided by the number of the then outstanding shares of Class A common stock. The Class A common stock subject to redemption will be recorded at redemption value and classified as temporary equity, in accordance with Accounting Standards Codification ("ASC") Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">480</div> "Distinguishing Liabilities from Equity". The Company will proceed with a Business Combination only if the Company has net tangible assets of at least <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$5,000,001</div> upon such consummation of a Business Combination and in the case of a stockholder vote, a majority of the outstanding shares voted are voted in favor of the Business Combination. The decision as to whether the Company will seek stockholder approval of a proposed Business Combination or conduct a tender offer will be made by the Company, solely in its discretion, based on a variety of factors such as the timing of the transaction and whether the terms of the transaction would otherwise require it to seek stockholder approval under the law or stock exchange listing requirement. If a stockholder vote is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> required and the Company decides <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> to hold a stockholder vote for business or other legal reasons, the Company will, pursuant to the proposed amended and restated certificate of incorporation, (i) conduct the redemptions pursuant to Rule <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">13e</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4</div> and Regulation <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">14E</div> of the Exchange Act, which regulate issuer tender offers, and (ii) file tender offer documents with the Securities and Exchange Commission (&#x201c;SEC&#x201d;) prior to completing the initial Business Combination which contain substantially the same financial and other information about the initial Business Combination and the redemption rights as is required under Regulation <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">14A</div> of the Exchange Act, which regulates the solicitation of proxies.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">The Initial Stockholders will agree to vote their founders' shares (as described in Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6</div>) and any Public Shares purchased during or after the Public Offering in favor of the initial Business Combination, and the Company's executive officers, directors and director nominees have also agreed to vote any Public Shares purchased after the Public Offering in favor of the initial Business Combination. The Initial Stockholders entered into a letter agreement, pursuant to which they agreed to waive their redemption rights with respect to the initial Business Combination as to their founders' shares as well as any Public Shares purchased by the Initial Stockholders. In addition, the Initial Stockholders also agreed to waive their rights to liquidating distributions from the Trust Account with respect to the founders' shares if the Company fails to complete the initial Business Combination within the prescribed time frame. However, if the Initial Stockholders (or any of the Company's executive officers, directors or affiliates) acquire Public Shares after the Public Offering, they will be entitled to liquidating distributions from the Trust Account with respect to such Public Shares in the event the Company does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> complete the initial Business Combination within such applicable time period.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-style: italic;">Going Concern and Failure to Consummate a Business Combination</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">The Company has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">18</div> months from the consummation of its Public Offering (until the close of business on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> October 16, 2019) </div>to complete its initial Business Combination. If the Company is unable to complete the initial Business Combination within <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">18</div> months from the consummation of the Public Offering, the Company must: (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> more than <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">ten</div> business days thereafter, redeem the Public Shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest (which interest shall be net of taxes payable and up to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$50,000</div> for dissolution expenses) divided by the number of then outstanding Public Shares, which redemption will completely extinguish public stockholders' rights as stockholders (including the right to receive further liquidation distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the Company's remaining stockholders and the Company's Board of Directors, dissolve and liquidate, subject in the case of clauses (ii) and (iii) to the Company's obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin: 0pt; text-align: left">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">This mandatory liquidation and subsequent dissolution of the Company if an initial Business Combination is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> completed by the close of business on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> October 16, 2019 </div>raises substantial doubt about the Company&#x2019;s ability to continue as a going concern.&nbsp; <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No</div> adjustments have been made to the carrying amounts of assets or liabilities should the Company be required to liquidate after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> October 16, 2019.&nbsp;</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">In the event of such liquidation, it is possible the per share value of the residual assets remaining available for distribution (including the Trust Account assets) will be less than the offering price per Unit in the Public Offering.&nbsp; Based on the value of the Trust Account at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2019, </div>the redemption value, after payment of accrued income taxes and other expenses, is greater than <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$10.00</div> per share.</div></div> 578974 734894 734894 25000 578974 760175 -155920 735175 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-style: italic;">Cash and cash equivalents</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">The Company considers all short-term investments with an original maturity of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months or less when purchased to be cash equivalents. The Company did <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> </div>have any cash equivalents as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2019 </div>or <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2018.&nbsp;</div></div></div></div></div></div></div></div></div></div></div> 0 0 1 11.50 1 1 11.50 1 1 1 11.50 10 1 10280000 10280000 10280000 10280000 10280000 7500000 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-weight: bold;">Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5</div> - Commitments and Contingencies</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-style: italic;">Business Combination Marketing Agreement</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">The Company engaged the underwriters from our Public Offering as advisors in connection with any potential Business Combination to assist us in holding meetings with our stockholders to discuss the potential Business Combination and the target business' attributes, introduce us to potential investors interested in purchasing our securities, assist us in obtaining stockholder approval for the Business Combination and assist us with our press releases and public filings in connection with the Business Combination. The Company will pay Oppenheimer &amp; Co. Inc. and EarlyBirdCapital a cash fee equal to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3.5%</div> of the gross proceeds of the Public Offering (exclusive of any applicable finders&#x2019; fees which might become payable) for such services upon the consummation of our initial Business Combination. As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2019, </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2018, </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">none</div> of the above services had been performed and accordingly, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> amounts have been recorded in the accompanying financial statements.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-style: italic;">Registration Rights</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">The holders of our Founders' Shares issued and outstanding and any private placement warrants issued to our Sponsor, officers, directors or their affiliates, including private placement warrants issued in payment of working capital loans made to us (and all underlying securities), will be entitled to registration rights pursuant to an agreement signed <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 12, 2018. </div>The holders of a majority of these securities are entitled to make up to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> demands that we register such securities. The holders of the majority of the Founders' Shares can elect to exercise these registration rights at any time commencing <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months prior to the date on which these shares of Class B common stock are to be released from escrow. The holders of a majority of the private placement warrants issued to our Sponsor, officers, directors or their affiliates in payment of working capital loans made to us (or underlying securities) can elect to exercise these registration rights at any time after we consummate a Business Combination. In addition, the holders have certain "piggy-back" registration rights with respect to registration statements filed subsequent to our consummation of a Business Combination. The Company will bear the expenses incurred in connection with the filing of any such registration statements.</div></div> 0.0001 0.0001 0.0001 0.0001 200000000 200000000 15000000 15000000 0 0 10350000 10350000 0 0 10350000 10350000 10350000 10350000 10350000 10350000 10350000 10350000 314119 10350000 1035 1035 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-style: italic;">Concentration of credit risk</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">Financial instruments that potentially subject the Company to concentration of credit risk consist of a cash account in a financial institution which, at times <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>exceed the Federal depository insurance coverage of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$250,000.</div> At <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2019, </div>the Company had <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> experienced losses on this account and management believes the Company is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> exposed to significant risks on such account.</div></div></div></div></div></div></div></div></div></div> 1500000 1500000 0.05 0.03 0.09 0.03 0 0 -0.01 0 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-style: italic;">Net Income (Loss) Per Common Share</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">Net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. The Company has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> considered the effect of the warrants sold in the Public Offering (including the over-allotment) and private placement warrants to purchase <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">20,700,000</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,280,000</div> shares of the Company&#x2019;s Class A common stock, respectively, in the calculation of diluted income per share, since their inclusion would be anti-dilutive.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">The Company&#x2019;s statement of operations includes a presentation of net income per share for common shares subject to redemption in a manner similar to the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">two</div>-class method of net income (loss) per share. Net income (loss) per common share for basic and diluted for Class A common stock is calculated by dividing the interest income earned on the Trust Account, net of applicable administrative fees, franchise taxes and income taxes, by the weighted average number of Class A common stock since issuance. Net loss per common share for basic and diluted for Class B common stock is calculated by dividing the net loss, which excludes income attributable to Class A common stock, by the weighted average number of Class B common stock outstanding for the period.&nbsp;</div></div></div></div></div></div></div></div></div></div> 0.2 20700000 <div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="10" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">June 30, 2019</div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="10" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">December 31, 2018</div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 28%; border-bottom: thin solid rgb(0, 0, 0);"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><div style="display: inline; font-weight: bold;">Description</div></div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Level 1</div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Level 2</div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Level 3</div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Level 1</div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Level 2</div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Level 3</div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Cash and Investments held in Trust Account</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">422,347,275</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">418,727,517</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> </table></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-weight: bold;">Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7</div> &#x2013; Fair Value Measurements</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">The following table presents information about the Company&#x2019;s assets, measured on a recurring basis, as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2019 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2018. </div>The table indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. In general, fair values determined by Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities. Fair values determined by Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div> inputs utilize data points that are observable, such as quoted prices, interest rates and yield curves. Fair values determined by Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div> inputs are unobservable data points for the asset or liability, and includes situations where there is little, if any, market activity for the asset or liability.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div> <table border="0" cellpadding="0" cellspacing="0" style="; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="10" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">June 30, 2019</div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="10" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">December 31, 2018</div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 28%; border-bottom: thin solid rgb(0, 0, 0);"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><div style="display: inline; font-weight: bold;">Description</div></div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Level 1</div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Level 2</div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Level 3</div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Level 1</div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Level 2</div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Level 3</div></div></div> </td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Cash and Investments held in Trust Account</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">422,347,275</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">418,727,517</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> </table> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-style: italic;">Fair value of financial instruments</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">The fair value of the Company's assets and liabilities, which qualify as financial instruments under ASC Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">820,</div> "Fair Value Measurements and Disclosures", approximates the carrying amounts represented in the accompanying balance sheets, primarily due to their short-term nature.</div></div></div></div></div></div></div></div></div></div> 2490617 1350729 4736455 1350279 536681 284000 1037514 284000 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-style: italic;">Income taxes</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">The Company follows the asset and liability method for accounting for income taxes under FASB ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">740</div> - "Income Taxes." Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that included the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">FASB ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">740</div> prescribes a recognition threshold and a measurement attribute for financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> </div>unrecognized tax benefits and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> </div>amounts accrued for interest and penalties as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2019 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2018. </div>The Company is currently <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception. &nbsp;</div></div></div></div></div></div></div></div></div></div> 2135000 1165000 -243371 355000 5246 39682 -3023 15164 5027471 1484040 2592502 1484040 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-style: italic;">Cash and Marketable Securities held in the Trust Account</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">The amounts held in the Trust Account represent proceeds from the Public Offering and the private placement of private placement warrants of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$414,000,000</div> which were invested in permitted United States &#x201c;government securities&#x201d; within the meaning of Section <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div>(a)(<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">16</div>) of the Investment Company Act of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1940,</div> as amended (the &#x201c;Investment Company Act&#x201d;), having a maturity of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">180</div> days or less, or in money market funds meeting certain conditions under Rule <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2a</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7</div> under the Investment Company Act (&#x201c;Permitted Investments&#x201d;) and are classified as restricted assets because such amounts can only be used by the Company in connection with the consummation of an initial Business Combination.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2019, </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2018, </div>cash and Permitted Investments held in the Trust Account had a fair value of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$422,347,275</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$418,727,517,</div> respectively. For the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2019, </div>investments held in the Trust Account generated interest income of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2,592,502</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$5,027,471,</div> respectively. From the IPO Closing Date through <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2019, </div>the Company paid <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2,135,000</div> to the IRS, with funds received from the Trust Account, for estimated federal income taxes. From the IPO Closing Date through <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2019, </div>the Company paid <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$120,000</div> to an affiliate of our Sponsor, with funds received from the Trust Account, for administrative services.</div></div></div></div></div></div></div></div></div></div> 422926249 419465434 159500 397626 414773418 1407712 -414000000 -1563632 -38243 3698941 1066279 1953936 1066729 1745005 1745005 1953936 -450 -450 1066729 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-style: italic;">Recent Accounting Pronouncements</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">The Company has evaluated recently issued, but <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> yet effective, accounting pronouncements and does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> believe they would have a material effect on the Company's financial statements.</div></div></div></div></div></div></div></div></div></div> 200000 101885 133311 291016 133761 -101885 -133311 -291016 -133761 422347275 418727517 8280000 8280000 9506582 414000000 0.0001 0.0001 1000000 1000000 0 0 0 0 3023 414000000 414000000 10280000 10280000 10280000 200000 200000 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-weight: bold;">Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4</div> - Related Party Transactions </div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-style: italic;">Founders&#x2019; Shares</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">In connection with the organization of the Company, a total of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,062,500</div> shares of Class B common stock were sold to the Sponsor at a price of approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.002</div> per share for an aggregate of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$25,000</div> ("Founders' Shares"). In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 2018, </div>our Sponsor returned to us, at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> cost, an aggregate of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,437,500</div> Founders&#x2019; Shares, which we cancelled, leaving an aggregate of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8,625,000</div> Founders&#x2019; Shares outstanding. In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 2018, </div>our Sponsor transferred <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">40,000</div> Founders&#x2019; Shares to each of its <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> independent director nominees resulting in a total of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">120,000</div> Founders&#x2019; Shares transferred to our independent director nominees. In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 2018, </div>we effected a stock dividend of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.2</div> shares of Class B common stock for each outstanding share of Class B common stock, resulting in our Sponsor and independent director nominees holding an aggregate of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,350,000</div> Founders&#x2019; Shares. The Sponsor would have been required to forfeit only a number of shares of Class B common stock necessary to continue to maintain the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">20.0%</div> ownership interest in our shares of common stock after giving effect to the offering and exercise, if any, of the underwriters' over-allotment option. As a result of the full exercise of the underwriters' over-allotment option, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> shares were forfeited.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">Subject to certain limited exceptions, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">50%</div> of the Founders' Shares will <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> be transferred, assigned, sold until the earlier of: (i) <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> year after the date of the consummation of the initial Business Combination or (ii) the date on which the closing price of the Company's Class A common stock equals or exceeds <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$12.00</div> per share (as adjusted) for any <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">20</div> trading days within any <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">30</div>-trading day period commencing after the initial Business Combination, and the remaining <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">50%</div> of the Founders' Shares will <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> be transferred, assigned, sold until <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> year after the date of the consummation of the initial Business Combination, or earlier, in either case, if, subsequent to the Company's initial Business Combination, the Company consummates a subsequent liquidation, merger, stock exchange, reorganization or other similar transaction which results in all stockholders having the right to exchange their common stock for cash, securities or other property.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin: 0pt; text-align: left"></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-style: italic;">Related Party Loans</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">The Sponsor loaned the Company an aggregate of up to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$200,000</div> to cover expenses related to the Company's formation and the Public Offering. The note was executed on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 16, 2017 </div>and the Company requested and received <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$200,000</div> in funds on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 5, 2018. </div>The Company repaid the note on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 17, 2018 </div>in full without interest.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">We do <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> believe we will need to raise additional funds following the offering to meet the expenditures required for operating our business. However, to finance transaction costs in connection with an intended initial Business Combination, our Sponsor, officers, directors or their affiliates <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may, </div>but are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> obligated to, loan us funds as <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be required. If we consummate an initial Business Combination, we would repay such loaned amounts. In the event the initial Business Combination does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> close, we <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>use a portion of the working capital held outside the Trust Account to repay such loaned amounts, but <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> proceeds from our Trust Account would be used for such repayment. Up to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,500,000</div> of such loans <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be convertible into private placement warrants of the post Business Combination entity at a price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.00</div> per private placement warrant at the option of the lender.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-style: italic;">Administrative Service Agreement</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">Commencing on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 13, 2018, </div>the date of the listing of our securities on the NASDAQ, through the earlier of our consummation of our initial Business Combination or our liquidation, we have agreed to pay our Sponsor or <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> of its affiliates <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$10,000</div> per month for up to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">18</div> months to entice our Sponsor to make available to us certain general and administrative services, including office space, utilities and administrative support, as we <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>require from time to time. The Company incurred administrative expenses of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$30,000</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$26,000</div> for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div>-month periods ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2019 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018, </div>respectively. For the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div>-month periods ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2019 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018, </div>the Company incurred <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$60,000</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$26,000</div> for administrative services, respectively. From the IPO Closing Date through <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2019, </div>the Company paid <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$120,000</div> to an affiliate of our Sponsor, with funds received from the Trust Account, for administrative services. Upon completion of the initial Business Combination or our liquidation, we will cease paying these monthly fees.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-style: italic;">Private Placement</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">As discussed in Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,</div> the Sponsor purchased an aggregate of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,280,000</div> private placement warrants at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.00</div></div> per private placement warrant (for a total purchase price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$10,280,000</div></div>) from us simultaneous with the closing of the Public Offering. Each whole private placement warrant is exercisable for <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> whole share of the Company&#x2019;s Class A Common Stock at a price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$11.50</div> per share. A portion of the purchase price of the private placement warrants was added to the proceeds from the Public Offering held in the Trust Account. If the initial Business Combination is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> completed within <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">18</div> months from the closing of the Public Offering, the proceeds from the sale of the private placement warrants held in the Trust Account will be used to fund the redemption of the Public Shares (subject to the requirements of applicable law) and the private placement warrants will expire worthless. The private placement warrants will be non-redeemable and exercisable on a cashless basis so long as they are held by the Sponsor or its permitted transferees.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">The Sponsor and the Company&#x2019;s officers and directors agreed, subject to limited exceptions, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> to transfer, assign or sell any of their private placement warrants until <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">30</div> days after the completion of the initial Business Combination.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-style: italic;">Forward Purchase Agreement</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 2018, </div>HighPeak Energy Partners, LP ("HighPeak LP") entered into a forward purchase agreement with us that provides for the purchase by HighPeak LP of an aggregate of up to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,000,000</div> shares of our Class A common stock and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7,500,000</div> warrants for <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$10.00</div> per forward unit, for an aggregate purchase price of up to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$150,000,000</div> in a private placement that will close simultaneously with the closing of our initial Business Combination. HighPeak LP is a limited partnership affiliated with our Sponsor. The forward purchase warrants will have the same terms as the private placement warrants so long as they are held by HighPeak LP, its affiliates or its permitted transferees, and the forward purchase shares are identical to the shares of Class A common stock included in the Units sold in the Public Offering, except the forward purchase shares are subject to transfer restrictions and certain registration rights, as described in the forward purchase agreement. HighPeak LP's commitment under the forward purchase agreement <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be reduced under certain circumstances as described in the agreement.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-style: italic;">Warrant Tender Offer</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">Our Sponsor has committed to offer or cause an affiliate to offer to purchase, at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.00</div> per public warrant (exclusive of commissions), the outstanding public warrants in a tender offer that would commence after our announcement of an initial Business Combination and occur in connection with such Business Combination. The warrant tender offer would <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> be conditioned upon any minimum number of warrants being tendered.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin: 0pt; text-align: left"></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">Our Sponsor has also committed to offer or cause an affiliate to offer to purchase, at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.00</div> per public warrant (exclusive of commissions), the outstanding public warrants in a tender offer that would commence after our filing of a proxy statement or information statement with respect to a proposed amendment to our amended and restated certificate of incorporation that would affect the substance of timing of our obligation to redeem <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">100%</div> of our public shares if we do <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> complete a Business Combination within <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">18</div> months from the closing of the Public Offering. Any such purchases would occur in connection with the effectiveness of such amendment.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 2018, </div>an affiliate of our Sponsor deposited cash funds in an amount equal to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$20,700,000</div> with Continental Stock Transfer &amp; Trust Company prior to the closing of the Public Offering. The funds held in the escrow account <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be used (or the letter of credit referred to below <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be drawn upon) to pay <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.00</div> per whole warrant to holders of public warrants (excluding private placement warrants or forward purchase warrants) that tender in the tender offer for the public warrants. At any time, our Sponsor or its affiliate <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>substitute a letter of credit from a financially capable bank in good standing in lieu of cash or cash in lieu of a letter of credit. Neither funds in the escrow account nor the letter of credit shall be held in trust nor comprise any portion of any pro-rata distribution of our Trust Account. In the event a Business Combination is announced and a tender offer for the warrants is made, but the Business Combination is later abandoned, the tender offer will <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> be closed, and the warrants will be returned to the holders.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">In the event we are unable to close a Business Combination within the allotted time, the escrow agent will be authorized to transfer <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.00</div> per whole public warrant, to holders of public warrants other than our sponsor and its affiliates, at the same time as we redeem our public shares, and all warrants will expire worthless.</div></div> 200000 7968331 4269390 10 10 0.002 8625000 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-weight: bold;">Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div> - Significant Accounting Policies</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-style: italic;">Basis of Presentation</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">The accompanying unaudited interim condensed financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and pursuant to the accounting and disclosure rules and regulations of the SEC, and reflect all adjustments, consisting only of normal recurring adjustments, which are, in the opinion of management, necessary for a fair presentation of the financial position as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2019 </div>and the results of operations and cash flows for the period presented. Certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to such rules and regulations. Interim results are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> necessarily indicative of results for a full year.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">The accompanying unaudited interim condensed financial statements should be read in conjunction with the audited financial statements and notes thereto included in the final prospectus filed by the Company with the SEC on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 16, 2018 </div>and with the Company&#x2019;s Annual Report on Form <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div>-K filed with the SEC on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February 8, 2019.</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-style: italic;">Emerging growth company</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">The Company is an "emerging growth company," as defined in Section <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div>(a) of the Securities Act of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1933,</div> as amended, (the "Securities Act"), as modified by the Jumpstart our Business Startups Act of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2012,</div> (the "JOBS Act"), and it <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>take advantage of certain exemptions from various reporting requirements applicable to other public companies that are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> emerging growth companies including, but <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> limited to, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> being required to comply with the auditor attestation requirements of Section <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">404</div> of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> previously approved.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">Further, Section <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">102</div>(b)(<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div>) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> had a Securities Act registration statement declared effective or do <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> to opt out of such extended transition period which means when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>make comparison of the Company's financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-style: italic;">Net Income (Loss) Per Common Share</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">Net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. The Company has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> considered the effect of the warrants sold in the Public Offering (including the over-allotment) and private placement warrants to purchase <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">20,700,000</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,280,000</div> shares of the Company&#x2019;s Class A common stock, respectively, in the calculation of diluted income per share, since their inclusion would be anti-dilutive.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">The Company&#x2019;s statement of operations includes a presentation of net income per share for common shares subject to redemption in a manner similar to the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">two</div>-class method of net income (loss) per share. Net income (loss) per common share for basic and diluted for Class A common stock is calculated by dividing the interest income earned on the Trust Account, net of applicable administrative fees, franchise taxes and income taxes, by the weighted average number of Class A common stock since issuance. Net loss per common share for basic and diluted for Class B common stock is calculated by dividing the net loss, which excludes income attributable to Class A common stock, by the weighted average number of Class B common stock outstanding for the period.&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin: 0pt; text-align: left">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-style: italic;">Cash and cash equivalents</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">The Company considers all short-term investments with an original maturity of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months or less when purchased to be cash equivalents. The Company did <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> have any cash equivalents as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2019 </div>or <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2018.&nbsp;</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-style: italic;">Cash and Marketable Securities held in the Trust Account</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">The amounts held in the Trust Account represent proceeds from the Public Offering and the private placement of private placement warrants of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$414,000,000</div> which were invested in permitted United States &#x201c;government securities&#x201d; within the meaning of Section <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div>(a)(<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">16</div>) of the Investment Company Act of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1940,</div> as amended (the &#x201c;Investment Company Act&#x201d;), having a maturity of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">180</div> days or less, or in money market funds meeting certain conditions under Rule <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2a</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7</div> under the Investment Company Act (&#x201c;Permitted Investments&#x201d;) and are classified as restricted assets because such amounts can only be used by the Company in connection with the consummation of an initial Business Combination.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2019, </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2018, </div>cash and Permitted Investments held in the Trust Account had a fair value of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$422,347,275</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$418,727,517,</div> respectively. For the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2019, </div>investments held in the Trust Account generated interest income of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2,592,502</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$5,027,471,</div> respectively. From the IPO Closing Date through <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2019, </div>the Company paid <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2,135,000</div> to the IRS, with funds received from the Trust Account, for estimated federal income taxes. From the IPO Closing Date through <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2019, </div>the Company paid <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$120,000</div> to an affiliate of our Sponsor, with funds received from the Trust Account, for administrative services.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-style: italic;">Redeemable Common Stock</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">As discussed in Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,</div> all of the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">41,400,000</div> Public Shares contain a redemption feature which allows for the redemption of Class A Common Stock under the Company&#x2019;s liquidation or tender offer/stockholder approval provisions. In accordance with FASB ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">480,</div> redemption provisions <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> solely within the control of the Company require the security to be classified outside of permanent equity. Ordinary liquidation events, which involve the redemption and liquidation of all of the entity&#x2019;s equity instruments, are excluded from the provisions of FASB ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">480.</div> Although the Company has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> specified a maximum redemption threshold, its amended and restated certificate of incorporation provides that in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> event will the Company redeem its Public Shares in an amount that would cause its net tangible assets to be less than <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$5,000,001.</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">The Company recognizes changes in redemption value immediately as they occur and will adjust the carrying value of the security at the end of each reporting period. Increases or decreases in the carrying number of redeemable shares of Class A Common Stock shall be affected by charges against additional paid-in capital.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">Accordingly, at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2019, </div>the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">41,400,000</div> shares of Class A Common Stock were classified outside of permanent equity at approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$10.00</div> per share.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-style: italic;">Concentration of credit risk</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">Financial instruments that potentially subject the Company to concentration of credit risk consist of a cash account in a financial institution which, at times <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>exceed the Federal depository insurance coverage of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$250,000.</div> At <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2019, </div>the Company had <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> experienced losses on this account and management believes the Company is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> exposed to significant risks on such account.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-style: italic;">Use of estimates</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-style: italic;">Fair value of financial instruments</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">The fair value of the Company's assets and liabilities, which qualify as financial instruments under ASC Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">820,</div> "Fair Value Measurements and Disclosures", approximates the carrying amounts represented in the accompanying balance sheets, primarily due to their short-term nature.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-style: italic;">Offering Costs</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">The Company complies with the requirements of FASB ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">340</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">S99</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> and SEC Staff Accounting Bulletin (&#x201c;SAB&#x201d;) Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5A</div> &#x2013; &#x201c;Expenses of<div style="display: inline; font-style: italic;"> </div>Offering&#x201d;. Offering costs of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$9,506,582</div> consisting principally of underwriting discounts of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$8,280,000</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,226,582</div> of professional, printing, filing, regulatory and other costs incurred through the date of the financial statements directly related to the preparation of the Public Offering were charged to stockholders' equity upon completion of the Public Offering (See Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div>).</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-style: italic;">Income taxes</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">The Company follows the asset and liability method for accounting for income taxes under FASB ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">740</div> - "Income Taxes." Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that included the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">FASB ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">740</div> prescribes a recognition threshold and a measurement attribute for financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> unrecognized tax benefits and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> amounts accrued for interest and penalties as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2019 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2018. </div>The Company is currently <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception. &nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-style: italic;">Related Parties </div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">The Company follows subtopic ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">850</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div> for the identification of related parties and disclosure of related party transactions.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">Pursuant to Section <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">850</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">20,</div> the related parties include: (a) affiliates of the Company (&#x201c;Affiliate&#x201d; means, with respect to any specified person, any other person that, directly or indirectly through <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> or more intermediaries, controls, is controlled by or is under common control with such person, as such terms are used in and construed under Rule <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">405</div> under the Securities Act); (b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">825</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> to be accounted for by the equity method by the investing entity; (c) trusts for the benefit of employees, such as pension and profit-sharing thrust that are managed by or under the trusteeship of management; (d) principal owners of the Company; (e) management of the Company; (f) other parties with which the Company <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>deal if <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> party controls or can significantly influence the management or operating policies of the other to an extent that <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> of the transacting parties might be prevented from fully pursuing its own separate interests; and (g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> of the transacting parties and can significantly influence the other to an extent that <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> or more of the transacting parties might be prevented from fully pursuing its own separate interests.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-style: italic;">Recent Accounting Pronouncements</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">The Company has evaluated recently issued, but <div style="display: inline; 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Any material events that occur between the balance sheet date and the date the financial statements were issued are disclosed as subsequent events, while the financial statements are adjusted to reflect any conditions that existed at the balance sheet date.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"></div></div> 41400000 41400000 10062500 15000000 41400000 0 25000 4140 413995860 414000000 41085881 8766749 5067808 1035 797383 4269390 1035 797383 6014395 6812813 1035 797383 7968331 1035 23965 -5881 19119 1035 23965 -6331 18669 31 1035 3938542 1060398 5000006 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-weight: bold;">Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6</div> - Stockholders' Equity</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-style: italic;">Preferred Stock</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">The Company is authorized to issue <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,000,000</div></div> shares of preferred stock with a par value of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.0001</div></div> per share with such designation, rights and preferences as <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be determined from time to time by the Company's board of directors. At <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2019 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2018,</div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"></div></div></div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div></div></div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"></div> </div>preferred stock is issued or outstanding.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-style: italic;">Class A Common Stock</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">The Company is authorized to issue up to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">200,000,000</div> shares of Class A Common Stock. If the Company enters into an initial Business Combination, it <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may (</div>depending on the terms of such initial Business Combination) be required to increase the number of shares of Class A Common Stock which the Company is authorized to issue at the same time as the Company&#x2019;s stockholders vote on the initial Business Combination to the extent the Company seeks stockholder approval in connection with the initial Business Combination. Holders of the Company&#x2019;s common stock are entitled to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> vote for each share of common stock held. At <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2019 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2018, </div>there were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">41,400,000</div> shares of Class A Common Stock, of which <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">41,400,000</div> were classified outside of permanent equity.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin: 0pt; text-align: left"></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-style: italic;">Class B Common Stock</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">The Company is authorized to issue up to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,000,000</div> shares of Class B Common Stock. At <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2019 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2018, </div>there were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,350,000</div></div></div></div> shares of Class B Common Stock issued and outstanding. See Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4</div> &#x2013; <div style="display: inline; font-style: italic;">Founders</div><div style="display: inline; font-style: italic;">&#x2019;</div><div style="display: inline; font-style: italic;"> Shares</div>. &nbsp;</div></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-style: italic;">Subsequent Events</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">The Company evaluates subsequent events and transactions that occur after the balance sheet date for potential recognition or disclosure. Any material events that occur between the balance sheet date and the date the financial statements were issued are disclosed as subsequent events, while the financial statements are adjusted to reflect any conditions that existed at the balance sheet date.</div></div></div></div></div></div></div></div></div></div> 414000000 414000000 10 10 41400000 41400000 0 0 0 0 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;"><div style="display: inline; font-style: italic;">Use of estimates</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. 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Preferred Stock, Shares Authorized Preferred stock, par value (in dollars per share) Preferred Stock, Par or Stated Value Per Share Fair Value, Inputs, Level 3 [Member] pacq_RedemptionValueAfterPaymentOfAccruedIncomeTaxesAndOtherExpenses Redemption Value, After Payment of Accrued Income Taxes and Other Expenses The amount of redemption value after payment of accrued income taxes and other expenses. Supplemental disclosure of financing activities: Fair Value Hierarchy and NAV [Domain] Fair Value, Inputs, Level 1 [Member] Fair Value, Inputs, Level 2 [Member] Fair Value Hierarchy and NAV [Axis] Current liabilities: Supplemental disclosure of investing activities: us-gaap_Assets TOTAL ASSETS CASH FLOWS FROM OPERATING ACTIVITIES: Statement [Line Items] Additional paid-in capital Stockholders' equity: Common stock subject to possible redemption, redemption value per share (in dollars per share) Temporary Equity, Redemption Price Per Share Business Description and Basis of Presentation [Text Block] us-gaap_EscrowDeposit Escrow Deposit Current assets: us-gaap_SaleOfStockPricePerShare Sale of Stock, Price Per Share Fair Value Disclosures [Text Block] Common stock subject to possible redemption outstanding (in shares) Net income (loss) Net income (loss) Net income (loss) attributable to common shares Class A common stock subject to possible redemption; 41,400,000 at redemption value of $10 per share IPO [Member] Private Placement [Member] us-gaap_NetCashProvidedByUsedInFinancingActivities Net cash provided by financing activities Other income - investment income on Trust Account Investment income earned on cash equivalents held in Trust Account Sale of Stock [Axis] Sale of Stock [Domain] us-gaap_OperatingIncomeLoss Loss from operations us-gaap_NetCashProvidedByUsedInOperatingActivities Net cash used in operating activities us-gaap_NetCashProvidedByUsedInInvestingActivities Net cash provided by (used in) investing activities us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease NET CHANGE IN CASH Cash paid for franchise taxes The amount of cash paid during the current period to franchise entities. Commitments and Contingencies Disclosure [Text Block] us-gaap_UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestAccrued Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total Investment, Policy [Policy Text Block] us-gaap_PaymentsOfStockIssuanceCosts Payments of Stock Issuance Costs Concentration Risk, Credit Risk, Policy [Policy Text Block] us-gaap_EquityMethodInvestmentOwnershipPercentage Equity Method Investment, Ownership Percentage General expenses The amount of general expenses. Administrative expenses Administrative Expenses The amount of administrative expenses. pacq_PaymentsOfOfferingCostsExcludingRelatedParty Payment of offering costs (excluding related parties) The amount of payments of offering costs, excluding related parties, during the period. pacq_AdjustmentsToAdditionalPaidInCapitalSharesSubjectToPossibleRedemptionAmount Shares subject to possible redemption Adjustments to additional paid in capital from shares subject to possible redemption amount. CASH FLOWS FROM INVESTING ACTIVITIES Franchise taxes The amount of franchise taxes. pacq_InvestmentMaturityTerm Investment Maturity, Term The term of investment maturity. HighPeak and the Sponsor [Member] Related to Highpeak and the sponsor. Proceeds from sale of Private Placement Warrants Common stock subject to redemption The value of common stock subjected to redemption. pacq_PaymentsOfOfferingCostsToRelatedParty Payment to related party for offering costs paid on behalf of the Company The amount of payments of offering costs to related parties during the period. pacq_MinimumNetTangibleAssets Minimum Net Tangible Assets Minimum net tangible assets. us-gaap_ProceedsFromIssuanceOfPrivatePlacement Proceeds from Issuance of Private Placement pacq_LiquidationExpensesConditionalOnInabilityToConsummateBusinessCombination Liquidation Expenses Conditional on Inability to Consummate Business Combination Liquidation expenses conditional on inability to consummate business combination. Retained Earnings [Member] Proceeds from public offering of Units Proceeds from Issuance Initial Public Offering pacq_PaymentToAffiliatesPerMonthFromInterestEarned Payment to Affiliates Per Month From Interest Earned Payment to affiliates per month from interest earned. pacq_PaymentPeriodToRelatedParty Payment Period to Related Party Represents the payment period agreed upon with a related party. Revenues Offering Costs [Policy Text Block] Disclosure of accounting policy for the offering costs. Redeemable Common Stock Policy [Policy Text Block] Disclosure of accounting policy for redeemable common stock. Emerging Growth Company [Policy Text Block] Disclosure of accounting policy for emerging growth company. pacq_PotentialPaymentsForDissolutionExpensesIfBusinessCombinationNotCompleted Potential Payments for Dissolution Expenses if Business Combination not Completed The amount of expenses that may be required as dissolution expenses if the initial business combination is not completed. Accrued taxes pacq_InvestmentIncomeHeldInTrustAccount Investment Income Held in Trust Account Investment income held in trust account. pacq_InvestmentInTrustAccount Investment in Trust Account Investment in trust account. Related Party Policy [Policy Text Block] Disclosure of accounting policy for related parties. Additional Paid-in Capital [Member] Public Offering Disclosure [Text Block] Complete disclosure of public offerings and other placements. pacq_ProfessionalPrintingFilingRegulatoryAndOtherCosts Professional, Printing, Filing, Regulatory, And Other Costs Professional, printing, filing, regulatory and other costs. Common Stock [Member] Related Party Transactions Disclosure [Text Block] pacq_MaximumRedemptionThresholdThatWouldCauseNetTangibleAssets Maximum Redemption Threshold That Would Cause Net Tangible Assets Maximum redemption threshold that would cause net tangible assets. Accrued expenses us-gaap_IncreaseDecreaseInAccruedLiabilities Income tax provision pacq_UnitsIssuedDuringPeriod Units Issued During Period The number of units issued during the period. Overallotment [Member] Related to the overallotment. Equity Components [Axis] Equity Component [Domain] pacq_PublicOfferingFeePercentage Public Offering Fee Percentage The percent of public offering fee. Cash and Investments Held in Trust Account [Member] Related to cash and investments held in trust account. Sale of price per warrants (in dollars per share) Class of Warrant or Right, Exercise Price of Warrants or Rights us-gaap_NotesPayable Notes Payable, Total us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest Net income (loss) before income tax provision Sale of warrants, value (in shares) Class of Warrant or Right, Number of Securities Called by Warrants or Rights us-gaap_OperatingExpenses Total operating expense Cash us-gaap_ConvertibleDebt Convertible Debt, Total us-gaap_CashEquivalentsAtCarryingValue Cash Equivalents, at Carrying Value, Total pacq_PercentageOfPublicSharesWouldAffectFromRedemptionUponMeetingOfConditionsOfBusinessCombinations Percentage of Public Shares Would Affect From Redemption Upon Meeting of Conditions of Business Combinations Percentage of public shares would affect from redemption upon meeting of conditions of business combinations. pacq_PurchasePriceOfPublicWarrantForSponsorCommittedToOfferOrCauseAffiliate Purchase Price of Public Warrant for Sponsor Committed to Offer or Cause Affiliate Purchase price of public warrant for sponsor committed to offer or cause an affiliate. us-gaap_CashAndCashEquivalentsAtCarryingValue Cash, beginning of period Cash, end of period pacq_CommonStockSharesForfeiture Common Stock Shares Forfeiture The number of common stock shares forfeited. pacq_CommonStockSharesForfeitureCost Common Stock Shares Forfeiture Cost The cost of common stock shares forfeited. pacq_UnderwritingDiscount Underwriting Discount The percent of underwriting discount. pacq_CommonStockDividendRatePercentage Common Stock Dividend Rate, Percentage Common stock dividend rate percentage. pacq_NumberOfSharesTransferredToIndependentDirectorNominees Number of Shares Transferred to Independent Director Nominees Number of shares transferred to independent directors nominees. pacq_NumberOfIndependentDirectors Number of Independent Directors Number of independent directors. pacq_NumberOfSharesTransferredToEachIndependentDirectorNominees Number of Shares Transferred to Each Independent Director Nominees Number of shares transferred to each independent director nominees. Sponsor [Member] Related to the sponsor. Founders [Member] Related to the founders shares. pacq_MinimumPeriodRequiredToTransferAssignSaleOfFoundersSharesAfterDateOfConsummationOfInitialBusinessAcquisition Minimum Period Required to Transfer Assign Sale of Founders Shares After Date of Consummation of Initial Business Acquisition Minimum period required to transfer, assign, sale of founders' shares after date of consummation of initial business acquisition. pacq_PercentageOfFoundersSharesRemainsNotTransferredAssignedSoldSubjectToCertainLimitedException Percentage of Founders Shares Remains Not Transferred Assigned Sold Subject to Certain Limited Exception Percentage of founders' shares remains not transferred. assigned, sold, subject to certain limited exception. pacq_MonthlyAgreedPaymentAmountToRelatedParty Monthly Agreed Payment Amount to Related Party Represents the agreed-upon monthly payment amount to a related party. pacq_NumberOfAffiliates Number of Affiliates Number of affiliates. Cash and Cash Equivalents, Policy [Policy Text Block] Affiliate Of Sponsor [Member] Related to an affiliate of sponsor. pacq_AggregatePriceUnderForwardPurchaseAgreement Aggregate Price Under Forward Purchase Agreement Aggregate price under forward purchase agreement. HighPeak Energy Partners Limited Partners [Member] Related to the Highpeak Energy Partners Limited Partners. pacq_BusinessCombinationCompletionPeriodFromClosingOfPublicOffering Business Combination Completion Period From Closing of Public Offering Business combination completion period from closing of public offering. Amendment Flag us-gaap_UnrecognizedTaxBenefits Unrecognized Tax Benefits, Ending Balance Accounting Policies [Abstract] Significant Accounting Policies [Text Block] pacq_CommonStockAndTemporaryEquitySharesOutstandingEndingBalance Common Stock and Temporary Equity, Shares, Outstanding, Ending Balance The number of common stock and temporary equity outstanding. Basis of Accounting, Policy [Policy Text Block] pacq_WarrantPriceTransferredToPublicHoldersInEventOfBusinessCombinationNotClosedWithinAllottedTime Warrant Price Transferred to Public Holders in Event of Business Combination Not Closed Within Allotted Time Warrant price transferred to public holders in event of business combination not closed within allotted time. Use of Estimates, Policy [Policy Text Block] New Accounting Pronouncements, Policy [Policy Text Block] us-gaap_SharesOutstanding Shares, Outstanding, Ending Balance Common stock, shares outstanding (in shares) Common Stock, Shares, Outstanding, Ending Balance Balance (in shares) Balance (in shares) Preferred stock, shares outstanding (in shares) Preferred Stock, Shares Outstanding, Ending Balance Current Fiscal Year End Date Document Fiscal Period Focus Document Fiscal Year Focus pacq_FoundersSharesStockPriceThresholdToRelieveTradingRestrictions Founders' Shares, Stock Price Threshold to Relieve Trading Restrictions Price of the entity's common stock which would be required to be attained for any 20 trading days within a 30-trading day period commencing after the initial Business Combination to relieve trading restrictions on Founders' Shares. pacq_ClassOfWarrantOrRightRedemptionStockPriceTrigger Class of Warrant Or Right, Redemption, Stock Price Trigger Price of the entity's common stock which would be required to be attained for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which notice of redemption is given before the redemption feature to become effective. Document Period End Date pacq_ClassOfWarrantOrRightRedemptionPeriod Class of Warrant Or Right, Redemption Period The redemption period of a class of warrant or right. pacq_ClassOfWarrantOrRightRedemptionPricePerShare Class of Warrant Or Right, Redemption Price Per Share The price per share at which the warrants are redeemed or may be called at. us-gaap_IncreaseDecreaseInPrepaidExpense Prepaid expenses Entity Ex Transition Period Entity Emerging Growth Company Document Type Entity Shell Company Entity Small Business Document Information [Line Items] Document Information [Table] Entity Filer Category Entity Current Reporting Status Weighted average shares outstanding, common stock (in shares) us-gaap_RepaymentsOfNotesPayable Payment of promissory note from sponsor Weighted average shares outstanding: us-gaap_AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount Sale of 10,280,000 Private Placement Warrants @ $1 per warrant Proceeds from promissory note from sponsor Proceeds from Notes Payable, Total Basic and diluted income per common share (in dollars per share) Entity Central Index Key Entity Registrant Name Net income (loss) per share: Entity [Domain] Asset Class [Axis] Legal Entity [Axis] Asset Class [Domain] Statement [Table] Statement of Financial Position [Abstract] us-gaap_AdjustmentsToAdditionalPaidInCapitalStockIssuedIssuanceCosts Underwriting commissions and offering expenses Statement of Cash Flows [Abstract] Shares subject to possible redemption (in shares) Shares subject to possible redemption (in shares) Entity Common Stock, Shares Outstanding (in shares) pacq_PaymentsForAdministrativeServicesRelatedParty Payments for Administrative Services, Related Party The amount of cash outflow from payments made to related parties for administrative services. Statement of Stockholders' Equity [Abstract] Cash released from Trust Account The amount of cash inflow from the release of the trust account. Income Statement [Abstract] Trading Symbol us-gaap_TableTextBlock Notes Tables Related Party [Axis] Related Party [Domain] us-gaap_StockIssuedDuringPeriodSharesShareBasedCompensationForfeited Shares Issued, Shares, Share-based Payment Arrangement, Forfeited CASH FLOWS FROM FINANCING ACTIVITIES: Sale of Class A common stock to public (in shares) Stock Issued During Period, Shares, New Issues TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY Sale of Class A common stock to public Stock Issued During Period, Value, New Issues Retained earnings Cash and Cash Equivalents [Axis] Cash and Cash Equivalents [Domain] Changes in operating assets and liabilities: Total stockholders' equity Balance Balance Common Class A [Member] us-gaap_DisclosureTextBlockAbstract Notes to Financial Statements Common Class B [Member] Class of Stock [Axis] Class of Stock [Domain] Cash and marketable securities held in Trust Account Assets Held-in-trust, Noncurrent EX-101.PRE 11 pacq-20190630_pre.xml XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE XML 12 R1.htm IDEA: XBRL DOCUMENT v3.19.2
Document And Entity Information - shares
6 Months Ended
Jun. 30, 2019
Jul. 26, 2019
Document Information [Line Items]    
Entity Registrant Name Pure Acquisition Corp.  
Entity Central Index Key 0001726293  
Trading Symbol pacq  
Current Fiscal Year End Date --12-31  
Entity Filer Category Non-accelerated Filer  
Entity Current Reporting Status Yes  
Entity Emerging Growth Company true  
Entity Ex Transition Period false  
Entity Small Business false  
Document Type 10-Q  
Document Period End Date Jun. 30, 2019  
Document Fiscal Year Focus 2019  
Document Fiscal Period Focus Q2  
Amendment Flag false  
Entity Shell Company false  
Common Class A [Member]    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding (in shares)   41,400,000
Common Class B [Member]    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding (in shares)   10,350,000
XML 13 R2.htm IDEA: XBRL DOCUMENT v3.19.2
Condensed Balance Sheets (Current Period Unaudited) - USD ($)
Jun. 30, 2019
Dec. 31, 2018
Current assets:    
Cash $ 578,974 $ 734,894
Prepaid expenses 3,023
Total current assets 578,974 737,917
Other assets:    
Cash and marketable securities held in Trust Account 422,347,275 418,727,517
Total other assets 422,347,275 418,727,517
TOTAL ASSETS 422,926,249 419,465,434
Current liabilities:    
Accounts payable and accrued expenses 45,113 39,867
Accrued taxes payable 114,387 357,759
Total current liabilities 159,500 397,626
Stockholders' equity:    
Preferred stock, $0.0001 par value; 1,000,000 shares authorized, none issued and outstanding
Additional paid-in capital 797,383 797,383
Retained earnings 7,968,331 4,269,390
Total stockholders' equity 8,766,749 5,067,808
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 422,926,249 419,465,434
Common Class A [Member]    
Current liabilities:    
Class A common stock subject to possible redemption; 41,400,000 at redemption value of $10 per share 414,000,000 414,000,000
Stockholders' equity:    
Common stock, value
Common Class B [Member]    
Stockholders' equity:    
Common stock, value $ 1,035 $ 1,035
XML 14 R3.htm IDEA: XBRL DOCUMENT v3.19.2
Condensed Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares
Jun. 30, 2019
Dec. 31, 2018
Preferred stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Preferred stock, shares authorized (in shares) 1,000,000 1,000,000
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Common Class A [Member]    
Common stock subject to possible redemption outstanding (in shares) 41,400,000 41,400,000
Common stock subject to possible redemption, redemption value per share (in dollars per share) $ 10 $ 10
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Common stock, shares authorized (in shares) 200,000,000 200,000,000
Common stock, shares issued (in shares) 0 0
Common stock, shares outstanding (in shares) 0 0
Common Class B [Member]    
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Common stock, shares authorized (in shares) 15,000,000 15,000,000
Common stock, shares issued (in shares) 10,350,000 10,350,000
Common stock, shares outstanding (in shares) 10,350,000 10,350,000
XML 15 R4.htm IDEA: XBRL DOCUMENT v3.19.2
Condensed Statements of Operations (Unaudited) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Revenues
Expenses:        
Administrative expenses 30,000 26,000 60,000 26,000
General expenses 42,926 36,311 144,089 36,761
Franchise taxes 28,959 71,000 86,927 71,000
Total operating expense 101,885 133,311 291,016 133,761
Loss from operations (101,885) (133,311) (291,016) (133,761)
Other income - investment income on Trust Account 2,592,502 1,484,040 5,027,471 1,484,040
Net income (loss) before income tax provision 2,490,617 1,350,729 4,736,455 1,350,279
Income tax provision 536,681 284,000 1,037,514 284,000
Net income (loss) attributable to common shares $ 1,953,936 $ 1,066,729 $ 3,698,941 $ 1,066,279
Common Class A [Member]        
Weighted average shares outstanding:        
Weighted average shares outstanding, common stock (in shares) 41,400,000 41,400,000 41,400,000 41,400,000
Net income (loss) per share:        
Basic and diluted income per common share (in dollars per share) $ 0.05 $ 0.03 $ 0.09 $ 0.03
Common Class B [Member]        
Weighted average shares outstanding:        
Weighted average shares outstanding, common stock (in shares) 10,350,000 10,350,000 10,350,000 10,350,000
Net income (loss) per share:        
Basic and diluted income per common share (in dollars per share) $ 0 $ 0 $ (0.01) $ 0
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Condensed Statements of Changes in Stockholders' Equity (Unaudited) - USD ($)
Common Stock [Member]
Common Class A [Member]
Common Stock [Member]
Common Class B [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Common Class A [Member]
Common Class B [Member]
Total
Common stock, shares outstanding (in shares) 10,350,000          
Balance (in shares) at Dec. 31, 2017 10,350,000          
Balance at Dec. 31, 2017 $ 1,035 $ 23,965 $ (5,881)     $ 19,119
Net income (loss) (450)     (450)
Common stock, shares outstanding (in shares) 10,350,000          
Balance at Mar. 31, 2018 $ 1,035 23,965 (6,331)     18,669
Balance (in shares) at Dec. 31, 2017 10,350,000          
Balance at Dec. 31, 2017 $ 1,035 23,965 (5,881)     19,119
Net income (loss)             1,066,279
Common stock, shares outstanding (in shares) 10,350,000          
Balance at Jun. 30, 2018 $ 31 $ 1,035 3,938,542 1,060,398     5,000,006
Common stock, shares outstanding (in shares) 10,350,000          
Balance (in shares) at Mar. 31, 2018 10,350,000          
Balance at Mar. 31, 2018 $ 1,035 23,965 $ (6,331)     18,669
Common stock, shares outstanding (in shares) 10,350,000   10,350,000      
Balance (in shares) at Mar. 31, 2018 10,350,000          
Balance at Mar. 31, 2018 $ 1,035 23,965 $ (6,331)     18,669
Net income (loss) 1,066,729     1,066,729
Sale of Class A common stock to public (in shares) 41,400,000            
Sale of Class A common stock to public $ 4,140 413,995,860     414,000,000
Underwriting commissions and offering expenses (9,506,582)     (9,506,582)
Sale of 10,280,000 Private Placement Warrants @ $1 per warrant 10,280,000     10,280,000
Shares subject to possible redemption (in shares) (41,085,881)          
Shares subject to possible redemption $ (4,109) (410,854,701)     (410,858,810)
Shares subject to possible redemption (in shares) 41,085,881          
Common stock, shares outstanding (in shares) 10,350,000          
Balance at Jun. 30, 2018 $ 31 $ 1,035 3,938,542 1,060,398     5,000,006
Common stock, shares outstanding (in shares) 314,119 10,350,000          
Common stock, shares outstanding (in shares) 10,350,000     0 10,350,000  
Balance (in shares) at Dec. 31, 2018 10,350,000     0 10,350,000  
Balance at Dec. 31, 2018 $ 1,035 797,383 4,269,390     5,067,808
Net income (loss) 1,745,005     1,745,005
Common stock, shares outstanding (in shares) 10,350,000     0 10,350,000  
Balance at Mar. 31, 2019 $ 1,035 797,383 6,014,395     6,812,813
Balance (in shares) at Dec. 31, 2018 10,350,000     0 10,350,000  
Balance at Dec. 31, 2018 $ 1,035 797,383 4,269,390     5,067,808
Net income (loss)             3,698,941
Sale of Class A common stock to public (in shares)         41,400,000    
Common stock, shares outstanding (in shares) 10,350,000     0 10,350,000  
Balance at Jun. 30, 2019 $ 1,035 797,383 7,968,331     8,766,749
Common stock, shares outstanding (in shares) 10,350,000          
Balance (in shares) at Mar. 31, 2019 10,350,000          
Balance at Mar. 31, 2019 $ 1,035 797,383 6,014,395     6,812,813
Net income (loss) 1,953,936     1,953,936
Common stock, shares outstanding (in shares) 10,350,000          
Balance at Jun. 30, 2019 $ 1,035 $ 797,383 $ 7,968,331     $ 8,766,749
Common stock, shares outstanding (in shares) 10,350,000     0 10,350,000  
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Condensed Statements of Changes in Stockholders' Equity (Unaudited) (Parentheticals) - $ / shares
Jun. 30, 2019
Mar. 31, 2019
Apr. 17, 2018
Mar. 31, 2018
Private Placement [Member]        
Sale of warrants, value (in shares) 10,280,000   10,280,000 10,280,000
Sale of price per warrants (in dollars per share) $ 1 $ 1 $ 1 $ 1
Sale of price per warrants (in dollars per share)     $ 11.50  
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Condensed Statement of Cash Flows (Unaudited) - USD ($)
3 Months Ended 6 Months Ended 14 Months Ended
Jun. 30, 2019
Mar. 31, 2019
Jun. 30, 2018
Mar. 31, 2018
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:              
Net income (loss) $ 1,953,936 $ 1,745,005 $ 1,066,729 $ (450) $ 3,698,941 $ 1,066,279  
Adjustments to reconcile net income to net cash used in operating activities:              
Investment income earned on cash equivalents held in Trust Account (2,592,502)   (1,484,040)   (5,027,471) (1,484,040)  
Changes in operating assets and liabilities:              
Prepaid expenses         3,023 (15,164)  
Accrued expenses         5,246 39,682  
Accrued taxes         (243,371) 355,000  
Net cash used in operating activities         (1,563,632) (38,243)  
CASH FLOWS FROM INVESTING ACTIVITIES              
Investment of cash in Trust Account         (414,000,000)  
Cash released from Trust Account         1,407,712  
Net cash provided by (used in) investing activities         1,407,712 (414,000,000)  
CASH FLOWS FROM FINANCING ACTIVITIES:              
Proceeds from public offering of Units         414,000,000  
Proceeds from sale of Private Placement Warrants         10,280,000  
Proceeds from promissory note from sponsor         200,000  
Payment of promissory note from sponsor         (200,000)  
Payment of underwriting commissions         (8,280,000)  
Payment of offering costs (excluding related parties)         (1,192,422)  
Payment to related party for offering costs paid on behalf of the Company         (34,160)  
Net cash provided by financing activities         414,773,418  
NET CHANGE IN CASH         (155,920) 735,175  
Cash, beginning of period   $ 734,894   $ 25,000 734,894 25,000  
Cash, end of period $ 578,974   $ 760,175   578,974 760,175 $ 578,974
Supplemental disclosure of investing activities:              
Cash paid for franchise taxes         202,712  
Cash paid for income taxes         1,165,000 $ 2,135,000
Supplemental disclosure of financing activities:              
Common stock subject to redemption         $ 410,858,810  
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Note 1 - Description of Organization and Business Operations
6 Months Ended
Jun. 30, 2019
Notes to Financial Statements  
Business Description and Basis of Presentation [Text Block]
Note
1
- Description of Organization and Business Operations
 
Pure Acquisition Corp. (the "Company'', "we", "us" or "our") was incorporated in Delaware on
November 13, 2017
as a blank check company for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, recapitalization, reorganization or other similar business combination with
one
or more businesses or entities (a "Business Combination"). We intend to focus our search for target businesses in the energy industry with an emphasis on opportunities in the upstream oil and gas industry in North America.
 
At
June 30, 2019,
the Company had
not
yet commenced operations. All activity from
November 13, 2017 (
inception) through
June 30, 2019
relates to the Company's formation and the public offering described below. The Company will
not
generate any operating revenues until after completion of its Business Combination, at the earliest. The Company will generate non-operating income in the form of interest income on cash and cash equivalents from the proceeds derived from the public offering. The Company has selected
December 31
as its fiscal year-end. The Company is an early stage and emerging growth company and, as such, the Company is subject to all of the risks associated with early stage and emerging growth companies.
 
On
April 17, 2018 (
the “IPO Closing Date”), the Company consummated its initial public offering (“Public Offering”) of
41,400,000
units, representing a complete exercise of the over-allotment option, at a purchase price of
$10.00
per unit as discussed in Note
3.
Each unit consists of
one
share of Class A common stock and
one
half of
one
warrant (a "Unit"). Each whole warrant entitles the holder to purchase
one
share of Class A common stock at a price of
$11.50.
Each warrant will become exercisable on the later of
30
days after the completion of an initial Business Combination or
12
months from the
April 17, 2018
close of the Company’s offering and will expire on the
fifth
anniversary of our completion of an initial Business Combination, or earlier upon redemption or liquidation.
 
On
April 17, 2018,
HighPeak Pure Acquisition, LLC ("HighPeak" and the "Sponsor") purchased from us an aggregate of
10,280,000
private placement warrants at
$1.00
per private placement warrant (for a total purchase price of
$10,280,000
) in a private placement that occurred simultaneously with the consummation of the Public Offering.
 
The Company intends to finance its initial Business Combination with proceeds from the Public Offering and the
$10,280,000
private placement (Note
3
). Upon the closing of the Public Offering and the private placement,
$414,000,000
was placed in a trust account (“Trust Account”). The proceeds held in the Trust Account will be invested only in U.S. government treasury bills with a maturity of
one hundred eighty
(
180
) days or less or in money market funds that meet certain conditions under Rule
2a
-
7
under the Investment Act of
1940
and invest only in direct U.S. government obligations.
 
The Company's management has broad discretion with respect to the specific application of the net proceeds of the Public Offering although substantially all of the net proceeds are intended to be applied generally toward consummating a Business Combination. There is
no
assurance the Company will be able to complete a Business Combination successfully. Management placed
$10.00
per Unit sold in the Public Offering into the Trust Account to be held until the earlier of (i) the consummation of its initial Business Combination or (ii) the Company's failure to consummate a Business Combination within
18
months from the consummation of the Public Offering. Placing funds in the Trust Account
may
not
protect those funds from
third
party claims against the Company. Although the Company will use its reasonable best efforts to have all vendors, service providers, prospective target businesses or other entities it engages, execute agreements with the Company waiving any claim of any kind in or to any monies held in the Trust Account, there is
no
guarantee such persons will execute such agreements. Additionally, the interest earned on the Trust Account balance
may
be released to the Company for any amounts necessary to pay (i) the Company's income and other tax obligations, (ii) payment of
$10,000
per month to our Sponsor or
one
of its affiliates, for up to
18
months, for office space, utilities and secretarial and administrative support commencing on
April 13, 2018,
the date of listing of the Company's securities on the NASDAQ, and (iii) the Company's liquidation expenses if the Company is unable to consummate a Business Combination within the required time period (up to a maximum of
$50,000
).
 
Cash proceeds from the Public Offering and the private placement remaining outside the Trust Account are available to pay prospective acquisition business, technical, legal and accounting due diligence, continuing general and administrative expenses and for working capital purposes. To meet additional working capital needs, the Company's Sponsor or its affiliates
may,
but are
not
obligated to, loan the Company funds as
may
be required. The loans would either be paid upon consummation of the Company's initial Business Combination, or, at the lender's discretion, up to
$1,500,000
of such loans
may
be converted upon consummation of the Company's Business Combination into private placement warrants at a price of
$1.00
per private placement warrant. If the Company does
not
complete a Business Combination, the loans would be repaid only out of funds held outside of the Trust Account. 
 
Initial Business Combination
 
Pursuant to the NASDAQ Capital Markets listing rules, the Company's initial Business Combination must be with a target business or businesses whose collective fair market value is at least equal to
80%
of the balance in the Trust Account, net of taxes payable, at the time of the execution of a definitive agreement for such Business Combination, although this
may
entail simultaneous acquisitions of several target businesses. The fair market value of the target will be determined by the Company's board of directors based upon
one
or more standards generally accepted by the financial community (such as actual and potential sales, earnings, cash flow, proved oil and gas reserves, oil and gas production, oil and gas lease acreage and/or book value). The target business or businesses the Company acquires
may
have a collective fair market value substantially in excess of
80%
of the Trust Account balance. To consummate such a Business Combination, the Company
may
issue a significant amount of its debt or equity securities to the sellers of such business and/or seek to raise additional funds through a private offering of debt or equity securities. If the Company's securities are
not
listed on NASDAQ at the time of the initial Business Combination, the Company would
not
be required to satisfy the
80%
requirement. However, the Company intends to satisfy the
80%
requirement even if the Company's securities are
not
listed on NASDAQ at the time of the initial Business Combination.
 
The Company will provide the public stockholders, who are the holders of the Class A common stock ("Public Shares") sold as part of the Units in the Public Offering, whether purchased in the Public Offering or in the aftermarket and the Company's stockholders prior to the Public Offering (including the Sponsor) (the "Initial Stockholders") to the extent they purchase such Public Shares ("Public Stockholders"), with an opportunity to redeem all or a portion of their Public Shares of the Company's Class A common stock, irrespective of whether they vote for or against the proposed transaction or if the Company conducts a tender offer, upon the completion of the initial Business Combination either (i) in connection with a stockholder meeting called to approve the Business Combination, or (ii) by means of a tender offer, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account including interest, net of taxes payable, divided by the number of the then outstanding shares of Class A common stock. The Class A common stock subject to redemption will be recorded at redemption value and classified as temporary equity, in accordance with Accounting Standards Codification ("ASC") Topic
480
"Distinguishing Liabilities from Equity". The Company will proceed with a Business Combination only if the Company has net tangible assets of at least
$5,000,001
upon such consummation of a Business Combination and in the case of a stockholder vote, a majority of the outstanding shares voted are voted in favor of the Business Combination. The decision as to whether the Company will seek stockholder approval of a proposed Business Combination or conduct a tender offer will be made by the Company, solely in its discretion, based on a variety of factors such as the timing of the transaction and whether the terms of the transaction would otherwise require it to seek stockholder approval under the law or stock exchange listing requirement. If a stockholder vote is
not
required and the Company decides
not
to hold a stockholder vote for business or other legal reasons, the Company will, pursuant to the proposed amended and restated certificate of incorporation, (i) conduct the redemptions pursuant to Rule
13e
-
4
and Regulation
14E
of the Exchange Act, which regulate issuer tender offers, and (ii) file tender offer documents with the Securities and Exchange Commission (“SEC”) prior to completing the initial Business Combination which contain substantially the same financial and other information about the initial Business Combination and the redemption rights as is required under Regulation
14A
of the Exchange Act, which regulates the solicitation of proxies.
 
The Initial Stockholders will agree to vote their founders' shares (as described in Note
6
) and any Public Shares purchased during or after the Public Offering in favor of the initial Business Combination, and the Company's executive officers, directors and director nominees have also agreed to vote any Public Shares purchased after the Public Offering in favor of the initial Business Combination. The Initial Stockholders entered into a letter agreement, pursuant to which they agreed to waive their redemption rights with respect to the initial Business Combination as to their founders' shares as well as any Public Shares purchased by the Initial Stockholders. In addition, the Initial Stockholders also agreed to waive their rights to liquidating distributions from the Trust Account with respect to the founders' shares if the Company fails to complete the initial Business Combination within the prescribed time frame. However, if the Initial Stockholders (or any of the Company's executive officers, directors or affiliates) acquire Public Shares after the Public Offering, they will be entitled to liquidating distributions from the Trust Account with respect to such Public Shares in the event the Company does
not
complete the initial Business Combination within such applicable time period.
 
Going Concern and Failure to Consummate a Business Combination
 
The Company has
18
months from the consummation of its Public Offering (until the close of business on
October 16, 2019)
to complete its initial Business Combination. If the Company is unable to complete the initial Business Combination within
18
months from the consummation of the Public Offering, the Company must: (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but
not
more than
ten
business days thereafter, redeem the Public Shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest (which interest shall be net of taxes payable and up to
$50,000
for dissolution expenses) divided by the number of then outstanding Public Shares, which redemption will completely extinguish public stockholders' rights as stockholders (including the right to receive further liquidation distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the Company's remaining stockholders and the Company's Board of Directors, dissolve and liquidate, subject in the case of clauses (ii) and (iii) to the Company's obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law.
 
This mandatory liquidation and subsequent dissolution of the Company if an initial Business Combination is
not
completed by the close of business on
October 16, 2019
raises substantial doubt about the Company’s ability to continue as a going concern. 
No
adjustments have been made to the carrying amounts of assets or liabilities should the Company be required to liquidate after
October 16, 2019. 
 
In the event of such liquidation, it is possible the per share value of the residual assets remaining available for distribution (including the Trust Account assets) will be less than the offering price per Unit in the Public Offering.  Based on the value of the Trust Account at
June 30, 2019,
the redemption value, after payment of accrued income taxes and other expenses, is greater than
$10.00
per share.
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Note 2 - Significant Accounting Policies
6 Months Ended
Jun. 30, 2019
Notes to Financial Statements  
Significant Accounting Policies [Text Block]
Note
2
- Significant Accounting Policies
 
Basis of Presentation
 
The accompanying unaudited interim condensed financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and pursuant to the accounting and disclosure rules and regulations of the SEC, and reflect all adjustments, consisting only of normal recurring adjustments, which are, in the opinion of management, necessary for a fair presentation of the financial position as of
June 30, 2019
and the results of operations and cash flows for the period presented. Certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to such rules and regulations. Interim results are
not
necessarily indicative of results for a full year.
 
The accompanying unaudited interim condensed financial statements should be read in conjunction with the audited financial statements and notes thereto included in the final prospectus filed by the Company with the SEC on
April 16, 2018
and with the Company’s Annual Report on Form
10
-K filed with the SEC on
February 8, 2019.
 
Emerging growth company
 
The Company is an "emerging growth company," as defined in Section
2
(a) of the Securities Act of
1933,
as amended, (the "Securities Act"), as modified by the Jumpstart our Business Startups Act of
2012,
(the "JOBS Act"), and it
may
take advantage of certain exemptions from various reporting requirements applicable to other public companies that are
not
emerging growth companies including, but
not
limited to,
not
being required to comply with the auditor attestation requirements of Section
404
of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments
not
previously approved.
 
Further, Section
102
(b)(
1
) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have
not
had a Securities Act registration statement declared effective or do
not
have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected
not
to opt out of such extended transition period which means when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This
may
make comparison of the Company's financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.
 
Net Income (Loss) Per Common Share
 
Net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. The Company has
not
considered the effect of the warrants sold in the Public Offering (including the over-allotment) and private placement warrants to purchase
20,700,000
and
10,280,000
shares of the Company’s Class A common stock, respectively, in the calculation of diluted income per share, since their inclusion would be anti-dilutive.
 
The Company’s statement of operations includes a presentation of net income per share for common shares subject to redemption in a manner similar to the
two
-class method of net income (loss) per share. Net income (loss) per common share for basic and diluted for Class A common stock is calculated by dividing the interest income earned on the Trust Account, net of applicable administrative fees, franchise taxes and income taxes, by the weighted average number of Class A common stock since issuance. Net loss per common share for basic and diluted for Class B common stock is calculated by dividing the net loss, which excludes income attributable to Class A common stock, by the weighted average number of Class B common stock outstanding for the period. 
 
Cash and cash equivalents
 
The Company considers all short-term investments with an original maturity of
three
months or less when purchased to be cash equivalents. The Company did
not
have any cash equivalents as of
June 30, 2019
or
December 31, 2018. 
 
Cash and Marketable Securities held in the Trust Account
 
The amounts held in the Trust Account represent proceeds from the Public Offering and the private placement of private placement warrants of
$414,000,000
which were invested in permitted United States “government securities” within the meaning of Section
2
(a)(
16
) of the Investment Company Act of
1940,
as amended (the “Investment Company Act”), having a maturity of
180
days or less, or in money market funds meeting certain conditions under Rule
2a
-
7
under the Investment Company Act (“Permitted Investments”) and are classified as restricted assets because such amounts can only be used by the Company in connection with the consummation of an initial Business Combination.
 
As of
June 30, 2019,
and
December 31, 2018,
cash and Permitted Investments held in the Trust Account had a fair value of
$422,347,275
and
$418,727,517,
respectively. For the
three
months and
six
months ended
June 30, 2019,
investments held in the Trust Account generated interest income of
$2,592,502
and
$5,027,471,
respectively. From the IPO Closing Date through
June 30, 2019,
the Company paid
$2,135,000
to the IRS, with funds received from the Trust Account, for estimated federal income taxes. From the IPO Closing Date through
June 30, 2019,
the Company paid
$120,000
to an affiliate of our Sponsor, with funds received from the Trust Account, for administrative services.
 
Redeemable Common Stock
 
As discussed in Note
1,
all of the
41,400,000
Public Shares contain a redemption feature which allows for the redemption of Class A Common Stock under the Company’s liquidation or tender offer/stockholder approval provisions. In accordance with FASB ASC
480,
redemption provisions
not
solely within the control of the Company require the security to be classified outside of permanent equity. Ordinary liquidation events, which involve the redemption and liquidation of all of the entity’s equity instruments, are excluded from the provisions of FASB ASC
480.
Although the Company has
not
specified a maximum redemption threshold, its amended and restated certificate of incorporation provides that in
no
event will the Company redeem its Public Shares in an amount that would cause its net tangible assets to be less than
$5,000,001.
 
The Company recognizes changes in redemption value immediately as they occur and will adjust the carrying value of the security at the end of each reporting period. Increases or decreases in the carrying number of redeemable shares of Class A Common Stock shall be affected by charges against additional paid-in capital.
 
Accordingly, at
June 30, 2019,
the
41,400,000
shares of Class A Common Stock were classified outside of permanent equity at approximately
$10.00
per share.
 
Concentration of credit risk
 
Financial instruments that potentially subject the Company to concentration of credit risk consist of a cash account in a financial institution which, at times
may
exceed the Federal depository insurance coverage of
$250,000.
At
June 30, 2019,
the Company had
not
experienced losses on this account and management believes the Company is
not
exposed to significant risks on such account.
 
Use of estimates
 
The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates.
 
Fair value of financial instruments
 
The fair value of the Company's assets and liabilities, which qualify as financial instruments under ASC Topic
820,
"Fair Value Measurements and Disclosures", approximates the carrying amounts represented in the accompanying balance sheets, primarily due to their short-term nature.
 
Offering Costs
 
The Company complies with the requirements of FASB ASC
340
-
10
-
S99
-
1
and SEC Staff Accounting Bulletin (“SAB”) Topic
5A
– “Expenses of
Offering”. Offering costs of
$9,506,582
consisting principally of underwriting discounts of
$8,280,000
and
$1,226,582
of professional, printing, filing, regulatory and other costs incurred through the date of the financial statements directly related to the preparation of the Public Offering were charged to stockholders' equity upon completion of the Public Offering (See Note
3
).
 
Income taxes
 
The Company follows the asset and liability method for accounting for income taxes under FASB ASC
740
- "Income Taxes." Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that included the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.
 
FASB ASC
740
prescribes a recognition threshold and a measurement attribute for financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than
not
to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were
no
unrecognized tax benefits and
no
amounts accrued for interest and penalties as of
June 30, 2019
and
December 31, 2018.
The Company is currently
not
aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception.  
 
Related Parties
 
The Company follows subtopic ASC
850
-
10
for the identification of related parties and disclosure of related party transactions.
 
Pursuant to Section
850
-
10
-
20,
the related parties include: (a) affiliates of the Company (“Affiliate” means, with respect to any specified person, any other person that, directly or indirectly through
one
or more intermediaries, controls, is controlled by or is under common control with such person, as such terms are used in and construed under Rule
405
under the Securities Act); (b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section
825
-
10
-
15,
to be accounted for by the equity method by the investing entity; (c) trusts for the benefit of employees, such as pension and profit-sharing thrust that are managed by or under the trusteeship of management; (d) principal owners of the Company; (e) management of the Company; (f) other parties with which the Company
may
deal if
one
party controls or can significantly influence the management or operating policies of the other to an extent that
one
of the transacting parties might be prevented from fully pursuing its own separate interests; and (g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in
one
of the transacting parties and can significantly influence the other to an extent that
one
or more of the transacting parties might be prevented from fully pursuing its own separate interests.
 
Recent Accounting Pronouncements
 
The Company has evaluated recently issued, but
not
yet effective, accounting pronouncements and does
not
believe they would have a material effect on the Company's financial statements.
 
Subsequent Events
 
The Company evaluates subsequent events and transactions that occur after the balance sheet date for potential recognition or disclosure. Any material events that occur between the balance sheet date and the date the financial statements were issued are disclosed as subsequent events, while the financial statements are adjusted to reflect any conditions that existed at the balance sheet date.
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Note 3 - Public Offering and Private Placement
6 Months Ended
Jun. 30, 2019
Notes to Financial Statements  
Public Offering Disclosure [Text Block]
Note
3
- Public Offering and Private Placement
 
Public Offering
 
On
April 17, 2018,
the Company sold
41,400,000
Units in its initial Public Offering, including
5,400,000
Units sold to cover over-allotments, at a price of
$10.00
per Unit resulting in gross proceeds of
$414,000,000.
Each Unit consists of
one
share of the Company's Class A common stock and
one
-half of
one
warrant, each whole warrant entitles the holder to purchase
one
share of Class A common stock at a price of
$11.50
per share, subject to adjustment ("Warrant").
No
fractional Warrants will be issued upon separation of the Units and only whole Warrants will trade. Each Warrant will become exercisable on the later of (i)
30
days after the completion of the initial Business Combination and (ii)
12
months from the closing of the Public Offering,
April 17, 2018,
and will expire
five
years after the completion of the initial Business Combination or earlier upon redemption or liquidation.
 
The Company
may
redeem the Warrants, in whole and
not
in part, at a price of
$0.0l
per Warrant upon
30
days' notice (
"30
-day redemption period"), only in the event the last sales price of the Class A common stock equals or exceeds
$18.00
per share for any
20
trading days within a
30
-trading day period ending on the
third
trading day prior to the date on which notice of redemption is given, provided there is an effective registration statement with respect to the shares of Class A common stock underlying such Warrants and a current prospectus relating to those shares of Class A common stock is available throughout the
30
-day redemption period. If the Company calls the Warrants for redemption as described above, the Company's management will have the option to require all holders that wish to exercise Warrants to do so on a "cashless basis." In determining whether to require all holders to exercise their Warrants on a "cashless basis," the management will consider, among other factors, the Company's cash position, the number of Warrants outstanding and the dilutive effect on the Company's stockholders of issuing the maximum number of shares of Class A common stock issuable upon the exercise of the Warrants.
 
The Sponsor has committed to offer or cause an affiliate to offer to purchase, at
$1.00
per Warrant (exclusive of commissions), the outstanding Warrants in a tender offer that would commence after our announcement of an initial Business Combination and occur in connection with such Business Combination. The warrant tender offer would
not
be conditioned upon any minimum number of Warrants being tendered. The Sponsor also committed to offer or cause an affiliate to offer to purchase, at
$1.00
per Warrant (exclusive of commissions), the outstanding Warrants in a tender offer that would commence after our filing of a proxy statement or information statement with respect to a proposed amendment to our amended and restated certificate of incorporation that would affect the substance of timing of our obligation to redeem
100%
of our public shares if we do
not
complete a Business Combination within
18
months from the consummation of our Public Offering. Any such purchases would occur in connection with the effectiveness of such amendment.
 
There will be
no
redemption rights or liquidating distributions with respect to the Warrants, which will expire worthless if we fail to complete our Business Combination within the
18
-month time period. The Company paid an underwriting discount of
2.0%
of the per Unit offering price to the underwriters at the closing of the Public Offering.
 
Private Placement
 
The Sponsor purchased from the Company an aggregate of
10,280,000
private placement warrants at
$1.00
per private placement warrant (for a total purchase price of
$10,280,000
) in a private placement that occurred simultaneously with the consummation of the offering.
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Note 4 - Related Party Transactions
6 Months Ended
Jun. 30, 2019
Notes to Financial Statements  
Related Party Transactions Disclosure [Text Block]
Note
4
- Related Party Transactions
 
Founders’ Shares
 
In connection with the organization of the Company, a total of
10,062,500
shares of Class B common stock were sold to the Sponsor at a price of approximately
$0.002
per share for an aggregate of
$25,000
("Founders' Shares"). In
March 2018,
our Sponsor returned to us, at
no
cost, an aggregate of
1,437,500
Founders’ Shares, which we cancelled, leaving an aggregate of
8,625,000
Founders’ Shares outstanding. In
March 2018,
our Sponsor transferred
40,000
Founders’ Shares to each of its
three
independent director nominees resulting in a total of
120,000
Founders’ Shares transferred to our independent director nominees. In
April 2018,
we effected a stock dividend of
0.2
shares of Class B common stock for each outstanding share of Class B common stock, resulting in our Sponsor and independent director nominees holding an aggregate of
10,350,000
Founders’ Shares. The Sponsor would have been required to forfeit only a number of shares of Class B common stock necessary to continue to maintain the
20.0%
ownership interest in our shares of common stock after giving effect to the offering and exercise, if any, of the underwriters' over-allotment option. As a result of the full exercise of the underwriters' over-allotment option,
no
shares were forfeited.
 
Subject to certain limited exceptions,
50%
of the Founders' Shares will
not
be transferred, assigned, sold until the earlier of: (i)
one
year after the date of the consummation of the initial Business Combination or (ii) the date on which the closing price of the Company's Class A common stock equals or exceeds
$12.00
per share (as adjusted) for any
20
trading days within any
30
-trading day period commencing after the initial Business Combination, and the remaining
50%
of the Founders' Shares will
not
be transferred, assigned, sold until
one
year after the date of the consummation of the initial Business Combination, or earlier, in either case, if, subsequent to the Company's initial Business Combination, the Company consummates a subsequent liquidation, merger, stock exchange, reorganization or other similar transaction which results in all stockholders having the right to exchange their common stock for cash, securities or other property.
 
Related Party Loans
 
The Sponsor loaned the Company an aggregate of up to
$200,000
to cover expenses related to the Company's formation and the Public Offering. The note was executed on
December 16, 2017
and the Company requested and received
$200,000
in funds on
January 5, 2018.
The Company repaid the note on
April 17, 2018
in full without interest.
 
We do
not
believe we will need to raise additional funds following the offering to meet the expenditures required for operating our business. However, to finance transaction costs in connection with an intended initial Business Combination, our Sponsor, officers, directors or their affiliates
may,
but are
not
obligated to, loan us funds as
may
be required. If we consummate an initial Business Combination, we would repay such loaned amounts. In the event the initial Business Combination does
not
close, we
may
use a portion of the working capital held outside the Trust Account to repay such loaned amounts, but
no
proceeds from our Trust Account would be used for such repayment. Up to
$1,500,000
of such loans
may
be convertible into private placement warrants of the post Business Combination entity at a price of
$1.00
per private placement warrant at the option of the lender.
 
Administrative Service Agreement
 
Commencing on
April 13, 2018,
the date of the listing of our securities on the NASDAQ, through the earlier of our consummation of our initial Business Combination or our liquidation, we have agreed to pay our Sponsor or
one
of its affiliates
$10,000
per month for up to
18
months to entice our Sponsor to make available to us certain general and administrative services, including office space, utilities and administrative support, as we
may
require from time to time. The Company incurred administrative expenses of
$30,000
and
$26,000
for the
three
-month periods ended
June 30, 2019
and
June 30, 2018,
respectively. For the
six
-month periods ended
June 30, 2019
and
June 30, 2018,
the Company incurred
$60,000
and
$26,000
for administrative services, respectively. From the IPO Closing Date through
June 30, 2019,
the Company paid
$120,000
to an affiliate of our Sponsor, with funds received from the Trust Account, for administrative services. Upon completion of the initial Business Combination or our liquidation, we will cease paying these monthly fees.
 
Private Placement
 
As discussed in Note
1,
the Sponsor purchased an aggregate of
10,280,000
private placement warrants at
$1.00
per private placement warrant (for a total purchase price of
$10,280,000
) from us simultaneous with the closing of the Public Offering. Each whole private placement warrant is exercisable for
one
whole share of the Company’s Class A Common Stock at a price of
$11.50
per share. A portion of the purchase price of the private placement warrants was added to the proceeds from the Public Offering held in the Trust Account. If the initial Business Combination is
not
completed within
18
months from the closing of the Public Offering, the proceeds from the sale of the private placement warrants held in the Trust Account will be used to fund the redemption of the Public Shares (subject to the requirements of applicable law) and the private placement warrants will expire worthless. The private placement warrants will be non-redeemable and exercisable on a cashless basis so long as they are held by the Sponsor or its permitted transferees.
 
The Sponsor and the Company’s officers and directors agreed, subject to limited exceptions,
not
to transfer, assign or sell any of their private placement warrants until
30
days after the completion of the initial Business Combination.
 
Forward Purchase Agreement
 
In
April 2018,
HighPeak Energy Partners, LP ("HighPeak LP") entered into a forward purchase agreement with us that provides for the purchase by HighPeak LP of an aggregate of up to
15,000,000
shares of our Class A common stock and
7,500,000
warrants for
$10.00
per forward unit, for an aggregate purchase price of up to
$150,000,000
in a private placement that will close simultaneously with the closing of our initial Business Combination. HighPeak LP is a limited partnership affiliated with our Sponsor. The forward purchase warrants will have the same terms as the private placement warrants so long as they are held by HighPeak LP, its affiliates or its permitted transferees, and the forward purchase shares are identical to the shares of Class A common stock included in the Units sold in the Public Offering, except the forward purchase shares are subject to transfer restrictions and certain registration rights, as described in the forward purchase agreement. HighPeak LP's commitment under the forward purchase agreement
may
be reduced under certain circumstances as described in the agreement.
 
Warrant Tender Offer
 
Our Sponsor has committed to offer or cause an affiliate to offer to purchase, at
$1.00
per public warrant (exclusive of commissions), the outstanding public warrants in a tender offer that would commence after our announcement of an initial Business Combination and occur in connection with such Business Combination. The warrant tender offer would
not
be conditioned upon any minimum number of warrants being tendered.
 
Our Sponsor has also committed to offer or cause an affiliate to offer to purchase, at
$1.00
per public warrant (exclusive of commissions), the outstanding public warrants in a tender offer that would commence after our filing of a proxy statement or information statement with respect to a proposed amendment to our amended and restated certificate of incorporation that would affect the substance of timing of our obligation to redeem
100%
of our public shares if we do
not
complete a Business Combination within
18
months from the closing of the Public Offering. Any such purchases would occur in connection with the effectiveness of such amendment.
 
In
April 2018,
an affiliate of our Sponsor deposited cash funds in an amount equal to
$20,700,000
with Continental Stock Transfer & Trust Company prior to the closing of the Public Offering. The funds held in the escrow account
may
be used (or the letter of credit referred to below
may
be drawn upon) to pay
$1.00
per whole warrant to holders of public warrants (excluding private placement warrants or forward purchase warrants) that tender in the tender offer for the public warrants. At any time, our Sponsor or its affiliate
may
substitute a letter of credit from a financially capable bank in good standing in lieu of cash or cash in lieu of a letter of credit. Neither funds in the escrow account nor the letter of credit shall be held in trust nor comprise any portion of any pro-rata distribution of our Trust Account. In the event a Business Combination is announced and a tender offer for the warrants is made, but the Business Combination is later abandoned, the tender offer will
not
be closed, and the warrants will be returned to the holders.
 
In the event we are unable to close a Business Combination within the allotted time, the escrow agent will be authorized to transfer
$1.00
per whole public warrant, to holders of public warrants other than our sponsor and its affiliates, at the same time as we redeem our public shares, and all warrants will expire worthless.
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Note 5 - Commitments and Contingencies
6 Months Ended
Jun. 30, 2019
Notes to Financial Statements  
Commitments and Contingencies Disclosure [Text Block]
Note
5
- Commitments and Contingencies
 
Business Combination Marketing Agreement
 
The Company engaged the underwriters from our Public Offering as advisors in connection with any potential Business Combination to assist us in holding meetings with our stockholders to discuss the potential Business Combination and the target business' attributes, introduce us to potential investors interested in purchasing our securities, assist us in obtaining stockholder approval for the Business Combination and assist us with our press releases and public filings in connection with the Business Combination. The Company will pay Oppenheimer & Co. Inc. and EarlyBirdCapital a cash fee equal to
3.5%
of the gross proceeds of the Public Offering (exclusive of any applicable finders’ fees which might become payable) for such services upon the consummation of our initial Business Combination. As of
June 30, 2019,
and
December 31, 2018,
none
of the above services had been performed and accordingly,
no
amounts have been recorded in the accompanying financial statements.
 
Registration Rights
 
The holders of our Founders' Shares issued and outstanding and any private placement warrants issued to our Sponsor, officers, directors or their affiliates, including private placement warrants issued in payment of working capital loans made to us (and all underlying securities), will be entitled to registration rights pursuant to an agreement signed
April 12, 2018.
The holders of a majority of these securities are entitled to make up to
three
demands that we register such securities. The holders of the majority of the Founders' Shares can elect to exercise these registration rights at any time commencing
three
months prior to the date on which these shares of Class B common stock are to be released from escrow. The holders of a majority of the private placement warrants issued to our Sponsor, officers, directors or their affiliates in payment of working capital loans made to us (or underlying securities) can elect to exercise these registration rights at any time after we consummate a Business Combination. In addition, the holders have certain "piggy-back" registration rights with respect to registration statements filed subsequent to our consummation of a Business Combination. The Company will bear the expenses incurred in connection with the filing of any such registration statements.
XML 24 R13.htm IDEA: XBRL DOCUMENT v3.19.2
Note 6 - Stockholders' Equity
6 Months Ended
Jun. 30, 2019
Notes to Financial Statements  
Stockholders' Equity Note Disclosure [Text Block]
Note
6
- Stockholders' Equity
 
Preferred Stock
 
The Company is authorized to issue
1,000,000
shares of preferred stock with a par value of
$0.0001
per share with such designation, rights and preferences as
may
be determined from time to time by the Company's board of directors. At
June 30, 2019
and
December 31, 2018,
no
preferred stock is issued or outstanding.
 
Class A Common Stock
 
The Company is authorized to issue up to
200,000,000
shares of Class A Common Stock. If the Company enters into an initial Business Combination, it
may (
depending on the terms of such initial Business Combination) be required to increase the number of shares of Class A Common Stock which the Company is authorized to issue at the same time as the Company’s stockholders vote on the initial Business Combination to the extent the Company seeks stockholder approval in connection with the initial Business Combination. Holders of the Company’s common stock are entitled to
one
vote for each share of common stock held. At
June 30, 2019
and
December 31, 2018,
there were
41,400,000
shares of Class A Common Stock, of which
41,400,000
were classified outside of permanent equity.
 
Class B Common Stock
 
The Company is authorized to issue up to
15,000,000
shares of Class B Common Stock. At
June 30, 2019
and
December 31, 2018,
there were
10,350,000
shares of Class B Common Stock issued and outstanding. See Note
4
Founders
Shares
.  
XML 25 R14.htm IDEA: XBRL DOCUMENT v3.19.2
Note 7 - Fair Value Measurements
6 Months Ended
Jun. 30, 2019
Notes to Financial Statements  
Fair Value Disclosures [Text Block]
Note
7
– Fair Value Measurements
 
The following table presents information about the Company’s assets, measured on a recurring basis, as of
June 30, 2019
and
December 31, 2018.
The table indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. In general, fair values determined by Level
1
inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities. Fair values determined by Level
2
inputs utilize data points that are observable, such as quoted prices, interest rates and yield curves. Fair values determined by Level
3
inputs are unobservable data points for the asset or liability, and includes situations where there is little, if any, market activity for the asset or liability.
 
   
June 30, 2019
   
December 31, 2018
 
Description
 
Level 1
   
Level 2
   
Level 3
   
Level 1
   
Level 2
   
Level 3
 
Cash and Investments held in Trust Account
  $
422,347,275
    $
-
    $
-
    $
418,727,517
    $
-
    $
-
 
 
XML 26 R15.htm IDEA: XBRL DOCUMENT v3.19.2
Significant Accounting Policies (Policies)
6 Months Ended
Jun. 30, 2019
Accounting Policies [Abstract]  
Basis of Accounting, Policy [Policy Text Block]
Basis of Presentation
 
The accompanying unaudited interim condensed financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and pursuant to the accounting and disclosure rules and regulations of the SEC, and reflect all adjustments, consisting only of normal recurring adjustments, which are, in the opinion of management, necessary for a fair presentation of the financial position as of
June 30, 2019
and the results of operations and cash flows for the period presented. Certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to such rules and regulations. Interim results are
not
necessarily indicative of results for a full year.
 
The accompanying unaudited interim condensed financial statements should be read in conjunction with the audited financial statements and notes thereto included in the final prospectus filed by the Company with the SEC on
April 16, 2018
and with the Company’s Annual Report on Form
10
-K filed with the SEC on
February 8, 2019.
Emerging Growth Company [Policy Text Block]
Emerging growth company
 
The Company is an "emerging growth company," as defined in Section
2
(a) of the Securities Act of
1933,
as amended, (the "Securities Act"), as modified by the Jumpstart our Business Startups Act of
2012,
(the "JOBS Act"), and it
may
take advantage of certain exemptions from various reporting requirements applicable to other public companies that are
not
emerging growth companies including, but
not
limited to,
not
being required to comply with the auditor attestation requirements of Section
404
of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments
not
previously approved.
 
Further, Section
102
(b)(
1
) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have
not
had a Securities Act registration statement declared effective or do
not
have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected
not
to opt out of such extended transition period which means when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This
may
make comparison of the Company's financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.
Earnings Per Share, Policy [Policy Text Block]
Net Income (Loss) Per Common Share
 
Net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. The Company has
not
considered the effect of the warrants sold in the Public Offering (including the over-allotment) and private placement warrants to purchase
20,700,000
and
10,280,000
shares of the Company’s Class A common stock, respectively, in the calculation of diluted income per share, since their inclusion would be anti-dilutive.
 
The Company’s statement of operations includes a presentation of net income per share for common shares subject to redemption in a manner similar to the
two
-class method of net income (loss) per share. Net income (loss) per common share for basic and diluted for Class A common stock is calculated by dividing the interest income earned on the Trust Account, net of applicable administrative fees, franchise taxes and income taxes, by the weighted average number of Class A common stock since issuance. Net loss per common share for basic and diluted for Class B common stock is calculated by dividing the net loss, which excludes income attributable to Class A common stock, by the weighted average number of Class B common stock outstanding for the period. 
Cash and Cash Equivalents, Policy [Policy Text Block]
Cash and cash equivalents
 
The Company considers all short-term investments with an original maturity of
three
months or less when purchased to be cash equivalents. The Company did
not
have any cash equivalents as of
June 30, 2019
or
December 31, 2018. 
Investment, Policy [Policy Text Block]
Cash and Marketable Securities held in the Trust Account
 
The amounts held in the Trust Account represent proceeds from the Public Offering and the private placement of private placement warrants of
$414,000,000
which were invested in permitted United States “government securities” within the meaning of Section
2
(a)(
16
) of the Investment Company Act of
1940,
as amended (the “Investment Company Act”), having a maturity of
180
days or less, or in money market funds meeting certain conditions under Rule
2a
-
7
under the Investment Company Act (“Permitted Investments”) and are classified as restricted assets because such amounts can only be used by the Company in connection with the consummation of an initial Business Combination.
 
As of
June 30, 2019,
and
December 31, 2018,
cash and Permitted Investments held in the Trust Account had a fair value of
$422,347,275
and
$418,727,517,
respectively. For the
three
months and
six
months ended
June 30, 2019,
investments held in the Trust Account generated interest income of
$2,592,502
and
$5,027,471,
respectively. From the IPO Closing Date through
June 30, 2019,
the Company paid
$2,135,000
to the IRS, with funds received from the Trust Account, for estimated federal income taxes. From the IPO Closing Date through
June 30, 2019,
the Company paid
$120,000
to an affiliate of our Sponsor, with funds received from the Trust Account, for administrative services.
Redeemable Common Stock Policy [Policy Text Block]
Redeemable Common Stock
 
As discussed in Note
1,
all of the
41,400,000
Public Shares contain a redemption feature which allows for the redemption of Class A Common Stock under the Company’s liquidation or tender offer/stockholder approval provisions. In accordance with FASB ASC
480,
redemption provisions
not
solely within the control of the Company require the security to be classified outside of permanent equity. Ordinary liquidation events, which involve the redemption and liquidation of all of the entity’s equity instruments, are excluded from the provisions of FASB ASC
480.
Although the Company has
not
specified a maximum redemption threshold, its amended and restated certificate of incorporation provides that in
no
event will the Company redeem its Public Shares in an amount that would cause its net tangible assets to be less than
$5,000,001.
 
The Company recognizes changes in redemption value immediately as they occur and will adjust the carrying value of the security at the end of each reporting period. Increases or decreases in the carrying number of redeemable shares of Class A Common Stock shall be affected by charges against additional paid-in capital.
 
Accordingly, at
June 30, 2019,
the
41,400,000
shares of Class A Common Stock were classified outside of permanent equity at approximately
$10.00
per share.
Concentration Risk, Credit Risk, Policy [Policy Text Block]
Concentration of credit risk
 
Financial instruments that potentially subject the Company to concentration of credit risk consist of a cash account in a financial institution which, at times
may
exceed the Federal depository insurance coverage of
$250,000.
At
June 30, 2019,
the Company had
not
experienced losses on this account and management believes the Company is
not
exposed to significant risks on such account.
Use of Estimates, Policy [Policy Text Block]
Use of estimates
 
The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates.
Fair Value of Financial Instruments, Policy [Policy Text Block]
Fair value of financial instruments
 
The fair value of the Company's assets and liabilities, which qualify as financial instruments under ASC Topic
820,
"Fair Value Measurements and Disclosures", approximates the carrying amounts represented in the accompanying balance sheets, primarily due to their short-term nature.
Offering Costs [Policy Text Block]
Offering Costs
 
The Company complies with the requirements of FASB ASC
340
-
10
-
S99
-
1
and SEC Staff Accounting Bulletin (“SAB”) Topic
5A
– “Expenses of
Offering”. Offering costs of
$9,506,582
consisting principally of underwriting discounts of
$8,280,000
and
$1,226,582
of professional, printing, filing, regulatory and other costs incurred through the date of the financial statements directly related to the preparation of the Public Offering were charged to stockholders' equity upon completion of the Public Offering (See Note
3
).
Income Tax, Policy [Policy Text Block]
Income taxes
 
The Company follows the asset and liability method for accounting for income taxes under FASB ASC
740
- "Income Taxes." Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that included the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.
 
FASB ASC
740
prescribes a recognition threshold and a measurement attribute for financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than
not
to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were
no
unrecognized tax benefits and
no
amounts accrued for interest and penalties as of
June 30, 2019
and
December 31, 2018.
The Company is currently
not
aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception.  
Related Party Policy [Policy Text Block]
Related Parties
 
The Company follows subtopic ASC
850
-
10
for the identification of related parties and disclosure of related party transactions.
 
Pursuant to Section
850
-
10
-
20,
the related parties include: (a) affiliates of the Company (“Affiliate” means, with respect to any specified person, any other person that, directly or indirectly through
one
or more intermediaries, controls, is controlled by or is under common control with such person, as such terms are used in and construed under Rule
405
under the Securities Act); (b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section
825
-
10
-
15,
to be accounted for by the equity method by the investing entity; (c) trusts for the benefit of employees, such as pension and profit-sharing thrust that are managed by or under the trusteeship of management; (d) principal owners of the Company; (e) management of the Company; (f) other parties with which the Company
may
deal if
one
party controls or can significantly influence the management or operating policies of the other to an extent that
one
of the transacting parties might be prevented from fully pursuing its own separate interests; and (g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in
one
of the transacting parties and can significantly influence the other to an extent that
one
or more of the transacting parties might be prevented from fully pursuing its own separate interests.
New Accounting Pronouncements, Policy [Policy Text Block]
Recent Accounting Pronouncements
 
The Company has evaluated recently issued, but
not
yet effective, accounting pronouncements and does
not
believe they would have a material effect on the Company's financial statements.
Subsequent Events, Policy [Policy Text Block]
Subsequent Events
 
The Company evaluates subsequent events and transactions that occur after the balance sheet date for potential recognition or disclosure. Any material events that occur between the balance sheet date and the date the financial statements were issued are disclosed as subsequent events, while the financial statements are adjusted to reflect any conditions that existed at the balance sheet date.
XML 27 R16.htm IDEA: XBRL DOCUMENT v3.19.2
Note 7 - Fair Value Measurements (Tables)
6 Months Ended
Jun. 30, 2019
Notes Tables  
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block]
   
June 30, 2019
   
December 31, 2018
 
Description
 
Level 1
   
Level 2
   
Level 3
   
Level 1
   
Level 2
   
Level 3
 
Cash and Investments held in Trust Account
  $
422,347,275
    $
-
    $
-
    $
418,727,517
    $
-
    $
-
 
XML 28 R17.htm IDEA: XBRL DOCUMENT v3.19.2
Note 1 - Description of Organization and Business Operations (Details Textual) - USD ($)
6 Months Ended
Apr. 17, 2018
Apr. 13, 2018
Jun. 30, 2019
Jun. 30, 2018
Mar. 31, 2019
Apr. 30, 2018
Mar. 31, 2018
Sale of Stock, Price Per Share $ 10            
Class of Warrant or Right, Exercise Price of Warrants or Rights $ 11.50            
Proceeds from Issuance Initial Public Offering $ 414,000,000   $ 414,000,000      
Payment to Affiliates Per Month From Interest Earned 10,000            
Minimum Net Tangible Assets 5,000,001            
Potential Payments for Dissolution Expenses if Business Combination not Completed $ 50,000            
Maximum [Member]              
Investment Maturity, Term 180 days            
Payment Period to Related Party 1 year 180 days 1 year 180 days          
Liquidation Expenses Conditional on Inability to Consummate Business Combination $ 50,000            
Minimum [Member]              
Redemption Value, After Payment of Accrued Income Taxes and Other Expenses     $ 10        
HighPeak and the Sponsor [Member]              
Class of Warrant or Right, Exercise Price of Warrants or Rights $ 11.50   $ 11.50        
Proceeds from Issuance of Private Placement $ 10,280,000   $ 10,280,000        
IPO [Member]              
Stock Issued During Period, Shares, New Issues 41,400,000            
Sale of Stock, Price Per Share $ 10            
Private Placement [Member]              
Class of Warrant or Right, Exercise Price of Warrants or Rights $ 1   $ 1   $ 1   $ 1
Class of Warrant or Right, Number of Securities Called by Warrants or Rights 10,280,000   10,280,000       10,280,000
Private Placement [Member] | Maximum [Member]              
Convertible Debt, Total $ 1,500,000       $ 1,500,000    
Private Placement [Member] | HighPeak and the Sponsor [Member]              
Class of Warrant or Right, Exercise Price of Warrants or Rights $ 1         $ 10  
Class of Warrant or Right, Number of Securities Called by Warrants or Rights 10,280,000         7,500,000  
XML 29 R18.htm IDEA: XBRL DOCUMENT v3.19.2
Note 2 - Significant Accounting Policies (Details Textual) - USD ($)
3 Months Ended 6 Months Ended 14 Months Ended
Apr. 17, 2018
Jun. 30, 2019
Mar. 31, 2019
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Dec. 31, 2018
Cash Equivalents, at Carrying Value, Total   $ 0   $ 0   $ 0 $ 0
Assets Held-in-trust, Noncurrent   422,347,275   422,347,275   422,347,275 418,727,517
Investment Income Held in Trust Account   2,592,502   5,027,471      
Income Taxes Paid       1,165,000 2,135,000  
Payments for Administrative Services, Related Party           120,000  
Maximum Redemption Threshold That Would Cause Net Tangible Assets   5,000,001   5,000,001   5,000,001  
Payments of Stock Issuance Costs $ 9,506,582            
Payments for Underwriting Expense 8,280,000     $ 8,280,000    
Professional, Printing, Filing, Regulatory, And Other Costs $ 1,226,582            
Unrecognized Tax Benefits, Ending Balance   0   0   0 0
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total   $ 0   $ 0   $ 0 $ 0
Common Class A [Member]              
Stock Issued During Period, Shares, New Issues       41,400,000      
Temporary Equity, Redemption Price Per Share   $ 10   $ 10   $ 10 $ 10
US Treasury Securities [Member]              
Investment in Trust Account     $ 414,000,000        
IPO [Member]              
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount     20,700,000        
Stock Issued During Period, Shares, New Issues 41,400,000            
Private Placement [Member]              
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount     10,280,000        
XML 30 R19.htm IDEA: XBRL DOCUMENT v3.19.2
Note 3 - Public Offering and Private Placement (Details Textual) - USD ($)
6 Months Ended
Apr. 17, 2018
Jun. 30, 2019
Jun. 30, 2018
Mar. 31, 2019
Apr. 30, 2018
Mar. 31, 2018
Sale of Stock, Price Per Share $ 10          
Proceeds from Issuance Initial Public Offering $ 414,000,000 $ 414,000,000      
Class of Warrant or Right, Exercise Price of Warrants or Rights $ 11.50          
Class of Warrant Or Right, Redemption Price Per Share $ 0.01          
Class of Warrant Or Right, Redemption Period 30 days          
Class of Warrant Or Right, Redemption, Stock Price Trigger $ 18          
Purchase Price of Public Warrant for Sponsor Committed to Offer or Cause Affiliate $ 1 $ 1        
Percentage of Public Shares Would Affect From Redemption Upon Meeting of Conditions of Business Combinations 100.00%          
HighPeak and the Sponsor [Member]            
Class of Warrant or Right, Exercise Price of Warrants or Rights $ 11.50 11.50        
IPO [Member]            
Units Issued During Period 41,400,000          
Sale of Stock, Price Per Share $ 10          
Underwriting Discount 2.00%          
Overallotment [Member]            
Units Issued During Period 5,400,000          
Private Placement [Member]            
Class of Warrant or Right, Exercise Price of Warrants or Rights $ 1 $ 1   $ 1   $ 1
Class of Warrant or Right, Number of Securities Called by Warrants or Rights 10,280,000 10,280,000       10,280,000
Private Placement [Member] | HighPeak and the Sponsor [Member]            
Class of Warrant or Right, Exercise Price of Warrants or Rights $ 1       $ 10  
Class of Warrant or Right, Number of Securities Called by Warrants or Rights 10,280,000       7,500,000  
XML 31 R20.htm IDEA: XBRL DOCUMENT v3.19.2
Note 4 - Related Party Transactions (Details Textual)
1 Months Ended 3 Months Ended 6 Months Ended 14 Months Ended
Apr. 17, 2018
USD ($)
$ / shares
shares
Apr. 13, 2018
USD ($)
Jan. 05, 2018
USD ($)
Nov. 13, 2017
USD ($)
$ / shares
shares
Apr. 30, 2018
USD ($)
$ / shares
shares
Mar. 31, 2018
USD ($)
$ / shares
shares
Jun. 30, 2019
USD ($)
$ / shares
shares
Mar. 31, 2019
USD ($)
$ / shares
shares
Jun. 30, 2018
USD ($)
Jun. 30, 2019
USD ($)
$ / shares
shares
Jun. 30, 2018
USD ($)
Jun. 30, 2019
USD ($)
$ / shares
shares
Dec. 31, 2018
$ / shares
shares
Dec. 16, 2017
USD ($)
Sale of Stock, Price Per Share | $ / shares $ 10                          
Stock Issued During Period, Value, New Issues | $                 $ 414,000,000          
Number of Shares Transferred to Each Independent Director Nominees | shares           40,000                
Number of Independent Directors           3                
Number of Shares Transferred to Independent Director Nominees | shares           120,000                
Founders' Shares, Stock Price Threshold to Relieve Trading Restrictions | $ / shares               $ 12            
Proceeds from Notes Payable, Total | $                   $ 200,000      
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares 11.50                          
Number of Affiliates   1                        
Monthly Agreed Payment Amount to Related Party | $   $ 10,000                        
Administrative Expenses | $             $ 30,000   $ 26,000 $ 60,000 $ 26,000      
Payments for Administrative Services, Related Party | $                       $ 120,000    
Business Combination Completion Period From Closing of Public Offering                   1 year 180 days        
Purchase Price of Public Warrant for Sponsor Committed to Offer or Cause Affiliate | $ / shares $ 1           $ 1     $ 1   $ 1    
Percentage of Public Shares Would Affect From Redemption Upon Meeting of Conditions of Business Combinations 100.00%                          
Warrant Price Transferred to Public Holders in Event of Business Combination Not Closed Within Allotted Time | $ / shares               1            
Private Placement [Member]                            
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares $ 1         $ 1 $ 1 $ 1   $ 1   $ 1    
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares 10,280,000         10,280,000 10,280,000     10,280,000   10,280,000    
Maximum [Member]                            
Payment Period to Related Party 1 year 180 days 1 year 180 days                        
Maximum [Member] | Private Placement [Member]                            
Convertible Debt, Total | $ $ 1,500,000             $ 1,500,000            
Sponsor [Member]                            
Proceeds from Notes Payable, Total | $     $ 200,000                      
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares                         $ 1  
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares                         10,280,000  
Business Combination Completion Period From Closing of Public Offering               1 year 180 days            
Purchase Price of Public Warrant for Sponsor Committed to Offer or Cause Affiliate | $ / shares               $ 1            
Percentage of Public Shares Would Affect From Redemption Upon Meeting of Conditions of Business Combinations               100.00%            
Sponsor [Member] | Maximum [Member]                            
Notes Payable, Total | $                           $ 200,000
HighPeak and the Sponsor [Member]                            
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares $ 11.50           $ 11.50     $ 11.50   $ 11.50    
Proceeds from Issuance of Private Placement | $ $ 10,280,000                 $ 10,280,000        
HighPeak and the Sponsor [Member] | Private Placement [Member]                            
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares $ 1       $ 10                  
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares 10,280,000       7,500,000                  
HighPeak and the Sponsor [Member] | Maximum [Member] | Private Placement [Member]                            
Aggregate Price Under Forward Purchase Agreement | $         $ 150,000,000                  
Affiliate Of Sponsor [Member]                            
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares         $ 1                  
Escrow Deposit | $         $ 20,700,000                  
Founders [Member]                            
Percentage of Founders Shares Remains Not Transferred Assigned Sold Subject to Certain Limited Exception               50.00%            
Minimum Period Required to Transfer Assign Sale of Founders Shares After Date of Consummation of Initial Business Acquisition               1 year            
Common Class B [Member]                            
Stock Issued During Period, Shares, New Issues | shares       10,062,500                    
Sale of Stock, Price Per Share | $ / shares       $ 0.002                    
Stock Issued During Period, Value, New Issues | $       $ 25,000                    
Common Stock Shares Forfeiture Cost | $           $ 0                
Common Stock Shares Forfeiture | shares           1,437,500                
Shares, Outstanding, Ending Balance | shares           8,625,000                
Common Stock Dividend Rate, Percentage         20.00%                  
Common Stock, Shares, Outstanding, Ending Balance | shares         10,350,000   10,350,000     10,350,000   10,350,000 10,350,000  
Equity Method Investment, Ownership Percentage               20.00%            
Shares Issued, Shares, Share-based Payment Arrangement, Forfeited | shares               0            
Common Class A [Member]                            
Stock Issued During Period, Shares, New Issues | shares                   41,400,000        
Common Stock, Shares, Outstanding, Ending Balance | shares             0     0   0 0  
Common Class A [Member] | HighPeak Energy Partners Limited Partners [Member] | Maximum [Member] | Private Placement [Member]                            
Stock Issued During Period, Shares, New Issues | shares         15,000,000                  
XML 32 R21.htm IDEA: XBRL DOCUMENT v3.19.2
Note 5 - Commitments and Contingencies (Details Textual)
6 Months Ended
Jun. 30, 2019
Public Offering Fee Percentage 3.50%
XML 33 R22.htm IDEA: XBRL DOCUMENT v3.19.2
Note 6 - Stockholders' Equity (Details Textual) - $ / shares
Jun. 30, 2019
Dec. 31, 2018
Apr. 30, 2018
Preferred Stock, Shares Authorized 1,000,000 1,000,000  
Preferred Stock, Par or Stated Value Per Share $ 0.0001 $ 0.0001  
Preferred Stock, Shares Outstanding, Ending Balance 0 0  
Preferred Stock, Shares Issued, Total 0 0  
Common Class A [Member]      
Common Stock, Shares Authorized 200,000,000 200,000,000  
Common Stock and Temporary Equity, Shares, Outstanding, Ending Balance 41,400,000 41,400,000  
Common Stock, Shares, Outstanding, Ending Balance 0 0  
Common Stock, Shares, Issued, Total 0 0  
Common Class B [Member]      
Common Stock, Shares Authorized 15,000,000 15,000,000  
Common Stock, Shares, Outstanding, Ending Balance 10,350,000 10,350,000 10,350,000
Common Stock, Shares, Issued, Total 10,350,000 10,350,000  
XML 34 R23.htm IDEA: XBRL DOCUMENT v3.19.2
Note 7 - Fair Value Measurements - Summary of Assets Measured on Recurring Basis (Details) - Cash and Investments Held in Trust Account [Member] - Fair Value, Recurring [Member] - USD ($)
Jun. 30, 2019
Dec. 31, 2018
Fair Value, Inputs, Level 1 [Member]    
Cash and Investments held in Trust Account $ 422,347,275 $ 418,727,517
Fair Value, Inputs, Level 2 [Member]    
Cash and Investments held in Trust Account
Fair Value, Inputs, Level 3 [Member]    
Cash and Investments held in Trust Account
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