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Public Offering
9 Months Ended
Dec. 31, 2019
Public Offering [Abstract]  
Public Offering

Note 3 —Public Offering

 

Public Unit

 

On February 19, 2020, the Company sold 5,750,000 units at a price of $10.00 per Public Unit in the public offering (which includes the full exercise of the underwriter's over-allotment option). Each Unit consists of one share of ordinary shares in the Company, one warrant ("Warrant") and one right ("Right") (see Note 7).

 

The Company paid an up-front underwriting discount of $1,725,000 (3.0%) of the per unit offering price to the underwriter at the closing of the public offering, with an additional fee of $1,437,500 (the "Deferred Discount") of 2.5% of the gross offering proceeds payable upon the Company's completion of the Business Combination. The Deferred Discount will become payable to the underwriter from the amounts held in the Trust Account solely in the event the Company completes its Business Combination. In the event that the Company does not close a Business Combination, the underwriter has waived its right to receive the Deferred Discount. The underwriter is not entitled to any interest accrued on the Deferred Discount.

 

Purchase Option

 

On February 19, 2020, the Company sold to the underwriters, for $100, a unit purchase option to purchase up to a total of 316,250 units at $11.50 per Unit (or an aggregate exercise price of $3,636,875) commencing on the close of the consummation of a Business Combination. The unit purchase option expires on February 19, 2025. The units issuable upon exercise of this option are identical to the Units being offered in the public offering. The Company has agreed to grant to the holders of the unit purchase option, demand and "piggy back" registration rights for periods of five and seven years, respectively, from February 19, 2020, including securities directly and indirectly issuable upon exercise of the unit purchase option.

 

The Company has accounted for the fair value of the unit purchase option, inclusive of the receipt of a $100 cash payment, as an expense of the public offering resulting in a charge directly to shareholders' equity. The Company estimates that the fair value of this unit purchase option is approximately $428,906 using a Black-Scholes option-pricing model adjusted for the likelihood of a completed Business Combination. The fair value of the unit purchase option granted to the placement agent is estimated as of the date of grant using the following assumptions: (1) expected volatility of 31.00%, (2) risk-free interest rate of 2.19% and (3) expected life of five years, (4) estimated possibility of 52.1% for consummation of initial Business Combination.