WOOD & Company launches the first SPAC in the CEE

WOOD & Company launches the first SPAC in the CEE

WOOD SPAC One a.s. (“WOOD SPAC One”), part of WOOD & Company group, has received formal prospectus approval from the Czech National Bank, to launch the first-ever Special Purpose Acquisition Company (SPAC) listing on the Prague Stock Exchange (“PSE”). WOOD SPAC One’s intention is to raise capital of between hundreds of millions and CZK 1bn. The book-building period will start on 10 February, and last until 1 April 2022. The commencement of trading on the PSE is scheduled for 11 April 2022. The minimum investment is CZK 250,200. WOOD SPAC One will be the first SPAC listing in the CEE region. WOOD & Company sees the SPAC as offering a refreshing boost for the PSE, which has a proven track record of introducing a diverse variety of stock issues. In the Western capital markets, approximately half of market listings of new issues are made through SPACs.

Having been announced last year, the first SPAC on the Prague Stock Exchange is now coming to fruition. WOOD SPAC One will be launched with the intention of raising capital of between hundreds of millions and CZK 1bn. The book-building period will start on 10 February, and is expected to last until 1 April 2022. The minimum investment ticket is CZK 250,200.

We are pleased to introduce this unique opportunity to participate in the first-ever SPAC listing on the Prague Stock Exchange and, through this vehicle, invest in a growing company in an attractive sector. This is an equity product with potentially very high returns, and with the benefit of active investor involvement in the decision-making process,” said Vladimír Jaroš, one of the transaction's sponsors, and WOOD & Company’s CEO.

The Prague Stock Exchange is the first institution in the CEE region to launch a SPAC. I am delighted that we are able to give Czech investors the chance to try this kind of investment. This flexible solution may bring any number of interesting issues to the PSE in the futuresaid Petr Koblic, PSE's General Director.

According to Vladimír Jaroš, a SPAC investment is suitable for investors with experience and a medium-term horizon of three-to-five years, who are looking for unique opportunities. A SPAC has a similar profile to a "private equity" type of investment, with the advantage that its shares and warrants will be traded on the Prague Stock Exchange from the time of the IPO, which should also support the liquidity of the investment.

A special purpose acquisition company, or SPAC, is an investment instrument that accelerates how a privately-owned company becomes listed on a stock exchange. Initially, it is an “empty”, publicly-traded company (a SPAC is often referred to as a “Blank Check Company“) that does not conduct any business activity at the time of listing. By issuing shares, such a company obtains the funding for an acquisition of a suitable privately-held target company. “We will be looking for a financially healthy, growing company that operates in CEE region, with a capable management and the appetite for future development and regional expansion. We want to look primarily among technology companies in the e-commerce or engineering sectorssaid Oliver Polyák, Investment Banking Manager at WOOD & Company.

WOOD SPAC One’s goal is to acquire a significant minority stake in such a company, to raise capital for its geographical expansion and the further development of the company’s business. According to Oliver Polyák, the bookbuilding period, which ends at the beginning of April, will be followed by a two-year period to find a suitable target, with a possible one-off extension of up to six months to complete the acquisition of the target company. Subsequently, the identified target company will be presented to WOOD SPAC One shareholders, who will vote on the proposed acquisition. If the transaction

is approved by the shareholders, the acquisition and listing of the target company will take place. Otherwise, the money will be returned to investors and WOOD SPAC One will be dissolved.

The SPAC will be managed by an experienced team from WOOD & Company, in cooperation with Oaklins, the world’s most experienced mid-market M&A advisors, which has already completed four SPAC transactions in the Netherlands and Italy. WOOD & Company has a proven track record in executing important M&A transactions in the CEE region. In 2020, for example, WOOD & Co. executed the successful IPO of Czech online pharmacy platform Pilulka. Legal advice on the SPAC transaction is being provided by KLB Legal.

WOOD & Company is a leading investment bank in the Central European market. Founded in 1991, it has offices in seven European cities: Prague, Bratislava, Warsaw, Milan, Bucharest, Dublin and London. It focuses on providing services in the areas of corporate finance and capital markets, securities trading and asset management.

Orders can be placed via the sales department of the Book runner, WOOD & Company Financial Services, a.s. More information is available at www.woodspac.cz, including the prospectus. Every potential investor is advised to become acquainted with the prospectus. Approval of the prospectus by CNB is a formality act and does not indicate any opinion about the project’s risks.

More information about WOOD & Company is available at wood.cz.