Columbus Acquisition Corp Announces Pricing of $60 Million Initial Public Offering

Rhea-AI Summary

Columbus Acquisition Corp has announced the pricing of its initial public offering (IPO) of 6,000,000 units at $10.00 per unit, totaling $60 million. Each unit comprises one ordinary share and one right to receive one-seventh of an ordinary share upon completing an initial business combination.

The units will trade on Nasdaq Global Market under symbol COLAU starting January 23, 2025, with ordinary shares and rights later trading separately under COLA and COLAR respectively. The offering is set to close on January 24, 2025. The company granted underwriters a 45-day option to purchase up to 900,000 additional units to cover over-allotments.

A.G.P./Alliance Global Partners serves as the sole book-running manager, with The Benchmark Company as co-manager for the offering.

Positive

• IPO raising $60 million through 6,000,000 units at $10.00 each
• Listing on major exchange (Nasdaq Global Market)
• 45-day over-allotment option for additional 900,000 units

Negative

• Blank check company structure carries inherent investment risks
• Dilutive effect of rights conversion (1/7 additional share per right)

Insights

SPAC Financial Analyst

Columbus Acquisition Corp's $60 million SPAC IPO enters the market at a challenging time for blank check companies. The relatively modest size of this offering - significantly smaller than the $200-300 million typical during the 2020-2021 SPAC boom - reflects the current market's more cautious approach to blank check vehicles.

The unit structure warrants attention: Each $10 unit includes one share plus one right to receive 1/7th of a share post-merger. This rights structure, while less common than traditional warrants, can be more shareholder-friendly as it provides guaranteed additional equity without dilutive exercise prices. However, the 1/7th ratio is notably conservative compared to the 1/10th or 1/8th ratios seen in many SPACs.

For investors, several factors merit consideration:

• The $60 million trust size limits the scope of potential acquisition targets to smaller private companies, typically valued between $200-400 million
• The involvement of A.G.P. as lead underwriter, known for smaller-cap deals, suggests a focus on emerging growth sectors
• The 45-day over-allotment option for 900,000 additional units could potentially increase the trust to $69 million if fully exercised

While the offering follows standard SPAC mechanics, its modest size and rights-based structure reflect broader market adaptation to post-boom dynamics, where smaller, more focused vehicles are becoming the norm. This approach may actually benefit investors by reducing competitive pressure for deals and allowing for more selective target acquisition strategies.

New York, Jan. 22, 2025 (GLOBE NEWSWIRE) -- Columbus Acquisition Corp (the “Company”), a blank check company incorporated in the Cayman Islands, today announced the pricing of its initial public offering of 6,000,000 units at a price of $10.00 per unit. Each unit consists of one ordinary share and one right to receive one-seventh of one ordinary share upon consummation of an initial business combination. The units are expected to trade on The Nasdaq Global Market (“NASDAQ”) under the ticker symbol “COLAU” beginning January 23, 2025. Once the securities comprising the units begin separate trading, the ordinary shares and rights are expected to be listed on NASDAQ under the symbols “COLA” and “COLAR,” respectively. The offering is expected to close on January 24, 2025, subject to customary closing conditions.

The Company has granted the underwriters a 45-day option to purchase up to 900,000 units at the initial public offering price to cover over-allotments, if any.

A.G.P./Alliance Global Partners is acting as the sole book-running manager for the offering. The Benchmark Company, LLC is acting as the co-manager for the offering.

A registration statement relating to the securities, as amended (File No. 333-283278) was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on January 22, 2025. The offering is being made only by means of a prospectus forming part of the effective registration statement. Electronic copies of the prospectus  may be obtained from A.G.P./Alliance Global Partners, 590 Madison Avenue, 28th Floor, New York, NY 10022, or by telephone at (212) 624-2060, or by email at prospectus@allianceg.com or by visiting EDGAR on the SEC’s website at www.sec.gov.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. No securities regulatory authority has either approved or disapproved of the contents of this press release.

About Columbus Acquisition Corp

The Company is a blank check company incorporated in the Cayman Islands, sponsored by Hercules Capital Management VII Corp, formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, recapitalization, reorganization or similar business combination with one or more businesses or entities. The Company intends to identify a prospective target business which will not be limited to a particular industry or geographic location.

Forward-Looking Statements

This press release contains statements that constitute “forward-looking statements,” including with respect to the initial public offering and search for an initial business combination. No assurance can be given that the offering discussed above will be completed on the terms described, or at all, or that the net proceeds of the offering will be used as indicated. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including those set forth in the Risk Factors section of the Company's registration statement and preliminary prospectus for the initial public offering filed with the SEC. Copies are available on the SEC’s website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

Contacts:

Columbus Acquisition Corp
Fen Zhang
Chairman and Chief Executive Officer
Email: eric.zhang@hercules.global
Tel: (+1) 949 899 1827

FAQ

When will Columbus Acquisition Corp (COLAU) begin trading on Nasdaq?

Columbus Acquisition Corp units will begin trading on Nasdaq Global Market under the symbol COLAU on January 23, 2025.

What is included in each COLAU IPO unit?

Each unit consists of one ordinary share and one right to receive one-seventh of an ordinary share upon consummation of an initial business combination.

What is the total value of Columbus Acquisition Corp's IPO?

The IPO is valued at $60 million, consisting of 6,000,000 units priced at $10.00 per unit.

What are the separate trading symbols for Columbus Acquisition Corp's securities?

Once securities begin separate trading, ordinary shares will trade under COLA and rights under COLAR on Nasdaq.

How many additional units can underwriters purchase through the over-allotment option?

Underwriters have a 45-day option to purchase up to 900,000 additional units at the initial public offering price.