Business
DiamondHead Holdings Corp. Announces PIPE Investment
NEW YORK--(BUSINESS WIRE)-- DiamondHead Holdings Corp., a Delaware corporation (Nasdaq: DHHC, DHHCU, DHHCW) (“DHHC”, the “Company” and, following the
About this update from United Homes Group, Inc
[{"type":"text","content":" NEW YORK--(BUSINESS WIRE)--\nDiamondHead Holdings Corp., a Delaware corporation (Nasdaq: DHHC, DHHCU, DHHCW) (“DHHC”, the “Company” and, following the completion of the Business Combination (as defined below), the “Issuer”), today announced that it has entered into a Convertible Note Purchase Agreement dated March 21, 2023, (the “Note Purchase Agreement”) among itself, Great Southern Homes, Inc., a South Carolina corporation (“GSH”) and a group of investors party to that agreement (the “Investors”). Pursuant to the Note Purchase Agreement, the Investors have agreed to purchase $80,000,000 in original principal amount of convertible promissory notes (the “Notes”) and 744,588 shares of Class A common stock (the “Shares”) in a private placement PIPE investment (the “PIPE Investment”) in connection with the previously announced business combination pursuant to which the Company will acquire GSH, and following which DHHC expects to be renamed United Homes Group, Inc. The aggregate gross amount of the PIPE Investment is $75,000,000.\n\nAs previously announced, on September 10, 2022, DHHC entered into a business combination agreement (the “Business Combination Agreement”), by and among the Company, GSH and Hestia Merger Sub, Inc., a South Carolina corporation and a wholly-owned subsidiary of DHHC (“Merger Sub”), pursuant to which Merger Sub will merge with and into GSH, with GSH surviving the merger and continuing as a wholly-owned subsidiary of DHHC (the “Business Combination”).\n\nThe closing of the Note Purchase Agreement is contingent upon the substantially concurrent consummation of the Business Combination and other customary closing conditions. The purpose of the PIPE Investment is to raise additional capital for use by the Issuer following the closing of the Business Combination. The proceeds of the PIPE Investment are expected to be used by DHHC to offset redemptions of Class A common stock in connection with the Business Combination, and may be used by DHHC to satisfy the Minimum Cash Condition set forth in the Business Combination Agreement.\n\nThe Notes mature five years from the date of the business combination, and bear interest at a rate of 15% per annum. The Notes are convertible into Class A common stock after the first anniversary of the issuance date at 80% of the then current trading price subject to a minimum conv...