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Redwire (RDW) - 2020 Q3 - Quarterly Report
RDWRedwire (RDW)2021-01-07 21:12

IPO and Financial Proceeds - The Company completed its IPO on November 27, 2020, raising gross proceeds of 163,776,220fromthesaleof16,377,622unitsatanofferingpriceof163,776,220 from the sale of 16,377,622 units at an offering price of 10.00 per unit[92]. - Following the IPO, 166,232,864wasplacedinatrustaccount,representingnetproceedsfromtheIPOandprivateplacement[102].TransactionCosts−TheCompanyincurredtransactioncostsof166,232,864 was placed in a trust account, representing net proceeds from the IPO and private placement[102]. Transaction Costs - The Company incurred transaction costs of 9,640,145, which included an underwriting discount of 3,275,524anddeferredunderwriter′sfeesof3,275,524 and deferred underwriter's fees of 5,732,168[101]. Financial Performance - As of September 30, 2020, the Company reported a net loss of 5,111,primarilyduetoformationcosts[97].−TheCompanyhasnotengagedinanyoperationsorgeneratedrevenuestodate,withexpectationstogeneratenon−operatingincomefrominterestonmarketablesecuritiesheldintheTrustAccount[95].CashandFinancingNeeds−TheCompanyheldnocashasofSeptember30,2020,relyingoninitialstockpurchasesandloansfromtheSponsortotaling5,111, primarily due to formation costs[97]. - The Company has not engaged in any operations or generated revenues to date, with expectations to generate non-operating income from interest on marketable securities held in the Trust Account[95]. Cash and Financing Needs - The Company held no cash as of September 30, 2020, relying on initial stock purchases and loans from the Sponsor totaling 65,000 to cover offering-related costs[98]. - The Company may need additional financing to complete a business combination or to meet obligations if cash on hand is insufficient[104]. - The Sponsor or its affiliates may provide loans to fund working capital deficiencies, with up to $1,500,000 of such loans convertible into warrants at the lender's option[103]. Risk and Investment Strategy - As of September 30, 2020, the Company was not subject to any market or interest rate risk, with plans to invest IPO proceeds in U.S. government treasury bills or money market funds[109]. Accounting Policies - The Company has not identified any critical accounting policies that could materially affect its financial statements[106].