Flame Acquisition Corp. (“Flame”) has officially received approval from its stockholders on all proposals concerning its impending merger with Sable Offshore Holdings, LLC (“Holdco”) and Sable Offshore Corp. (“Sable”), during a specially convened meeting held today. This endorsement marks a significant milestone, clearing the path for the anticipated merger, projected to be finalized by February 14, 2024, contingent upon meeting closing prerequisites. Following the merger, the consolidated entity will adopt the name Sable Offshore Corp. and is slated to debut its common stock and public warrants on the New York Stock Exchange under ticker symbols “SOC” and “SOC.WS,” respectively, commencing from February 15, 2024.
Flame, recognized as a special purpose acquisition company (SPAC), has been actively pursuing a merger strategy aimed at extending its operational footprint within North America. The establishment of Sable and Holdco was instrumental in facilitating the acquisition of the Santa Ynez Unit production unit and orchestrating the merger terms. Ahead of the business amalgamation, Flame disclosed possessing approximately $62.2 million in its trust account, a financial standing that emerged subsequent to the expiration of the deadline for stockholders to opt for redemptions of Flame common stock.
Key Points:
- Approval of Proposals: Flame’s stockholders have endorsed all proposals linked to the merger with Sable Offshore Holdings and Sable Offshore Corp. This formal approval is essential for progressing towards the merger, which is expected to finalize around February 14, 2024, provided that all closing conditions are met.
- Formation of Sable and Holdco: Sable Offshore Holdings and Sable Offshore Corp. were established to facilitate the acquisition of the Santa Ynez Unit production unit and negotiate the merger terms. These entities played a crucial role in the merger process.
- Post-Merger Operations and Listing: Following the merger, the newly combined entity will operate under the name Sable Offshore Corp. Its common stock and public warrants will be listed on the New York Stock Exchange under ticker symbols “SOC” and “SOC.WS” starting February 15, 2024.
- Financial Position: Flame disclosed having approximately $62.2 million in its trust account before the merger, which reflects the financial status post the deadline for stockholders to opt for redemptions of Flame common stock. This indicates the financial strength of the company post-merger.
What is Special Purpose Acquisition Company (SPAC)?
A Special Purpose Acquisition Company (SPAC) is a type of corporation established solely to raise investment capital through an initial public offering (IPO). It operates by allowing investors to contribute funds to a pool, which is then used to acquire unspecified businesses after the IPO. SPACs are often referred to as “blank-check companies” because they have no specific business operations and only hold the raised funds in trust until an acquisition is identified or a certain period elapses. If an acquisition isn’t completed within a set timeframe or if legal requirements aren’t met, the SPAC must return the funds to investors.
About Flame Acquisition Corp. (“Flame”)
Flame Acquisition Corp. is a recently established special purpose acquisition company (SPAC) organized as a Delaware corporation with the aim of executing various types of business combinations such as mergers, share exchanges, asset acquisitions, share purchases, reorganizations, or similar transactions with one or more businesses or entities.
While they have the flexibility to explore opportunities across different industries and locations, their current focus is on leveraging the expertise of their management team, particularly their President and CEO, James C. Flores, to identify, acquire, and manage businesses within the energy sector. Their target areas include upstream exploration and production (E&P), midstream operations, as well as companies developing innovative technologies that could revolutionize the energy industry and enhance profitability. They believe that their team’s extensive experience in acquiring and managing energy-related businesses, combined with the current challenges faced by the energy sector, presents a promising opportunity for executing a significant and beneficial business combination.
About Sable
Sable and Holdco are entities created for the specific task of assessing the potential to purchase a simplified production unit called the Santa Ynez Unit and discussing the associated terms.
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