Prospector Capital Corp. (PRSR)

Prospector Capital Corp. was a special purpose acquisition company led by former Qualcomm executives, with Derek Aberle as chief executive and Steve Altman as chairman. It was formed to merge with a company offering advanced, differentiated technology, and its units, Class A shares and warrants traded on NASDAQ under PRSRU, PRSR and PRSRW. Its sponsor team had long experience in wireless technology and licensing.

The SPAC raised its money in a 2021 initial public offering and held the proceeds in a trust account while it searched for a target. In June 2023 it agreed to combine with LeddarTech, a Quebec City company founded in 2007 that develops software for fusing and interpreting sensor data in driver assistance and autonomous driving systems, in a deal valued at about $348 million.

Prospector shareholders approved the transaction on December 13, 2023. Many holders redeemed their shares for cash, leaving about $14.6 million in the trust, which was combined with a $44 million convertible note financing. Investors who kept their shares received a bonus share for each share held. Redemptions left far less cash than the original trust held. The PIPE was arranged alongside the vote.

The merger closed on December 21, 2023, and Prospector's securities were replaced by those of LeddarTech Holdings Inc., which began trading on NASDAQ on December 22, 2023 under LDTC for shares and LDTCW for warrants. Prospector's units were retired and its shareholders became shareholders of LeddarTech Holdings. Prospector's sponsor shares were partly converted into special shares under the deal terms.