Do you think the only way for BETR to keep from just shutting down was to clean up the cap table by going public, thus wiping away the special terms of the preferred shares? I can’t imagine any more private money would have been invested without cramming down the previous investors.
Doing a recap privately might have been a better solution though. The SPAC investors are pretty screwed in this case. I suppose the hope was that the pre-IPO investors can recoup some of their investments but in this case, practically there doesn't seem to be a difference from a private recap.
Do you think the only way for BETR to keep from just shutting down was to clean up the cap table by going public, thus wiping away the special terms of the preferred shares? I can’t imagine any more private money would have been invested without cramming down the previous investors.
Doing a recap privately might have been a better solution though. The SPAC investors are pretty screwed in this case. I suppose the hope was that the pre-IPO investors can recoup some of their investments but in this case, practically there doesn't seem to be a difference from a private recap.
Yeah, but maybe they couldn’t get the investors to agree to the private recap so going public and wiping out the pref stack was the only way forward.