Item 8.01. Other Events.
On February 1, 2021, Ignyte Acquisition Corp. (the “Company”) consummated its initial public offering (“IPO”) of 5,000,000 units (“Units”). Each Unit consists of one share of common stock of the Company, $0.0001 par value per share (“Common Stock”), and one-half of one redeemable warrant (“Warrant”), with each whole Warrant entitling the holder to purchase one share of Common Stock at a price of $11.50 per share. The Units were sold at an offering price of $10.00 per Unit, generating gross proceeds of $50,000,000.
Simultaneously with the consummation of the IPO, the Company consummated the private placement (“Private Placement”) of 2,350,000 Warrants (“Private Warrants”) at a price of $1.00 per Private Warrant, generating total proceeds of $2,350,000, to Ignyte Sponsor LLC (“Sponsor”). The Private Warrants are identical to the Warrants underlying the Units sold in the IPO, except that the Private Warrants are non-redeemable and may be exercised on a cashless basis, in each case so long as they continue to be held by the initial purchasers or their permitted transferees. Further, the Sponsor has agreed not to transfer, assign, or sell the Private Warrants (including the shares of Common Stock issuable upon the exercise of the Private Warrants), except to certain permitted transferees, until after the consummation of the Company’s initial business combination.
On February 2, 2021, the Company consummated the closing of the sale of an additional 750,000 Units (“Option Units”) at $10.00 per Option Unit, pursuant to the underwriters’ exercise in full of their over-allotment option, generating gross proceeds of $7,500,000. The Company also consummated the closing of the sale of an additional 150,000 Private Warrants at $1.00 per Private Warrant, generating gross proceeds of $150,000, to the Sponsor in respect of its obligation to purchase such additional Private Warrants upon the exercise of the underwriters’ over-allotment option.
Of the gross proceeds of the IPO and Private Placement, including the sale of the Option Units and additional Private Warrants, an aggregate of $57,500,000 was deposited into a trust account with Continental Stock Transfer & Trust Company acting as trustee.
An audited balance sheet as of February 1, 2021 reflecting receipt of the proceeds in connection with the consummation of the IPO and the Private Placement has been issued by the Company and is included as Exhibit 99.1 to this Current Report on Form 8-K. A copy of the press release issued by the Company announcing the consummation of the sale of Units, Option Units, and Private Warrants is included as Exhibit 99.2.