Perella Weinberg Partners quarterly report, Q3 FY2020

Filing identity and reporting period

Important identity discrepancy: The supplied filing is FinTech Acquisition Corp. IV’s Form 10-Q for the quarter ended September 30, 2020, not a Perella Weinberg Partners filing. The summary below reflects the filing text provided.

FinTech Acquisition Corp. IV is a blank-check company formed to pursue a business combination. It had not begun operating activities or generated significant revenue by quarter-end.

Financial results and liquidity

  • Revenue: None to date. The company reported no operating revenue.
  • Net loss: $19,845 for the third quarter and $21,438 for the first nine months of 2020, primarily formation and general and administrative expenses, partly offset by $63 of trust-account interest. The comparable 2019 nine-month net loss was $969.
  • Cash flow: Operating activities used $33,116 in the first nine months of 2020. Financing activities provided $231.7 million, mainly from the public offering and private placement; $230.0 million was invested in the Trust Account.
  • Assets and liquidity: At September 30, cash outside the Trust Account was $1.63 million; Trust Account investments were $230.0 million. The company reported total assets of $231.7 million.
  • Liabilities and equity: Total liabilities were $9.82 million, including a $9.8 million deferred underwriting fee payable upon completion of a business combination. Redeemable Class A shares were classified as temporary equity at $216.85 million; stockholders’ equity was $5.00 million. No long-term debt was reported.
  • Margins: Not meaningful because the company had no revenue.

Material changes and financing

On September 29, 2020, the company completed its IPO of 23.0 million units at $10 per unit, including full exercise of the over-allotment option, for $230.0 million gross proceeds. It simultaneously sold 610,000 private placement units for $6.1 million. Of the combined proceeds, $230.0 million was placed in the Trust Account. Reported offering and transaction costs were $14.26 million, including $9.8 million of deferred underwriting fees.

Compared with December 31, 2019, cash and total assets increased substantially following the IPO. The company had no Trust Account investments at year-end 2019. Its $90,869 related-party promissory note was repaid at the IPO closing.

Outlook, risks, and unusual items

  • Management had not selected a target or begun substantive discussions with a target as of the filing. It expected continued costs while searching and did not assure that a business combination would be completed.
  • The company must complete a business combination by September 29, 2022 or liquidate and distribute the Trust Account, subject to applicable deductions and terms. A target must generally have fair market value of at least 80% of the Trust Account balance, net of specified items.
  • Management did not believe it then needed additional funds for planned expenditures, but warned that underestimated search or transaction costs, significant shareholder redemptions, or insufficient financing could prevent completion of a transaction.
  • COVID-19 could adversely affect the company’s financial position or target search; the specific effect was not determinable, and no related adjustment was recorded.
  • The filing identifies possible negative interest rates on Trust Account investments as a risk to the redemption value per public share.
  • The company pays the Sponsor or an affiliate $20,000 per month for administrative support from September 25, 2020 until a business combination or liquidation. The $9.8 million deferred underwriting fee is payable only if a business combination is completed.
  • Management reported effective disclosure controls as of September 30, 2020. No legal proceedings were reported.

Key facts for investors to verify

  1. Confirm the issuer: this text is for FinTech Acquisition Corp. IV, not Perella Weinberg Partners.
  2. Verify the status of any subsequent target search, business combination, redemptions, or extension of the September 29, 2022 deadline.
  3. Review the Trust Account balance and redemption terms, including the effects of taxes, negative yields, and any third-party claims.
  4. Assess potential dilution from founder shares, private placement securities, warrants, and any financing or securities issued in a business combination.
  5. Check the terms and potential funding availability of Sponsor or other working-capital loans, which may be converted into units.