By Chris Wack
Horizon Acquisition Corp. shares were up 8% at $11.09 after the company said that Eldridge Industries LLC has entered into an agreement with DraftKings Inc. to make a private-placement investment in connection with the closing of the previously announced merger between Horizon and Vivid Seats.
Volume for the stock was 1.7 million shares at 12:20 p.m. ET, compared with its 65-day average volume of 479,000 shares. The stock hit its 52-week high of $11.78 earlier in the session.
The investment will be part of the previously announced private investment in public equity, or PIPE, financing for the transaction, with DraftKings assuming a portion of Eldridge's commitment.
The company said the closing of the investment is conditional on completion of the business combination between Horizon and Vivid Seats, which is subject to approval by Horizon's shareholders.
As part of the investment, Eldridge has agreed to provide DraftKings the option to sell its Vivid Seats shares to Eldridge on the business day following the first anniversary of Horizon and Vivid Seats's business combination closing at price of $9.77 a share, conditioned upon DraftKings continuously holding the Vivid Seats shares until such date and certain other terms and conditions.
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