A greenshoe or an over-allotment option is the right given to the underwriters of a company’s public offering to sell an additional 15% of total shares in the offering. This will help the underwriters stabilize the price after the shares become eligible for public trading.

This additional 456,300 units brings total gross proceeds to 57th Street General Acquisition Corp. to $54,563,000. The company’s registration statement was declared effective by the Securities and Exchange Commission on May 19, 2010.

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The filings contain several structural changes to the SPAC, with the most prominent ones are the elimination of shareholder vote and proxy solicitation. Instead, the company will announce a merger within 15 months from the date of the prospectus. Along with the merger announcement, the SPAC will also announce a tender offer to accommodate shareholders who prefer to get their money back.

Another change included in the amendment is the increase in the number of insider warrant purchase from 3 million to 3,5 million. As a result, the total purchase price also rises to $1,750,000.

About The Company

57th Street General Acquisition Corp. is a Special Purpose Acquisition Company formed on October 29, 2009 for the purpose of acquiring, through a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, exchangeable share transaction or other similar business transaction.

The SPAC is headed by Mark D. Klein as  CEO, who also serves as a director of Great American Group, Inc.

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