DiamondHead Holdings Corp. announced that it expects to receive $78.72294 million in funding from Conversant Capital LLC, Jasper Lake Ventures One LLC, Hazelview Securities Inc.

DiamondHead Holdings Corp. announced that it has entered into convertible note purchase agreement with Great Southern Homes, Inc. for gross proceeds of $75 million in its debt round of funding on March 21, 2023. The principal amount of notes is $80 million and it will be issued at discount.

The transaction will include participation from Conversant Opportunity Master Fund LP; a fund managed by Conversant Capital LLC for $32,812,500, Dendur Master Fund Ltd. for 28,125,000, Jasper Lake Ventures One LLC for $9,375,000, and Hazelview Securities Inc. for $4,687,500. The company has issued convertible promissory notes. The Notes mature five years from the date of the business combination, and bear interest at a rate of 15% per annum.

The interest rate increases by 1% annually beginning on the fourth anniversary of the issue date of the Notes. The Notes are convertible into Class A common stock after the first anniversary of the issuance date at 80% of the then current trading price subject to a minimum conversion price of $5.00 and a maximum conversion price of $10.00.