DiamondHead Holdings Corp. announced that it has entered into an agreement for a private placement of 5,333,333 pre-paid warrants at a price of $1.5 per warrant for gross proceeds of $8,000,000 on January 8, 2021. The transaction will include participation from returning investor, DHP SPAC-II Sponsor LLC, certain funds and accounts managed by BlackRock, Inc. (NYSE:BLK) and Millennium Management LLC.

The company will issue additional 600,000 warrants if the underwriters' over-allotment option is exercised in full. Each warrant is exercisable at $11.5 per class A share, subject to adjustments. The transaction will close concurrently with public offering.

The private placement warrants will be non-redeemable. The warrants will not be transferable, assignable or salable until 30 days after the completion of our initial business combination.