Live Oak Acquisition Corp. V Adds Liquidation Preference Option to Teamshares Merger

TL;DR: Live Oak Acquisition Corp. V and Teamshares updated their merger agreement on May 13, 2026, letting certain preferred shareholders choose liquidation preference over conversion to common stock, with the election required before the stock exchange closes.

Context: Live Oak Acquisition Corp. V is a special purpose acquisition company (SPAC) that agreed to merge with Teamshares Inc., a provider of small‑business ownership platforms. The original merger, announced in late 2025, called for Teamshares preferred shares to be converted into Live Oak common stock at closing. Preferred shareholders typically receive no special payout rights in such conversions.

Key Facts: The second amendment, executed on May 13, 2026, adds a provision allowing certain Teamshares preferred stock holders to elect liquidation preference treatment instead of converting their shares to common stock. Liquidation preference gives those holders the right to be paid before common shareholders if the company is sold or liquidated. The amendment also clarifies that Teamshares must implement these liquidation preference elections before completing the preferred stock exchange.

What It Means: The change gives eligible Teamshares preferred investors a downside‑protection option, potentially making the deal more attractive to those who prefer cash‑like security over equity upside. It does not alter the conversion ratio for shareholders who do not elect the preference. The amendment reflects a negotiated balance between the SPAC’s need to close the merger and investors’ desire for risk mitigation.

Watch for how many Teamshares preferred holders elect the liquidation preference and whether the adjustment influences the final merger vote or any post‑closing share price movements.