March 30, 2020

GigCapital2 Issues Letter to Stockholders in Connection with the Filing of its Annual Report on Form 10-K

PALO ALTO, Calif.–(BUSINESS WIRE)–GigCapital2, Inc., (NYSE: GIX, GIX.U, GIX.RT, and GIX.WS), a Private-to-Public Equity (PPE)™ company created to enable an excellent late-stage growth private company primarily in the Technology, Media, and Telecommunications (TMT) markets to become public, today issued the following letter to its stockholders:

To Our Valued GigCapital2 (GIG2) Private-to-Public Equity (PPE)^™ SPAC Stockholders,

As we share this letter as part of our recently filed Annual Report on Form 10-K for fiscal year 2019, we collectively find ourselves in a time of significant global uncertainty and angst surrounding the COVID-19 pandemic. Here in the heart of Silicon Valley, as in many locations in the USA and around the globe, we have been under a shelter-in-place advisory since the middle of March with no timeline as to when the advisory will be lifted.

These are indeed extraordinary times for all of us.

With the COVID-19 pandemic being on top of mind for all of us, we wanted to reassure our stockholders that the pandemic has not impacted or hampered our business and our efforts to find an ideal partner for a business combination. Since the IPO of GIG2 in June of 2019, our team has literally contacted thousands of companies across all continents and various industries, and we constantly continue to expand our pipeline of potential combination targets.

That being said, we wanted to share with you some observations on the overall market conditions which may impact our efforts to quickly close a business combination:

• During this disruption in the capital markets, the traditional pathways to becoming a publicly traded company are constricted, more so within the universe of late-growth stage private companies that were actively entertaining the potential of going public by way of a combination with GIG2. For some of these companies, their business has been significantly impacted by the COVID-19 pandemic, and hence, they have reprioritized their activities to focus on tactical tasks and resource management while pushing out the option of becoming a public company to a later date.
• Also, as of this writing, the number of new Form S-1 registration statement filings with the SEC has declined dramatically. Many companies that were planning for an IPO are now in a holding pattern. This may lead to a greater interest in our Private-to-Public Equity (PPE) platform. Based on the growing awareness of GIG2 within the financial and business communities, we are more confident that our Private-to-Public Equity (PPE) platform is becoming an increasingly attractive vehicle for companies looking to go public. This is even more the case in these challenging times when the time to public trading initiation is even more critical.
• Our “IPO-in-a-box” Private-to-Public Equity (PPE) methodology provides an alternative to the lengthy traditional IPO process. Our process is relatively fast – certainly faster than the current conditions for going public if a company is just commencing the process – while we believe likely offering much lower risk for actually achieving a public listing. By design, the Private-to-Public Equity (PPE) method of becoming public will not disrupt the structure of a company, its growth trajectory nor the opportunity of the existing management to continue to operate a company in the manner that has contributed to its previous success.
• In addition to a speedy process to become public, companies partnering with GIG2 benefit from our management team and advisory board through our Mentor-Investor™ methodology. Our leadership team and advisory board members will partner with the combined company in a collaborative manner to bring significant management, operating, finance, deal-making and industry relationships that give any prospective combination partner many competitive advantages.
• Validating this process is the successful combination between GigCapital (GIG1) and Kaleyra S.p.A, now Kaleyra, Inc. (NYSE American: KLR) (KLR WS), which closed on November 25, 2019. Our platform provided the key benefit of preparing KLR to become a listed company on a US National Exchange and quickly becoming a publicly traded company. It also included invaluable assistance and guidance to the existing management before, through and following the combination, allowing them to continue focusing on their business and growing the enterprise.

While we continue to track and adapt to the rapidly changing market conditions, we want to emphasize that as a stockholder you should have confidence that you have invested in a resilient organization whose leadership is accustomed to rapid change and that has successfully navigated the last 40 years of both domestic and global economic, social and political turmoil. The team has sailed through “rough waters” in the past and is doing so again. In fact, the GigCapital Global team is busier than ever before in screening and engaging with an ever growing number of excellent technology companies world-wide, as we use the new reality of the shelter-in-place advisory to significantly enhance our effectiveness and bonding as a team.

We want to express our gratitude and thanks on behalf of the entire GigCapital Global team for your continued confidence and trust and wish for all of you, your families and friends safe and healthy days in the weeks to come.

Warmest Regards,

Dr. Raluca Dinu
Chief Executive Officer and President
GigCapital2, Inc

Dr. Avi Katz
Executive Chairman of the BOD
GigCapital2, Inc.