SPACInsider Logo
Altitude Acquisition Corp. (ALTU) Increases Non-Redemption Agreement to Cover $15M
Altitude Acquisition Corp. (ALTU) Increases Non-Redemption Agreement to Cover $15M
by Nicholas Alan Clayton on 2022-10-06 at 7:15am

Altitude Acquisition Corp. (NASDAQ:ALTU) announced in an 8-K this morning that it has expanded its non-redemption agreement to cover about $15 million worth of shares.

A new shareholder has agreed to not to redeem 223,124 shares in connection with the today’s vote to extend the SPAC’s transaction deadline from October 11, to April 11, 2023. Altitude CEO Gary Teplis is to pay this shareholder $0.05 per share per month through the extended period in a single payment 45 days from the agreement’s start.

This is a slightly better deal than that received by the holders of 1,250,000 shares, who agreed not to redeem in connection with the SPAC’s June extension vote in exchange for $0.033 per share per month. Still, Altitude is hoping to keep a few more shares committed as it also announced this week that it intends to sign a letter of intent (LOI) to combine with a medical device manufacturer at an enterprise value of about $480 million.

Altitude said this target required the SPAC to maintain at least $20 million in cash available as a part of the deal. It initially raised $300 million in its December 2020 IPO, but saw this reduced to about $50.6 million after 83.1% of its shareholders opted to redeem at the earlier extension vote.

This teaser was announced right on the day of the SPAC’s redemption deadline and Altitude hopes it will have tempted holders of at least 10% of its remaining shares to stick through, allowing it to meet the target’s cash target.

If all goes well, the SPAC aims to announce an LOI with the target on Halloween, and a definitive agreement soon thereafter. Since this deal is not at the “definitive agreement” stage, and is still in the discussions stage, SPACInsider will not consider this deal “Announced”. As such, it will remain in the “Searching” category until a definitive agreement is signed.

Recent Posts
by Marlena Haddad on 2022-11-28 at 12:02am

  Below is a daily summary of links to the latest SPAC news and rumors gathered across the web.  Latest SPAC News:  Virgin Galactic appoints new top lawyer, Trump Media SPAC rises after investors approve merger deadline extension, and Al Maadeed to be first Qatari to list company on NYSE Virgin Galactic, Preparing for Liftoff,...

by Nicholas Alan Clayton on 2022-11-25 at 2:31pm

PMV Consumer (OTC PINK:PMVC) announced that it is redeeming all non-insider public shares for approximately $10.09 per share, but it will not be dissolving just yet. The SPAC is set to provide written redemption notices to each shareholder and trust proceeds are to be distributed within 30 days of these notices. PMV Consumer will then...

by Marlena Haddad on 2022-11-25 at 11:02am

  Below is a daily summary of links to the latest SPAC news and rumors gathered across the web.  Latest SPAC News: Ex-Marvel chief takes the wheel at Arrival, Paysafe plans reverse stock split, and Dave Inc. to pursue a bank charter Founder of troubled electric van maker Arrival steps aside as CEO The founder...

by Nicholas Alan Clayton on 2022-11-25 at 7:31am

Digital World (NASDAQ:DWAC) announced late Wednesday that its shareholders have approved amending its charter to allow for automatic three-month extensions of its transaction deadline until September 8, 2023. This brings to close a long drama during which Digital World adjourned the vote without concluding business six times at different meetings in September, October and November....

by Marlena Haddad on 2022-11-23 at 4:49pm

Venus Acquisition Corp. (NASDAQ:VENA) announced this afternoon that it has secured an investor for a backstop agreement in connection to its business combination with VIYI Algorithm. Venus and its sponsor, Yolanda Management Corporation, entered into a backstop agreement with Joyous JD Limited to purchase VENA shares from third parties through a broker in the open market, or...

Privacy Policy|Terms Of Use
Copyright © 2022 SPACInsider, Inc. All Rights Reserved