Parabellum Acquisition Corp. (OTC:PRBM) announced this morning that its business combination with internet of things (IoT) device-maker EnOcean has been terminated and it will now liquidate its trust.
On April 28, EnOcean delivered a termination letter to the SPAC announcing that it was exercising its right to terminate the deal, but did not provide further information about the breakup. However, as part of the Business Combination Agreement, EnOcean was allowed to terminate the deal if on or prior to February 28, 2023, Parabellum failed to deliver PIPE Subscription Agreements for an aggregate amount of at least $30,000,000.
Parabellum originally brought about $146.5 million into the deal through its trust, but saw 83.07% redeemed in a previous meeting, leaving it with $24.78 million post-vote. The SPAC planned to supplement this with up to $40 million in additional financing before close and expected to raise $23.7 million in additional outside funding.
The parties announced the $167 million deal in November 2022. Oberhaching, Germany-based EnOcean makes low-power IoT devices for smart buildings and offices.
Parabellum has a completion deadline of May 30, but now that the deal is officially terminated, PRBM is no longer searching to combine with alternative targets as it has determined it will not be able to complete a transaction in time.
As a result, the SPAC will now start the process of dissolving and liquidating its assets. Parabellum will redeem all of the outstanding shares and its sponsor will no longer deposit the necessary monthly funds to the trust to extend its timeline.
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