Yotta (YOTA) Addresses NaturalShrimp’s Unfulfilled Termination Fee
by Marlena Haddad on 2023-08-16 at 5:24pm

Yotta Acquisition Corp. (NASDAQ:YOTA) announced this afternoon in an 8-K filing that NaturalShrimp (OTCQB:SHMP) has not fulfilled its obligation to pay the termination fee following the cancellation of their proposed business combination.

It appears NaturalShrimp is in hot water after the company has failed to pay a $3 million fee as well as its portion of the costs associated with an extension, which were supposed to be shared equally between the two parties.

As a recap, on July 20, the land-based shrimp farm supplier officially notified Yotta of its termination of the merger agreement due to the SPAC’s alleged breach of certain representations in the agreement.

Specifically, NaturalShrimp claimed that Yotta’s inability to comply with the provision in its Amended and Restated Certificate of Incorporation, which mandates the possession of net tangible assets amounting to at least $5,000,001 upon consummation of the initial business combination, conflicts with the SPAC’s representation in the agreement that its actions would not contradict its organizational documents.

Additionally, NaturalShrimp cited delays in the SEC registration process. The SPAC was allegedly obligated to use its reasonable best efforts to execute all necessary actions to complete the transactions specified in the merger agreement.

But, Yotta is now fighting back by filing a termination of its own on August 10, and claims that the deal termination was due to breaches by its ex-target for failing to pay their share of contributions to the trust in connection with its extension.

Back in April, shareholders of the SPAC approved a proposal that extended the completion deadline by a full year, pushing it from April 22, 2023, to April 22, 2024. As a result, $120,000 per month was to be deposited into the trust account each month, with the payment intended to be divided equally.

NaturalShrimp has not responded to the termination letter and Yotta believes that the company does not have a legal basis under the agreement to terminate it.

The parties inked their $275 million deal in October 2022. Dallas-based NaturalShrimp is developing a series of land-based shrimp farms to supply the US food service market.

 

Recent Posts
by Kristi Marvin on 2023-09-22 at 5:34pm

Latest SPAC Liquidations: LF Capital Acquisition Corp. II LF Capital Acquisition Corp. II (LFAC) to Liquidate on October 3, 2023 LF Capital Acquisition Corp. II (Nasdaq: LFAC), today announced that the directors of the Company have determined to dissolve and liquidate the Company. The redemption of the Public Shares is expected to be completed on...

by Kristi Marvin on 2023-09-22 at 5:32pm

Latest Non-Redemption Agreements: Yotta Acquisition Corp.,Live Oak Crestview Climate Acquisition Corp. Yotta Acquisition Corp. (YOTA) Adds Non-Redemption Agreements Yotta Acquisition Corp. (NASDAQ:YOTA) entered into non-redemption agreements with certain unaffiliated third parties in exchange for such third parties agreeing not to redeem an aggregate of 598,680 shares of the Company’s common stock. In exchange for the foregoing...

by Kristi Marvin on 2023-09-22 at 5:23pm

Twin Ridge (NYSE:TRCA) announced this afternoon that it plans to convene and then adjourn its extraordinary general meeting of its shareholders originally to be held on September 26  at 11:30 a.m., Eastern Time.  Twin Ridge intends to hold the new meeting at 11:30 a.m., Eastern Time, on October 3, 2023. Additional details were not given as to...

by Kristi Marvin on 2023-09-22 at 4:46pm

Social Leverage Acquisition Corp I (Nasdaq: SLAC) and W3BCLOUD Holdings Inc. announced this afternoon that they have mutually agreed to terminate their business combination agreement. The reasons cited were once again “due to existing market conditions”, which most likely implies the current capital market conditions as well as the fact that W3BCLOUD works within the...

by Nicholas Alan Clayton on 2023-09-22 at 3:31pm

Hainan Sirius Acquisition Corp. (NASDAQ:HSAC) filed an S-1 this week to become September’s first new SPAC and the 20th overall to file in 2023. The SPAC aims to combine with a company operating in a sizable market with cutting edge disruptive technology that is scalable with near-term cashflow in sight. That is fairly broad and...

logo

Copyright © 2023 SPACInsider, Inc. All Rights Reserved