SPACInsider Logo
Ackrell SPAC Partners I (ACKIT) Terminates Blackstone Products Deal, Liquidates Trust
by Marlena Haddad on 2022-08-31 at 6:04pm

Ackrell I (NASDAQ:ACKIT) announced this afternoon that its business combination with outdoor cooking company Blackstone Products has been terminated and will instead liquidate its trust.

While most SPACs have terminated their deals due to unfavorable market conditions, Ackrell claims its target company refused to fund a promissory note to extend the transaction deadline. On August 27, the SPAC received a notice from Blackstone purporting to unilaterally terminate the merger agreement after the outdoor cooking company had declined to loan Ackrell I the final $200,000 requested for a promissory note dated June 21, in the principal amount of up to $600,000.

Prior to the close of business today, Ackrell had not received the $200,000 for the note, nor secured money from any other party, which was required to be deposited by today into the trust account. Blackstone’s counsel advised Ackrell that it does not have a legal obligation to loan the company the money, but the SPAC disagreed.

Nonetheless, today was Ackrell’s transaction deadline, resulting in the liquidation of the trust. The public subunits will be deemed cancelled and will represent only the right to receive the redemption amount of approximately $10.38 per share.

Ackrell anticipated funding the deal with about $139.4 million from its trust supplemented by a $31 million PIPE and $111 million in convertible notes. The note offering, which was led by FS Investments, was contingent upon certain minimum cash and price performance requirements. The deal featured a minimum cash closing condition of at least $150 million in cash.

Today’s announcement marks the second SPAC to liquidate this week, following yesterday’s liquidation of Warrior Technologies, and is the 21st SPAC to liquidate in 2022 thus far. This also marks the 43rd deal to be terminated this year.

Ackrell originally announced its $900 million business combination with outdoor cooking company Blackstone Products last year on December 23. Logan, Utah-based Blackstone provides outdoor griddles, accessories and consumables.

Recent Posts
by Kristi Marvin on 2023-01-28 at 1:59pm

Terms Tracker for the Week Ending January 27, 2022 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. We’re coming up on the end of January, the first month of the year, and to-date no new S-1s have been filed. Additionally, the number...

by Marlena Haddad on 2023-01-27 at 11:34am

  Below is a daily summary of links to the latest SPAC news and rumors gathered across the web.  Latest SPAC News: Circle spokesperson denies blaming SEC for failed deal, BuzzFeed CEO says AI-powered content will be part of core business, and FaZe Clan faces possible delisting Circle Spokesperson Denies Blaming SEC for Failed $9 Billion Deal...

by Nicholas Alan Clayton on 2023-01-27 at 10:00am

Health Sciences 2 (NASDAQ:HSAQ) announced that it closed its combination with Orchestra BioMed on January 26. HSAQ ahead of its vote pre-announced redemption figures of 1,597,888 shares equating to 67.7% redemptions, however, that’s still subject to change.  However, today it was noted that Orchestra BioMed is to receive $70 million in gross proceeds including $20...

by Kristi Marvin on 2023-01-27 at 7:33am

Carbon capture technology has long been talked about, and it is finally in operation with LanzaTech among the pioneers. Its plants are turning potential emissions into clothing, household goods and sustainable fuels. SPAC cash is now also an accelerant in this new process as the company announced a $1.7 billion combination with AMCI II last March. This week, we caught up with...

by Nicholas Alan Clayton on 2023-01-27 at 7:30am

In this series we’ll be examining successful SPAC deals from the past both in the terms and circumstances of their de-SPAC processes and how they have weathered the storms that have followed after their public listings with research from SPACInsider contributor Anthony Sozzi. Thirty months does not sound like that long, but it’s been a...

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