FAST Acquisition Corp (NYSE: FST) noted in a 10-Q this morning that it intends to liquidate its trust shortly after its August 25 transaction deadline.
As a result, FAST will now receive $26 million in a settlement from Fertitta Entertainment, which sought to terminate their combination just before close in December. Fertitta paid the SPAC $6 million in cash and a $1 million loan as a breakup fee at the time, and pledged to pay a further $10 million if FAST closed another deal or $26 million if not. For Fertitta, this amounts to the cost of a public listing without a public listing.
The big issue now is where this $33 million goes. In the filing, FAST states that “any funds received pursuant to the Settlement Agreement that are remaining after the payment of expenses will not be part of any distributions with respect to the Public Shares.”
This may be difficult to swallow for investors seeing as it would potentially reward FAST’s sponsor handsomely for a deal that didn’t occur, rather than investors that have stowed their capital with the SPAC for the past two years.
There are echoes of the Fertitta situation in the terms of FAST II’s (NYSE:FZT) pending combination with Falcon’s Beyond, which was announced last month. Should this deal be terminated, Falcon’s Beyond must pay FAST II a breakup fee of $12.5 million if redemptions are less than 90% or unknown and $6.5 million if redemptions top 90%.
It is unclear who would receive these sums should the deal be terminated and the SPAC liquidated. But, at any rate, the transaction is essentially insulated from redemptions as it has no minimum cash condition and a $60 million PIPE.
Below is a daily summary of links to the latest SPAC news and rumors gathered across the web. Pinstripes Expands Senior Leadership Team, Hires Chief Financial Officer and Chief Marketing Officer in Advance of Public Listing Pinstripes, Inc, a best-in-class experiential dining and entertainment brand combining bistro, bowling, bocce and private event space, today announced...
Athena Consumer Acquisition Corp. (NYSE: ACAQ) announced this morning that it plans to again adjourn its September 28 special meeting to approve its combination with German EV-maker e.GO without conducting business and will reconvene it at 4 pm ET September 29. The SPAC’s warrant holders are also to vote at at a meeting 30 minutes...
Integrated Wellness (NYSE:WEL) announced this morning that it has nixed its combination with vending machine operator Refreshing USA due to conditions of the combination remaining unfulfilled. The SPAC did not elaborate on what conditions those were, but the two sides have been past their initial outside date since July 31. Integrated Wellness still plans to...
Berenson Acquisition Corp. I (BACA) Signs Non-Redemption Agreements Berenson (NASDAQ:WTMA) announced in an 8-K this morning that it has entered non-redemption agreements with third parties that will secure 655,715 shares from redemption. The filing did not note what incentive, if any, these investors received for agreeing not to redeem. The move comes as Berenson is...
Crixus BH3 Acquisition Company (NASDAQ: BHAC) announced in a filing this afternoon that it is postponing its extension vote to Friday, October 6, 2023 at 9:00 a.m ET. The meeting was originally to be held Friday, September 29, but presumably it has been moved to account for amendments to its proxy which was filed today...