M3-Brigade Acquisition Corp. II (NYSE:MBAC) announced this afternoon that it has entered into a non-redemption agreement with one or more unaffiliated third parties pursuant to which the third parties have agreed not to redeem an aggregate of 400,000 shares of the company’s Class A common stock at its upcoming extension meeting.
In exchange for the foregoing commitments not to redeem the shares, the sponsor has agreed to transfer an aggregate of 100,000 shares of the Company’s Class B common stock to the third parties immediately following the completion of an initial business combination.
M3-Brigade II intends to hold its extension meeting on March 7 and hopes to gain shareholder approval to extend its deadline from March 8 to December 8. Additionally, the sponsor intends to enter into additional non-redemption agreements prior to the meeting.
In the event that the extension is approved, funds in the SPAC’s trust, including any interest earned, will not be used to pay for any excise tax liabilities with respect to any redemptions.
M3-Brigade II noted in the filed 8-K that today’s non-redemption agreements are not expected to increase the likelihood that the extension is approved, but it is expected to increase the amount of funds that remain in MBAC’s trust account following the meeting.
M3-Brigade II announced the pricing of its $400 million IPO in March 2021. It initially agreed to combine with Syniverse in a $2.8 billion deal in August 2021, but later terminated the deal in February 2022 citing market conditions and noting that redemptions would have made it unable to meet the deal’s minimum cash condition.
Terms Tracker for the Week Ending March 31, 2023 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. Filings continue to remain quiet, but SPACs did manage to price two more IPOs this week with TMT Acquisition Corp (Nasdaq: TMTCU) and Trailblazer Merger...
Hudson Acquisition I Corp. (NASDAQ:HUDA) announced that it has signed a non-binding letter of intent (LOI) to combine with a pre-clinical-stage biotechnology company. The SPAC did not provide many details on the unnamed target, but disclosed that the biotech company is focused on developing intranasal preventives for major disease-causing respiratory viruses. As a condition to the target...
Heading into April, SPACs are to see eight sponsors and 11 de-SPAC’d companies freed from lock-ups and ready to trade. Most of these lock-up expirations are loaded into the final week of the month, but those hitting this milestone already next week include some of the more interesting transactions of the crop. In particular, MoonLake...
Below is a daily summary of links to the latest SPAC news and rumors gathered across the web. Latest SPAC News: Shares of Digital World jump after Trump’s indictment, and pair of Delaware Chancery court decisions deny motions to dismiss SPAC shareholder’s fiduciary breach claims Trump-Tied SPAC’s Shares Jump After Historic New York Charge The...
Ares Acquisition Corporation II (NYSE:AACT) filed its S-1 yesterday afternoon for a $400 million IPO, marking the second SPAC to file for an IPO in March and the largest since December 20, 2021, when Gores Holdings X Inc. filed for a $725 million SPAC. Ares II intends to focus its search on an established target...