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.
Terms Tracker for the Week Ending May 9, 2025 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. After the sprint that was last week, with nine IPOs and six new SPAC filings, this week took a breather. Only two SPACs priced, there...
Lake Superior (NASDAQ:LKSPU) has filed for a $100 million SPAC as its CEO attempts to go three-for-three with SPACs that led to completed deals. This new vehicle has one right to a 1/6 share in each unit and some common features of a SPAC underwritten by Cohen & Company in this current climate. Although the...
At the SPAC of Dawn De-SPACs were among the biggest movers in yesterday’s stock market rally, but most of this momentum came on the backs of direct earnings performance. Only three US-listed companies had bigger one-day gains than quantum computing firm D-Wave’s (NYSE:QBTS) +51.2% jump. This came as the company announced $15 million in revenue...
EGH Acquisition Corp. (NASDAQ:EGHAU) announced the pricing of its $150 million IPO and its units are expected to begin trading on the Nasdaq under the symbol “EGHAU”, Friday, May 8, 2025. The new SPAC aims to combine with a target company in the energy transition or sustainability arena that help industries achieve efficiencies and decarbonization....
At the SPAC of Dawn Fed Chair Jerome Powell announced yesterday that the body intends to keep rates unchanged, earning him the moniker “FOOL” by US President Donald Trump. But, the announcement could bring some stability to market, which has seen macro factors pull it a variety of directions since the start of the year....