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.
Stellar V (NASDAQ:SVCCU) has filed for a $150 million IPO with a sponsor team that has experience stretching back several SPAC cycles. Co-CEOs George Syllantavos and Prokopios Tsirigakis have steered SPACs as far back as Star Maritime Acquisition Corp, which IPO’d in 2005 and combined with shipping firm Star Bulk Carriers (NASDAQ:SBLK) in 2007. Star...
Athena Technology II (NYSE:ATEK) has entered into a definitive agreement to combine with Ace Green Recycling at an equity value of $250 million. Houston, Texas-based Ace Green has developed technology for low-emissions recycling to harvest lithium, lead and other valuable resources from lithium-ion batteries. The combined company is expected to trade on a US exchange...
At the SPAC of Dawn One of the last major pieces to fall into place for the new Trump administration has been the one that affects SPACs most directly – the chairmanship of the SEC. Paul Atkins has now been picked for the post and is set to succeed Gary Gensler who already announced his...
Shepherd Ave Capital Acquisition Corporation (NASDAQ:SPHAU) announced the pricing of its $75 million IPO and its units are expected to begin trading on the Nasdaq under the symbol “SPHAU”, Thursday, December 5, 2024. The new SPAC intends to conduct a broad search for a combination target without a preference for a specific industry or region....
At the SPAC of Dawn SPACInsider has kept a close eye on how the new tariffs ushered in by a second Trump presidency could affect SPACs and their deals moving forward. But, there is a genre of SPAC deal that has cropped up in recent years essentially as a hedge to trade tensions and they...