Yunhong International (ZGYH) Liquidates Trust
by Marlena Haddad on 2021-11-19 at 7:41pm

Yunhong International (NASDAQ:ZGYH) announced this afternoon that it would be opting to liquidate its trust and wind down the company.

Yunhong disclosed in an 8-K filing that due to its inability to complete an initial business combination within the time period required by its Memorandum and Articles of Association, it intends to dissolve and liquidate.  The SPAC will redeem all of its outstanding ordinary shares that were included in the units issued in its IPO, at a per-share redemption price of approximately $10.31.

The SPAC held an extension meeting yesterday to move the consummation deadline of the business combination from November 18 to up to May 18. At the meeting, 1,091,949 shares were redeemed, or 15.825%, for a pro rata portion of the funds in ZGYH’s trust account for approximately $11.26 million, approximately $10.31 per share.

Yunhong’s sponsor decided to not make any additional contributions to the trust account as it already took three deadline extensions by contributing $0.10 per share to the trust. Accordingly, there will be no contribution for the extension period on November 18 or any subsequent extension period.

However, Patrick Orlando, which is the CEO of Yunhong, is also the Chairman and CEO of Digital World Acquisition Corp. (DWAC), which has already announced that it intends to combine with Trump Media & Technology Group.  Perhaps Patrick Orlando would rather focus on the hotter of his deals, but that is cold comfort to the shareholders of ZGYH. If this is the case, it feeds into why SPAC investors have preferred in the past that SPAC teams focus on one deal at a time to prevent fiduciary complications such as this.

Nonetheless, this is the first liquidation since Allegro Merger Corp, which intended to combine with TGI Fridays, but opted to liquidate on April 15, 2020, at the height of the Covid-19 pandemic.

Industrial and transportation solutions firm Giga Energy terminated its $7.4 billion deal with Yunhong back in September.

 

 

Recent Posts
by Kristi Marvin on 2024-05-18 at 11:45am

Terms Tracker for the Week Ending May 17, 2024 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. SPACs managed to price their third IPO in the month of May this week with RF Acquisition Corp. II‘s $100 million offering. RF II’s IPO...

by Nicholas Alan Clayton on 2024-05-17 at 8:08am

At the SPAC of Dawn While AST Spacemobile (NASDAQ:ASTS) had the SPAC market’s biggest leap yesterday, among de-SPACs that are trading above $10, it was oil and gas firm Sable Offshore (NYSE:SOC) that had the best outing. It finished up +14% and is gaining a further +2% in the pre-market to $14.30 this morning. This...

by Kristi Marvin on 2024-05-17 at 6:30am

RF Acquisition Corp. II (NASDAQ:RFAIU) announced the pricing of its $100 million IPO and its units are expected to begin trading on the Nasdaq under the symbol “RFAIU”, Friday, May 17, 2024. The new SPAC intends to focus its target search on businesses in Asia within the deep technology sector, including artificial intelligence, quantum computing,...

by Nicholas Alan Clayton on 2024-05-16 at 4:05pm

AST SpaceMobile (NASDAQ:ASTS) has been on +68% a tear off of its double-barreled announcement after hours yesterday that it signed a six-year commercial partnership with telecom AT&T (NYSE:T) and had beaten analyst expectations with its first quarter earnings. It has, in fact, been the best performer on the US markets throughout the afternoon outside of...

by Nicholas Alan Clayton on 2024-05-16 at 8:24am

At the SPAC of Dawn Chinese auto conglomerate Geely (HK:0175) has occupied a not insignificant portion of recent SPAC dealflow as it has turned to the vehicles to spin off a series of subsidiaries. But, this week, it veered back to the traditional IPO path. The early returns on its move to bring EV brand...

logo

Copyright © 2023 SPACInsider, Inc. All Rights Reserved