Armada I (NASDAQ:AACI) announced this morning that it has agreed to distribute up to 75,000 promote shares (1.5%) to “one or more third parties” in exchange for them not redeeming shares at the SPAC’s upcoming extension vote.
The 8-K filing did not specify how many common shares would be covered by these agreements, but the language also suggests this final number may still be pending. The agreements also stipulated that Armada I will maintain trust funds in an interest-bearing US government securities until either completion or liquidation.
Investors may have a heightened interest in the state of Armada I’s trust since it filed a supplement to its extension proxy last week stating that it intended to seek the ability to remove earned interest from the trust account to pay for any excise tax due to redemptions. There continues to be some uncertainty as to whether SPACs will be forced to pay the Inflation Reduction Act’s 1% excise tax on share buybacks for shares redeemed outside of a total liquidation.
It has since clarified that it its redemption rate will be unchanged for at least the next vote, rescheduled to January 30. However, Anzu Special Acquisition Corp I (Nasdaq: ANZU) filed its definitive proxy on Friday, keeping the reduced redemption value feature to pay for the tax. Anzu I’s vote is scheduled for February 9, so it will be interesting to see if any changes to reverse this occurs before that time.
Armada I’s transaction deadline comes up on February 17 and it is seeking to extend this six months to August 17. It is working to close its combination with adtech firm Rezolve, which it announced in December 2021.
Terms Tracker for the Week Ending January 27, 2022 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. We’re coming up on the end of January, the first month of the year, and to-date no new S-1s have been filed. Additionally, the number...
Below is a daily summary of links to the latest SPAC news and rumors gathered across the web. Latest SPAC News: Circle spokesperson denies blaming SEC for failed deal, BuzzFeed CEO says AI-powered content will be part of core business, and FaZe Clan faces possible delisting Circle Spokesperson Denies Blaming SEC for Failed $9 Billion Deal...
Health Sciences 2 (NASDAQ:HSAQ) announced that it closed its combination with Orchestra BioMed on January 26. HSAQ ahead of its vote pre-announced redemption figures of 1,597,888 shares equating to 67.7% redemptions, however, that’s still subject to change. However, today it was noted that Orchestra BioMed is to receive $70 million in gross proceeds including $20...
Carbon capture technology has long been talked about, and it is finally in operation with LanzaTech among the pioneers. Its plants are turning potential emissions into clothing, household goods and sustainable fuels. SPAC cash is now also an accelerant in this new process as the company announced a $1.7 billion combination with AMCI II last March. This week, we caught up with...
In this series we’ll be examining successful SPAC deals from the past both in the terms and circumstances of their de-SPAC processes and how they have weathered the storms that have followed after their public listings with research from SPACInsider contributor Anthony Sozzi. Thirty months does not sound like that long, but it’s been a...