Liberty Media Acquisition Corp. (LMAC) Files to Liquidate Early by Vote
by Kristi Marvin on 2022-09-29 at 5:49pm

Liberty Media Acquisition Corp. (Nasdaq: LMAC) filed a proxy this afternoon for a shareholder vote to liquidate early. Liberty Media’s current completion deadline is January 26, 2023, but today’s filing is asking shareholders to approve an amendment that would allow the Board to change the date to no later than December 30, 2022.

As has been cited by many teams this year, Liberty Media noted in a press release, “…a declining IPO market in 2022, and significant public and private market volatility, which have prevented the Company from securing an opportunity that it believes will offer a compelling return on investment for its stockholders.”  Liberty Media also stated that they had evaluated over 140 target companies since its IPO on January 23, 2021.

Interestingly, Liberty Media also explicitly referenced the “recent changes in U.S. tax law” as the reason to move up its completion deadline so it could liquidate early. This is a direct reference to the recent 1% excise tax on share buybacks that was included in the Climate Change Bill that was passed in early August (also named the “Inflation Reduction Act”).   Crucible Acquisition Corp. (NYSE: CRU) recently filed to do something similar, and while CRU did not make mention of the excise tax in its 8-k, it is implied given that its current completion deadline is January 7, 2023.

These moves are not unexpected and there should be additional teams looking to do the same given the strong economic headwinds combined with a 2023 SPAC expiration date and additional tax bill. Look for an increase in the coming months of SPACs looking to terminate early by vote as well.

In the meantime, Liberty Media has set a record date of October 3, 2022.  As a result, the vote will most likely be held in late October or early November.

 

Recent Posts
by Nicholas Alan Clayton on 2024-03-27 at 1:31pm

News and Rumors CNBC: Former WeWork (OTC Pink:WEWKQ) founder Adam Neumann has offered to buy back control of the company for $500 million but has yet to secure the necessary financing. WeWork went public with BowX in October 2021. PR: Satellite telecom firm Spire Global (NYSE:SPIR) has signed an agreement to build and launch two...

by Nicholas Alan Clayton on 2024-03-27 at 11:38am

Bannix (NASDAQ:BNIX) has entered into a definitive agreement to combine with VisionWave Technologies for $30 million. The combined company is expected to trade on the Nasdaq once the deal is completed with an initial outside date of September 14. Transaction Overview Bannix has about $17 million in its trust after seeing 77.4% of its shares...

by Nicholas Alan Clayton on 2024-03-27 at 7:33am

At the SPAC of Dawn Much of the attention yesterday was on tracking the swings of the newly-completed Trump Media (NASDAQ:DJT) deal with the FT going as far to suggest it may “make SPACs great again.” Not all of the day’s data points were on the positive side of the ledger, however. IB Acquisition Corp....

by Nicholas Alan Clayton on 2024-03-26 at 1:52pm

News and Rumors SpaceNews: Boeing (NYSE:BA) has sued Virgin Galactic (NASDAQ:SPCE) alleging the space tourism venture refused to pay $25 million it owed for design work and violated Boeing’s intellectual property rights. Virgin Galactic combined with Social Capital Hedosophia in 2019. Bloomberg: The most popular options contract for Trump Media (NASDAQ:DJT) predicts it to plunge...

by Nicholas Alan Clayton on 2024-03-26 at 11:51am

APx (NASDAQ:APXI) has entered into a definitive agreement to combine with precision medicine firms OmnigenicsAI and MultiplAI at an enterprise value $340 million. Once combined, these companies will offer DNA tests to consumers linked to predictive insights on their nutritional and genomic health. The combined company is expected to trade on the Nasdaq under the...

logo

Copyright © 2023 SPACInsider, Inc. All Rights Reserved