Inflection Point (IPAX) Shareholders Approve Intuitive Machines Deal, But “No Votes” Were Heavier Than Normal
by Marlena Haddad on 2023-02-08 at 6:19pm

Inflection Point Acquisition Corp. (NASDAQ:IPAX) announced this afternoon that its shareholders approved its combination with space services company Intuitive Machines at a special meeting held earlier today.

At the meeting, a total of 33,753,152, or 81.89%, of Inflection Point’s issued and outstanding ordinary shares were present either in person or by proxy.  The sponsor holds 8,243,750 Class B shares and IPAX had previously secured a non-redemption agreement with Kingstown 1740 Fund L.P., an affiliate of the Sponsor, pursuant to which Kingstown agreed not to redeem the 2,900,000 Cayman Class A Shares held by it.

That means, there were 22,609,402 public SPAC shares participating at today’s completion vote.

Screen Shot 2023-02-08 at 6.04.09 PM

Of those 22,609,402 public SPAC shares voting, 10,170,081, or 44.98%, voted against the combination proposal. This is a significantly higher amount of “no votes” that we’ve seen previously.

SPAC votes are getting an increased amount of scrutiny by investors as a result of the 1% excise tax and whether funds held in trust will be used to pay for any potential tax.  IPAX did have language that left that possibility open by stating, “the imposition of the excise tax could reduce the amount of cash available to us for effecting the redemptions of our shares.”

Today’s filing did not include redemption figures or an expected closing date.

The parties announced their $815 million business combination in September 2022. Houston, Texas-based Intuitive Machines has designed a moon lander for future NASA missions as well as other aerospace products.

 

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