LF Capital Acquisition Corp. II (NASDAQ:LFAC) announced this afternoon that it has signed a non-binding letter of intent (LOI) with a target.

Although LF Capital II did not disclose the target’s name, it did mention that the company is a profitable U.S.-based manufacturer in the packaging industry. The established company serves diversified end markets and has a blue-chip customer base that are subject to multi-year contracts.

The SPAC has not signed a definitive agreement with the company just yet but intends to do so once it completes full due diligence, secures financing, and completes required stock exchange and regulatory reviews.

Today’s LOI announcement comes just hours after LF Capital II held its shareholder meeting to vote on a proposal to increase the monthly extension payments per one-month extension of its deadline to $0.04 per share of the company’s Class A common stock. The SPAC recently changed the redemption deadline for the vote from February 15 to February 17.  This move follows a supplemental addition to its proxy statement stating that the SPAC may be liable to pay a 1% federal excise tax imposed under the Inflation Reduction Act in connection with redemptions, but the funds for such payments would not come from its trust.

LF Capital II has not yet disclosed the results from today’s meeting but it is currently facing a completion deadline of February 19. It initially IPO’d in November 2021 with the intent of combining with a disruptive business in the fintech or services, technology, digital asset or consumer sectors.

Since LFAC’s announcement is just at the LOI stage, the SPAC will remain in SPACInsider’s “Searching” category until a definitive agreement is signed.