Northern Star Investment Corp. III (NYSE:NSTC) and Northern Star Investment Corp. IV (NYSE:NSTD) announced this morning that both companies have adjourned their extension votes.
Both SPACs intended to hold their meetings on February 24, but have adjourned them until March 1 to further engage with stockholders and solicit additional votes and redemption reversals. Northern Star III and IV have completion deadlines of March 4, and are hoping to gain shareholder approval to extend their timelines until September 4.
Additionally, due to the Inflation Reduction Act of 2022, a 1% U.S. federal excise tax will be imposed on certain repurchases of stock occurring on or after January 1. As a result, any share redemption that occurs after December 31, 2022, in connection with a business combination or extension vote may be subject to the excise tax. Both companies have agreed that if the extensions are approved, then the per share price payable to stockholders exercising their redemption rights will not be reduced by payments required to be made under the Act.
Northern Star III announced the pricing of its upsized $350 million IPO in March 2021. It hasn’t announced a business combination just yet, but aims to combine with a direct-to-consumer target or disruptive e-commerce marketplace with a data-driven business.
Northern Star IV also announced the pricing of its upsized $350 million IPO in March 2021, and also intends to combine with a direct-to-consumer target with a data-driven business.
Both SPACs are led by Chairman and CEO Joanna Coles, CFO James H.R. Brady and President and COO Jonathan Ledecky.
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