Pensare Announces Adjournment and Reschedules Vote
Pensare Acquisition Corp. (WRLS), announced today that it intends to convene and then adjourn its Special Meeting which was originally scheduled for tomorrow, April 26th. Instead, the meeting will now take place on Monday, April 29th.
The proposals Pensare is asking shareholders to vote on have not changed. However, Pensare did provide slightly more clarity as to the one-month contribution to the trust for shareholders who do not redeem at the vote and any potential subsequent contributions in additional months.
As previously stated, Pensare will contribute $0.033 for each share of Pensare’s common stock that is not redeemed in connection with with the Extension Vote to move its deadline to August 1, 2019, but only for the month of May. If the Extension is implemented, the Company’s sponsor will make the Contribution on or before May 10, 2019, increasing the pro rata portion of the funds available in the trust account from approximately $10.32 per Public Share to approximately $10.36 per Public Share.
The additional information provided is that Pensare will announce no later than May 31, 2019 if the Company’s sponsor will make additional contributions to the Trust Account after that month. If, at that time, Pensare decides not to make additional contributions, Pensare will offer stockholders the right to redeem with a deadline to submit redemption requests within approximately ten business days following that announcement. Payments would be made within five business days after the redemption deadline.
However, if Pensare DOES decide to contribute for additional months after May, (in a per-share amount equal to $0.033) no additional redemption events will offered.
This 8-K is essentially tying up loose ends to any questions surrounding this unusual “contribution to trust” scenario. Most importantly, the date for the Special Meeting is moved to Monday, in order to give shareholders the opportunity to elect to redeem tomorrow (two days prior to the vote) given the clarification of the previously stated information. The clarification being that if you do not redeem in April, you are potentially locked in until August 1st….there is no guarantee of another redemption opportunity in June.
Given this unusual scenario, it will be interesting to see the redemption results. We’ll report back with any information as soon as it becomes available.