Mudrick Capital (MUDS) Files Extension Vote Results

Mudrick Capital Acquisition Corp. (MUDS), filed an 8-K this morning detailing the results of their shareholder vote to extend their completion deadline to August 12, 2020 (held yesterday), and redemptions were heavy.  Mudrick was not offering a contribution to trust for non-redeeming shareholders for those additional six months, so this result is unsurprising.

In connection with this vote, the holders of 13,890,713 shares of common stock properly exercised their right to redeem at a redemption price of approximately $10.38 per share, for an aggregate redemption amount of approximately $144,218,760. That’s approximately two-thirds of the trust leaving a cash value of roughly $71,734,892.

As you can see below, the extension was approved by shareholders with 19,603,192 voting “yes”, so Mudrick will now be using those additional six months to work towards closing their combination with Hycroft Mining.  However, Mudrick is going to need to work hard to get their share price trading above trust value or they risk further redemptions at combination close.  They have some time now, so let’s see what they do.