EdTechX Holdings’ Shareholders Approve Combination
EdTechX Holdings Acquisition Corp., (EDTX), which held their shareholder vote yesterday to complete their business combination with Meten Education, announced via 8-K that their combination has been approved.
As you can see in the table below, the combination was approved with 4,619,383 shares in the “For” column and only 300,000 shares voting “Against” this transaction.
Additionally, in connection with this vote, a total of 5,974,745 shares of common stock exercised their right to redeem at a redemption price of approximately $10.34 per share, for an aggregate redemption amount of roughly $61.78 million. That leaves just 350,255 public SPAC shares post-vote with an approximate trust balance of $3.6 million.
This result is not unexpected given the challenging closing environment SPACs are currently facing due to the coronavirus situation. However, keep in mind that EDTX did not have Rights included in its IPO unit, so there will not be any Rights converting to Shares post-close to provide additional float. As a result, we could have another low-float situation where there is increased volatility in the share price.
No word yet on when this transaction is expected to close, but a press release should be forthcoming shortly.
- Chardan is acting as financial and capital market advisor to EdtechX
- Macquarie is acting as financial advisor to Meten
- Graubard Miller LLP is acting as legal counsel to EdtechX
- Morgan, Lewis & Bockius is acting as legal counsel to Meten