North Atlantic (NAAC) Postpones Shareholder Vote

North Atlantic Acquisition Corp. (NASDAQ:NAAC) announced this afternoon that it has postponed its special meeting to vote to approve its combination with communications platform Telesign.

Although NAAC noted that a sufficient number of NAAC’s shareholders have already voted to approve the business combination, it also stated that all of the conditions to effect the closing of the deal have not yet been satisfied. With that being said, the postponement will allow more time to satisfy those closing conditions.  And while NAAC did not disclose exactly which condition(s), satisfying the minimum cash to close the deal is usually what trips SPAC’s up. If that’s the case with NAAC, most likely they will use the extra time to secure a backstop financing.

As background, North Atlantic must maintain at least $200M in its trust in order to close the deal, and brings $380 million into the transaction from its current trust alongside a $107.5 million fully committed PIPE at $10 per share. The PIPE drew investment from a group of investors including SFPI-FPIM as a key investor, to fund TeleSign’s growth plans.

The meeting, which was originally supposed to be held tomorrow May 18, 2022, has been postponed until June 1, 2022 at 8:00 a.m. Eastern Time. The redemption deadline is also postponed to May 27, 2022, but the record date remains April 13, 2022.

North Atlantic initially announced its $1.3 billion deal with Telesign last year on December 16. Marina del Ray, California-based Telesign provides security solutions through APIs, combining digital identity with global communications capabilities to help enterprises connect, protect and engage with their customers.