A new shareholder has agreed to not to redeem 223,124 shares in connection with the today’s vote to extend the SPAC’s transaction deadline from October 11, to April 11, 2023. Altitude CEO Gary Teplis is to pay this shareholder $0.05 per share per month through the extended period in a single payment 45 days from the agreement’s start.
This is a slightly better deal than that received by the holders of 1,250,000 shares, who agreed not to redeem in connection with the SPAC’s June extension vote in exchange for $0.033 per share per month. Still, Altitude is hoping to keep a few more shares committed as it also announced this week that it intends to sign a letter of intent (LOI) to combine with a medical device manufacturer at an enterprise value of about $480 million.
Altitude said this target required the SPAC to maintain at least $20 million in cash available as a part of the deal. It initially raised $300 million in its December 2020 IPO, but saw this reduced to about $50.6 million after 83.1% of its shareholders opted to redeem at the earlier extension vote.
This teaser was announced right on the day of the SPAC’s redemption deadline and Altitude hopes it will have tempted holders of at least 10% of its remaining shares to stick through, allowing it to meet the target’s cash target.
If all goes well, the SPAC aims to announce an LOI with the target on Halloween, and a definitive agreement soon thereafter. Since this deal is not at the “definitive agreement” stage, and is still in the discussions stage, SPACInsider will not consider this deal “Announced”. As such, it will remain in the “Searching” category until a definitive agreement is signed.