Belong (BLNG) Postpones Extension Vote, Enters Non-Redemption Agreement, and Signs LOI
Belong Acquisition Corp. (NASDAQ:BLNG) disclosed in an 8-K this afternoon that its special meeting, originally scheduled for Wednesday, December 14, has been postponed to Wednesday, December 21. Additionally, the SPAC has entered into a non-redemption agreement, and signed a non-binding letter of intent (LOI).
At the upcoming meeting, stockholders will be asked to vote on proposals to extend the company’s timeline from January 27, 2023 to July 27, 2023, to approve an amendment to extend the liquidation date, and to approve the adjournment of the special meeting to a later date, if necessary. This marks Belong’s 2nd postponement of an extension vote.
As a result of the postponement, Belong also extended the deadline for holders of its Class A common stock to submit their shares for redemption to Monday, December 19, 2022.
Additionally, the company and its sponsor, Belong Acquisition Sponsor, LLC, have entered into one or more non-redemption agreements with certain stockholders, and expect to enter into additional non-redemption agreements prior to the meeting. The non-redemption agreement, provides for the allocation of up to 100,000 shares of Class B common stock of BLNG in exchange for the investor agreeing to hold and not redeem certain public shares at the meeting.
Further, Belong disclosed that it has entered into a non-binding LOI with a target in the plant-based foods industry. The unnamed target is a profitable, diversified North American platform with over $50 million in revenue and has demonstrated a track record of acquiring and growing companies in the plant-based ingredients and consumer packaged foods industries.
Although details on the proposed transaction remain limited at the moment, the SPAC expects to announce additional information once a definitive agreement is executed, which is expected within 30 days, with a final transaction closing anticipated in the second quarter of 2023.
Since Belong’s deal is not at the “definitive agreement” stage, and is still just a non-binding LOI, SPACInsider will not consider this deal fully “announced”. As such, it will remain in the “Searching” category until a definitive agreement is signed.
The SPAC announced the pricing of its $150 million IPO in July 2021. The SPAC initially set out to combine with a later-stage technology or tech-enabled growth target that has a diverse management team and can bring unique value to customers in a sustainably differentiated manner. Belong is led by Chairman and CEO Jennifer Deason along with President and CFO Peter Saldarriaga.