OmniLit Acquisition Corp. (NASDAQ:OLIT) announced in an 8-K filing this afternoon that it has signed a non-binding letter of intent (LOI) to combine with a target company ahead of its extension vote on Wednesday.
The SPAC disclosed that the target is a manufacturer of optics and photonics components and sub-systems with a strategy to continue to acquire and invest in unique high-operating margin optics and photonics companies.
CFO of OLIT, Robert Nelson II, believes that this vertically-integrated target is an attractive opportunity as the photonics manufacturing industry “tends to generally be recession-resistant” and the business “will see gains through tailwinds emerging from increasing global conflict, intelligent automation, and ubiquitous data.”
Today’s LOI announcement just so happens to fall on OLIT’s new redemption deadline. As of December 9, an aggregate of 14,152,185 shares were already tendered for redemption, but shareholders are allowed to reverse their decision up until today.
The SPAC recently adjourned its special meeting from Tuesday, December 13, to Wednesday, December 21, and hopes to gain stockholder approval to extend its timeline by an additional nine months, from February 12, 2023, to November 12, 2023.
Additionally, OmniLit and its sponsor, OmniLit Sponsor, LLC, recently entered into one or more non-redemption agreements with certain stockholders and expect to enter into additional non-redemption agreements prior to its meeting. The agreement provides for the allocation of one share of Class B common stock in exchange for every 2.3 investor shares held and not redeemed at the upcoming meeting.
OmniLit announced the pricing of its $125 million IPO in November 2021, and set out to identify high-quality businesses in the advanced manufacturing industry, specifically the photonics or optics products, services, and end markets.
Since OmniLit’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, which is contingent upon review by a Special Committee of independent directors.