DTRT Health Acquisition Corp. (NASDAQ:DTRT) announced in an 8-K this afternoon that it has received a notice of termination of its merger agreement from healthcare company Consumer Direct and will instead liquidate its trust.
As a result of the termination, the SPAC’s sponsor, DTRT Health Sponsor LLC, disclosed that it will not contribute any additional funds to the trust account. Without the extension payment, DTRT is required to liquidate and dissolve as soon as practicable.
It has not yet released an official redemption rate, but its redemption price at its last vote on December 6 was $10.28. The SPAC raised $234.6 million in total gross proceeds at its IPO in September 2021, but saw 86% of that wiped away at its December 6 vote, leaving just $33.1 million in the trust. The transaction, however, did not include a minimum cash condition.
DTRT originally announced the $681 million deal with Consumer Direct in September 2022. Missoula, Montana-based Consumer Direct offers self-directed home care to disabled and elderly clients in 14 states through Medicaid, private insurance and managed healthcare plans.