The SPAC’s sponsor had originally agreed to loan the SPAC $0.055 for each Class A share not redeemed each month that it needed to still complete a business combination between now and July 26. It will now contribute the lesser of $0.055 per unredeemed share or $192,500.
This latter amount is exactly how much North Atlantic would have had to contribute normally if only 3,500,000 shares remained unredeemed on the other end of the vote. This result itself would have effectively equated to a redemption rate of 91%.
North Atlantic originally raised $379.5 million in its January 2021 IPO with a 1/3 warrant and a mandate to seek out a combination in the consumer, industrial or telecom sectors.
The new deadline for shareholders seeking to redeem is set for 5 pm ET January 23, and those who have already requested redemption may revoke this request until 2 pm ET January 25.
Last summer, North Atlantic postponed its completion vote for its combination with software firm TeleSign multiple times, before ultimately terminating it. The SPAC cited market conditions for terminating the deal, but noted earlier that its postponements were due to further work towards meet closing conditions with a $107.5 million PIPE that did not fully cover the $200 million minimum cash.