Adara Acquisition Corp. (ADRA) Closes Alliance Entertainment Deal
Adara Acquisition Corp. (NYSE American: ADRA) announced this afternoon that it has closed its combination with physical media distributor Alliance.
Adara shareholders approved the combination on January 18, but submitted redemption requests to redeem approximately 99.043% of the SPAC’s trust, or 11.39 million shares of Class A common stock, out of the 11.5 million outstanding shares.
As a result, Adara was left with approximately 110K shares remaining and it is unlikely that it will be able to satisfy the NYSE American Stock Exchange listing requirements. The initial terms of the deal included certain conditions, such as listing the combined company’s securities on a national exchange and a $15 million minimum cash requirement, however, it appears those have been resolved.
Beginning on February 13, the combined company’s shares and warrants will be quoted on the OTC under the ticker symbols “ADRA” and “ADRA WS”, respectively. Concurrent with Alliance Entertainment’s OTC quotation, Adara has been delisted from the NYSE American. Alliance Entertainment intends to list on the Nasdaq as soon as practicable after the deal closes and subject to satisfying the conditions for an initial listing.
The parties initially announced the $480 million combination on June 23, 2022. Sunrise, Florida-based Alliance distributes DVDs, CDs, video games, and other consumer goods to retailers, managing inventory for large clients.
Chairman Bruce Ogilvie and CEO Jeff Walker will continue to lead the combined company, along with its current management team.
- ThinkEquity LLC is serving as financial advisor to Adara.
- Loeb & Loeb LLP is serving as legal advisor to Alliance Entertainment.
- Blank Rome LLP is serving as legal advisor to Adara.