PowerUp (NASDAQ:PWUP) announced in an 8-K this morning that it has sold a large portion of its sponsor stake to SRIRAMA Associates in exchange for the investor taking on management responsibilities for the SPAC.
SRIRAMA is to receive 4,317,500 Class A shares and 6,834,333 private placement warrants (69% of total) for a total purchase price of $1. In exchange, it will assume all of the SPAC’s expenses and obligations and will have the right to replace its management team and Board.
It has not yet announced these personnel moves, but the new investor has plenty of time to consider them as well as the SPAC’s new strategy.
PowerUp has only $19 million left in its trust after seeing 93.7% redemptions at an April extension vote. But, that pushed its transaction deadline all the way to May 23, 2024, so there is time to work out the details.
Under its previous management, PowerUp had sought to combine with a digital media and entertainment business with a team specialized in the video game business.