The parties expressed that they decided to part ways due to challenging market conditions, concluding that pursuing the deal would not be the most effective route to fulfill zTrip’s long-term strategic goals. “Even high-growth and very profitable companies are finding the environment hard as a result of the present market conditions,” Chairman of Spree, Steve Greenfield, noted.
But, Spree disclosed that it still plans to continue its pursuit of successfully completing a business combination with an alternative target. It originally sought to acquire a mobility-related technology business with underexploited growth opportunities.
The SPAC announced the $251 million deal in October 2022. Spree initially brought an estimated $205.9 million from its trust into the deal, but saw this reduced to $44.72 million after redemptions removed 78.82% of the trust. It did not supplement this with a PIPE, but its original announcement indicated that the parties attempted to arrange one. Additionally, the transaction featured a $50 million minimum cash condition in order for the deal to close.
Kansas City-based zTrip operates taxi fleets in 26 US cities in the South and Midwest.