Chain Bridge I (CBRG) Sells Sponsor Economics
Chain Bridge I (NASDAQ:CBRG) announced in an 8-K filing that it agreed to transfer control of its sponsor to Fulton AC I LLC, which will now appoint a new team.
The agreement involves the buyer acquiring 3,035,000 Class B ordinary shares and warrants to buy 7,385,000 Class A ordinary shares from the sponsor. These become exercisable 30 days following the completion of a business combination.
For this transaction to finalize, the $1.15 million principal balance from the promissory note issued by the sponsor to Chain Bridge I must convert into warrants, other loans must be terminated, and the current SPAC board members along with CEO Michael Rolnick must resign.
Additionally, Chain Bridge I has decided to extend its timeline for an additional month. It currently has a completion deadline of January 15, but can extend until February 12.
As of December 13, all current board members and the CEO of Chain Bridge I have submitted their resignations. However, Fulton AC I hasn’t yet revealed the new appointees for the CEO or the board. Roger Lazarus will retain his position as CFO.
Chain Bridge I originally intended to liquidate on October 31 and redeem all of its outstanding Class A ordinary shares, but reversed its decision two weeks later.
The SPAC listed in November 2021, originally aiming to combine with an innovative technology company with US government contracts, and has not yet signed a definitive agreement for a merger. But, it did announce a letter of intent (LOI) with a target in April. The announcement provided no details on the company or its sector.