Ireland-backed $400m Spac is pulling the plug after failing to seal the deal

An Irish-backed $400 million investment vehicle has told shareholders just hours before an emergency meeting scheduled for Wednesday night that it is being liquidated after failing to complete an acquisition or merger by a deadline.

North Atlantic Acquisition Corporation (NAAC), a Special Purpose Acquisition Company (Spac), was co-founded by its CEO, Gary Quin.

He is a former Vice President of Credit Suisse. Another key co-founder is Irish businessman Patrick Doran. In 2016 he sold his Dublin-based packaging company Americk to Spanish group Saica. He then founded Woodberry Capital, a private investment firm.

Spacs have flocked to the market in recent years as interest rates forced investors to seek yields on their cash piles. But Spacs have since fallen firmly out of favor.

NAAC raised nearly $400 million from investors in January 2021. The original deadline for the conclusion of an investment agreement ended this Thursday.

The Nasdaq-listed company was scheduled to hold a meeting in New York on Wednesday afternoon to ask shareholders to approve an extension of the deadline to July 26 this year.

“The Company encourages its shareholders to vote on the proposal to amend its Articles of Association to extend the date by which the Company must complete a business combination from January 26, 2023 to July 26, 2023,” read one Circular to Shareholders.

However, on Wednesday, in a dramatic move, the company announced to the stock exchange that the vehicle would be liquidated.

“Due to its inability to consummate an initial business combination within the required time period … the Company’s board of directors has resolved to wind up and liquidate the Company pursuant to the provisions of its articles of association and will redeem all outstanding common stock contained in the units issued in its initial public offering.” ‘ the company said in a statement.

NAAC last year planned a merger with US tech company Telesign, owned by Belgian wireless company Proximus.

This deal valued Telesign at more than $1.7 billion, including cash from NAAC. NAAC shareholders would have owned 22 percent of the combined company, while 4.9 percent would have been split between NAAC’s founders.

Mr. Quin and Mr. Doran raised just $25,000 for their charter shares and control 20 percent of NAAC’s total outstanding shares.

However, the deal fell through last summer. Ireland-backed $400m Spac is pulling the plug after failing to seal the deal

Fry Electronics Team

Fry is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – The content will be deleted within 24 hours.

Related Articles

Back to top button