Electrum shareholders approve business combo extension date.
BANKING AND CREDIT NEWS-June 8, 2017-Electrum shareholders approve business combo extension date
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Shareholders for Electrum Special Acquisition Corporation (NASDAQ:ELEC), a blank check acquisition company, have approved an extension of the date by which it must complete a business combination to October 8, 2017, the company said.
The company's shareholders also approved an amendment to the company's investment management trust agreement, dated June 10, 2015, by and between the company and Continental Stock Transfer & Trust company, to extend the date on which to commence liquidating the trust account (the "Trust Account") established in connection with the company's initial public offering in the event the company has not consummated a business combination from June 10, 2017 to October 8, 2017.
Following redemptions of 3,031,985 of the company's shares in connection with the Extension, a total of approximately USD 170.7 million will remain in the company's Trust Account.
In connection with the Extension, the company's sponsor agreed to contribute to the company as a loan USD 0.025 for each public share that was not redeemed in connection with the shareholder vote to approve the Extension, for each calendar month, or portion thereof, that is needed by the company to complete a business combination (the "Contribution").
Electrum Special Acquisition Corporation is a blank check company formed for the purpose of acquiring, engaging in a share exchange, share reconstruction and amalgamation, purchasing all or substantially all of the assets of, entering into contractual arrangements, or engaging in any other similar business combination with one or more businesses or entities.
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