Leisure Acquisition said it will appeal the Nasdaq’s decision to delist the SPAC from the exchange effective June 3 due to the company’s failure to complete a merger by the June 1 deadline. A tardy 10-Q means the SPAC has also run afoul of Nasdaq’s listing rules.
Leisure management in a statement said the SPAC’s securities will be immediately eligible to trade on the OTC Markets system on June 3.
Although trading, if any, will occur in the OTC market, the SPAC will remain technically listed on Nasdaq pending the expiration of all review and appeal processes.
The SPAC said it is working to file a 10-Q with the SEC and complete its proposed merger with Ensysce Biosciences, but cautioned that it cannot assure the merger with Ensysce or filing financial statements will be completed prior to the expiration of the current SPAC period on June 30, or that its securities will trade on Nasdaq upon completion of the merger.
The transaction reflects an enterprise valuation for Ensysce of $207 million, including the company’s existing convertible indebtedness.
Leisure’s 10-Q filing delay was triggered by the SEC’s April statement on new accounting for warrants, the SPAC said. Read more.
