Atlantic Coastal Acquisition announced today that it has terminated its proposed merger with Essentium, which makes industrial additive manufacturing solutions. The decision was mutual, the SPAC said in a news reelease.mutual agreement of all relevant parties. Atlantic Coastal intends to pursue an alternative business combination.
In connection with the agreement to terminate, Atlantic Coastal will be granted the right to receive payments in the future, subject to certain circumstances relating to the completion of future financing transactions by Essentium, a sale of Essentium, or Atlantic Coastal’s inability to consummate a merger. The parties have also agreed that, in the event a sale of Essentium does not occur on or prior to March 8, 2023, Essentium shall deliver a warrant to Atlantic Coastal providing for the SPAC to acquire a stake equal to 5% of Essentium at an implied valuation equal to $500 million.
Essentium CEO Blake Teipel blamed market conditions for the failed deal.
Announced in December, the transaction was expected to deliver up to $346 million of net proceeds to Essentium. Read more.