Altitude Acquisition entered into non-redemption agreements with certain shareholders who support the proposal to extend the SPAC’s merger deadline from June 11 until Oct. 11.
A shareholder vote on the proposed extension is scheduled for tomorrow.
Shareholders representing $12.5 million of the SPAC’s trust account agreed not to redeem their shares and to vote in favor of the extension in exchange for a cash payment of 3.3 cents per share monthly for the four-month extension. The cash payment will be made by Altitude’s CEO Gary Teplis.
Based on the SPAC’s December 2020 IPO of $300 million, the non-redemption commitments represent about 4% of Altitude’s trust.
The non-redemption agreements are intended to secure capital in the SPAC’s trust so it can continue to negotiate a potential business combination. Altitude said it is in active discussions for a potential business combination with a leading global travel technology business and intends to announce a definitive agreement in the coming weeks.
The Atlanta-based SPAC raised $300 million in a December 2020 IPO with plans to focus on travel, travel technology and travel-related businesses with an enterprise value of at least $1 billion. Read more.
