Northern Lights Acquisition entered into a redemption backstop arrangement with an OTC Equity Prepaid Forward Transaction agreement for up to $50 million with Midtown East Management. The backstop offers a measure of protdction against redemptions as the SPAC moves forward with the planned acquisition of Safe Harbor Financial, a financial services provider to the cannabis industry.
Midtown East has agreed to not redeem any public shares.
The redemption backstop is in addition to the $60 million PIPE commitment from certain accredited investors announced in February.
The SPAC intends to acquire Safe Harbor for $185 million, of which $70 million will be paid in cash and $115 million in shares. A shareholder vote is set for June 24, one week from today. Read more.
