Northern Lights Acquisition, after postponing a shareholder vote yesterday on a proposed merger with Safe Harbor Financial, today in a regulatory filing said it would still attempt to close the deal by June 30, but pumped 10 cents a share ($1.15 million) into its trust account in case it needs to extend the deadline from today until Sept. 28.
Meanwhile, the SPAC said redemptions have reached 11,416,205 shares, or about 82% of shares outstanding.
However, as of yesterday the SPAC said Midtown East had purchased 1,599,496 shares, Verdun had purchased 1,180,376 shares and Vellar had purchased 1,025,000 shares in a forward purchase agreement at an average price per share of $10.21. Combined, that would put almost $39 million back into play.
Earlier in June the SPAC said it had secured a $50 million backstop. In addition, Northern Lights has commitments for a $60 million PIPE, although funding for the PIPE is contingent on redemptions not exceeding 90%.
As announced in February, the SPAC would acquire Safe Harbor for $185 million, of which $70 million will be paid in cash and $115 million in shares of Northern Lights Class A common stock. The deal is valued at $327 million.
Safe Harbor provides banking and financial services for the cannabis industry.
The SPAC’s shareholders are due to reconvene late this afternoon when a vote may be held. Read more.
