The New York Stock Exchange has begun delisting Class A common shares of Kingswood Acquisition. Trading in the SPAC’s stock was suspended after the market close July 13.
These steps were taken after Kingswood had fallen below the NYSE’s continued listing standard requiring a listed acquisition company to maintain an average global market capitalization of at least $50 million and average global market capitalization attributable to its publicly-held shares of at least $40 million — in each case over a consecutive 30 trading day period.
The SPAC has the right to a review of the decision by a committee of the NYSE Board of Directors. The NYSE will apply to the SEC to delist Kingswood’s securities upon completion of all procedures, including any appeal of the NYSE regulation staff’s decision.
Kingswood in a separate annnouncement said it would list on the OTC.
The news comes less than a week after Kingswood announced plans to merge with broker-dealer aggregator Wentworth Management Services.
Terms call for KWAC and Wentworth to become wholly-owned subsidiaries of Binah Capital Group.
As announced, the business combination is projected to generate approximately $30 million, assuming no redemptions and an anticipated $15 million capital raise, which will be used to pay transaction expenses and provide growth capital for the business. The implied pro forma equity value of the combined company is expected to be approximately $165 million, with a pro forma enterprise value of approximately $208 million.
Kingswood shareholders in May approved a deadline extension until Nov. 24, but redemptions in connection with that vote topped 87%. Read more.
