Northern Lights Acquisition today said it amended its unit purchase agreement with Safe Harbor Financial to defer part of the cash consideration on the deal, following shareholder approval of the merger in June.
The SPAC also extended the outside closing date to Sept. 28.
The amendment defers $30 million of the $70 million due to the seller at closing. The extension provides additional time to complete the merger as it awaits regulatory approval, while the deferral of the cash consideration will help the SPAC support post-closing activities, according to the press release.
According to an 8-K filed today, the SPAC will pay the deferred cash consideration in six equal installments of $5.375 million, payable beginning on the first business day following Jan. 1, 2023 and on the first business day of each of the following five fiscal quarters, for a total of $32.25 million. The amount includes 5% annualized interest.
Safe Harbor provides banking and financial services for the cannabis industry. Read more.
