NewHold Investment II filed a proxy seeking stockholder approval that would give the SPAC the option of extending a merger deadline or liquidating early at management’s discretion.
The extension amendment would push the SPAC’s merger deadline back from April 25 to June 25, 2023. The termination amendment would give the company the discretion to redeem and liquidate on Dec. 28.
While management said there are “some promising deal opportunities” in the pipeline and discussions continue, challenging market conditions may impact its ability to announce a suitable merger by its deadline, making an extension necessary. However, because there is a risk that shares redeemed after Dec. 31 may be subject to the 1% excise tax imposed by the Inflation Reduction Act of 2022, “absent guidance from the IRS prior to Dec. 28, 2022, it may be in the best interest of the company’s stockholders to return cash in trust in 2022” if NewHold II cannot seal a deal by the extended deadline, management said in a press release.
The SPAC raised $175 million in an October 2021 IPO with an eye to acquiring one or more industrial technology businesses with an aggregate enterprise value of $700 million or greater. Read more.
