Carbon neutral-focused Redwoods Acquisition filed a proxy in which it seeks shareholder approval to extend its deal deadline from April 8 to July 8.
In order to extend the time for the SPAC to complete a business combination without the need for a separate stockholder vote under the charter, the sponsor must deposit into trust $1.15 nmillion (10 cents a share).
“Given current market conditions, the sponsor would like to pay extension fees that are substantially less than the $1,150,000 required for each three month extension under the existing charter,” Redwoods said in the proxy. “The company expects that there will be significant redemptions at the special meeting.”
Redwoods is focused on carbon neutral, energy storage and other new economic industries. The SPAC raised $115 milion in a March 2022 IPO.
Redwoods last month announced it had ended discussions about a potential merger with Xin Bo Xing Group, a new-material technology research and development company in Asia. Read more.
