Sagaliam Acquisition in an 8-K today disclosed that its merger partner, Arabian Entertainment, has terminated the deal after the SPAC failed to secure subscription agreements for at least 50% of the $25 million minimum cash amount by the December 2022 deadline.
“Under the terms of the Business Combination Agreement, the termination right exercised by the Company obligates Sagaliam to pay a termination fee of $1,000,000 no later than two business days after the date of such termination,” the 8-K states.
However, Sagaliam CEO Barry Kostiner in the filing said he disputes the validity of the $1 million termination fee and has submitted a proposal to Sagaliam for the acquisition of Sagaliam Sponsor by an independent third party with the intent of presenting an alternative acquisition to Arabian Entertainment. The company and Sagaliam are currently in discussions regarding any termination fee payment.
The transaction had been expected to provide AEC up to $151.5 million, including $35 million from an anticipated PIPE offering and $116.5 million of SPAC cash in trust, which assumed no redemptions. Read more.
