Northern Star III and IV have each signed another non-redemption agreement — for 508,000 and 600,000 shares, respectively, according to regulatory filings. These agreements come just a week after each SPAC signed an NRA with unaffiliated third-party investors who agreed to not redeem 200,000 shares each.
Northern Star III in the latest agreement will distribute 101,600 to the non-redeeming investors.
Northern Star IV will provide 120,000 shares to the participants in its latest NRA. The SPAC filed a proxy earlier this month for another deadline extension. Northern Star IV in March disclosed that stockholders redeemed 89% of shares ahead of a previous extension vote. Even with a non-redemption agreement in place covering 1.6 million shares, the SPAC was left with about 4.2 million shares outstanding.
Each SPAC raised $350 million in March 2021 IPOs, although redemptions have cut deeply into the trusts of both since then.
Both SPACs have been targeting businesses primarily in the direct-to-consumer and digitally-disruptive e-commerce spaces. Read more.
