African Gold Acquisition said it will redeem shares and shut down after the NYSE determined to delist the SPAC from the exchange for failure to file SEC reports from 2022.
The stock will stop trading Sept. 8, while redemptions are expected to be completed by Sept. 11.
African Gold’s former CFO Cooper J. Morgenthau pleaded guilty in January to orchestrating a scheme in which he stole more than $5 million from the company and from investors in two other SPACs that he incorporated. He was later sentenced to three years in prison.
The funds embezzled from African Gold Acquisition did not involve the SPAC’s trust account, although the company agred to pay a $103,591 civil monetary penalty to the SEC for violating Exchange Act provisions relating to internal controls, reporting, and recordkeeping.
The SPAC raised $414 million in a February 2021 IPO. Read more.
