Northern Star Investment II announced that because it will not be able to complete a deal by its Jan. 28 deadline, it will liquidate the trust. The SPAC expects the NYSE American to delist the stock.
However, in an unusual move the SPAC has determined to continue its corporate existence following the distribution of funds in the trust, continuing in an effort to acquire a business.
The SPAC in a press release said its board and management has determined that it would be in the best interest of the company to allow public share holders to continue to retain their shares following the distribution and have the chance to participate in a transaction that the company may potentially enter into in the future.
This is also expected to allow the SPAC to continue to trade on the OTC Pink until it completes a deal. As a result Northern Star II intends to amend its charter to remove provisions that apply to SPACs, including the requirement to cancel the public shares following distribution of the funds held in trust.
The liquidation amount will be approximately $10.48 per share. The SPAC currently has 1,620,989 outstanding shares.
In connection with the distribution, units will automatically and mandatorily separate into their component parts — one share and one-fifth of a warrant — immediately prior to the distribution. There will be no payment for warrants, which will remain outstanding.
Following a January 2021 IPO, the SPAC was initially focused on acquisition targets primarily in the beauty, wellness, self-care, fashion, e-commerce, subscription and digital-media space.
Sister SPACs Northern Star III and IV were delisted last month from the NYSE after each fell below the $40 million minimum market cap. The SPACs now trade OTC and intend to seek a listing on the Nasdaq prior to or in connection with a merger. Read more.
