Acri Capital Acquisition in a proxy filing called an April 9 meeting for shareholders to vote on a deadline extension proposal that would give the SPAC until Jan. 14. 2025 to complete a merger. This would be the SPAC’s third deadline extension.
Acri last week announced a merger agreement with Foxx Development, a Texas based consumer electronics and integrated Internet-of-Things (IoT) solution company. Terms call for the SPAC to issue $50 million in stock. In addition, up to 4.2 million earnout shares may be issued to Foxx stockholders upon achievement of certain financial performance milestones for the fiscal years ending June 30, 2024 and June 30, 2025.
If approved, upon closing the combined company expects to list on the Nasdaq.
If shareholders vote in favor of the extension, the Acri sponsor has agreed to deposit the lesser of $50,000 or 3.3 cents a share for all remaining public shares. If redemptions hit 80% or more, the monthly deposit would be $21,483.33.
Established in 2017, Foxx caters to both retail and institutional clients. The company sells a range of products including mobile phones, tablets and other consumer electronics devices throughout the United States, and is in the process of developing and distributing end-to-end communication terminals and IoT solutions.
Acri had raised $86.25 million in its June 2022 IPO, with plans to target technology-enabled sectors in North America. The SPAC last year stepped down to the Nasdaq Capital Market after falling below the Nasdaq’s $50 million minimum market cap requirement. Read more.
