Acri Capital Acquisition in an 8-K said it revised the lock-up provision on its deal with Foxx Development, which now requires shareholders who own more than 5% of the outstanding shares to agree not to sell any shares until the earlier of: (A) six months after the merger closing, or (B) the date on which the last reported sale price of the stock hits at least $12 per share (as adjusted for share splits, share dividends, reorganizations and recapitalizations) for any 20 trading days within any 30-trading day period commencing after the closing.
Foxx Development is a Texas-based consumer electronics and integrated Internet-of-Things (IoT) solution company.
Acri announced the deal with Foxx in February. 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.
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.
