Burgundy Technology Acquisition announced that it will redeem all of its outstanding shares of Class A common stock, effective March 1 because the SPAC will not close a deal within the required time period.
The per-share redemption price will be approximately $10.05, the SPAC said in a news release. The balance of the trust as of Dec. 31 was approximately $347 million, including approximately $34,664 in interest and dividend income. Burgundy Technology’s IPO of 34.5 million units was in August 2020 when the SPAC said it would target the tech sector. That offering was downsized from an initial 40 million units.
While shares will be redeemed, the attached warrants will be worthless.
Burgundy Technology cut its deal deadline to 18 months from the initial 24. Its articles of association would have allowed the SPAC to extend its deadline by six months if the sponsor had opted to deposit 3 and a third cents per share monthly into the SPAC’s trust. Read more.
