Globis Acquisition in an 8-K filing said it would delay until today a shareholder vote on its proposed merger with African agribusiness Forafric. The vote was originally set for today but postponed so the SPAC could sollicit more ballots in support of several amendments, including a forward purchase agreement.
Under the FPA proposal, investors may elect to sell and transfer to the company up to 1.5 million Globis shares at $10.80 each.
Globis also amended the merger agreement with Forafric to defer the closing payment and that Globis will pay $20 million to the seller plus interest on the the outstanding amount from the date of the merger closing up to the date of payment. Interest would be set at 8% annually with the deferred to be made on the first anniversary of the the closing. If any amount remains unpaid at that time, Globis would be on the hook for the outstanding amount plus 12% interest.
The deal is valued at $300 million.
Forafric provides agribusiness lifecycle operations, from sourcing to processing, for sales and distribution of branded products. Read more.
