Yotta Acquisition in a proxy filing said it will ask shareholders for another deadline extension — up to Aug. 22, 2024.
The SPAC’s amended charter and trust agreement currently provide that Yotta has the right to extend the deadline up to April 22, 2024 by depositing $120,000 for each one-month extension. The SPAC has already extended the deadline from April 22 to Sept. 22 with total desposits of $600,000.
The sponsor “no longer wishes to pay a Monthly Extension Payment into the Trust Account,” the proxy states. If the latest extension proposal is approved, no additional deposits would be made into trust as shareholder consideration for the extra time.
The SPAC will dissolve if the extension proposal is not approved and currently required extension payments are not made through April of next year.
Yotta’s former merger partner NaturalShrimp terminated a deal with the SPAC in July. Yotta disclosed last month that the aqua-tech seafood company had not paid the $3 million termination fee to the SPAC, as specified in the business combination agreement. Yotta alleged NaturalShrimp failed to meet its obligation to share the costs associated with the deadline extension on the deal. The costs were to be shared equally, although Yotta claims in an 8-K filing that NaturalShrimp failed to provide its share of the expenses despite being notified of its obligation to do so.
The fee was not mentioned in the SPAC’s proxy filing regarding an extension. Read more.
