Ace Global Business Acquisition today announced it terminated a deal with LE Worldwide. THe SPAC said it will redeem shares and dissolve. This news comes a day after the SPAC disclosed it had been delisted from the Nasdaq. Ace Global had fallen out of compliance with a listing rule that a SPAC must complete a merger within 36 months of its IPO registration.
The deal termination “was as a result of concern over LE Worldwide’s ability to continue its operations post-business combination due to significant decline in its business revenue, liquidity issues with certain bank financings and uncertainty over the supply of the tools and products that it sells,” the parties said in a statement. On April 12, LE Worldwide’s related party manufacturer and main supplier was served with a winding-up petition.
Ace Global lost nearly half of its cash in trust to redemptions ahead of an extension vote in January 2023. The SPAC raised about $46 million in an IPO more than three years ago.
LE Worldwide produces Light-Emitting Diode technology, with one of the largest LED product manufacturing and research facilities in Asia. The SPAC in September reduced the merger consideration from $150 million to $110 million. Read more.
