Armada Acquisition I in an 8-K filing today disclosed that it will not lower the estimated redemption price per share for the SPAC's potential tax liabilities on redemptions, as it previously announced earlier this week.
The SPAC on Tuesday filed a proxy supplement relating to the interpretation and operation of the Inflation Reduction Act of 2022, saying it would use a portion of the accrued interest in trust to pay any excise tax on redeemed shares. In an about-face, the SPAC today said the estimated redemption price per share will be approximately $10.17 at the time of the annual meeting, as originally reported.
Armada I also postponed the shareholders meeting tomorrow until Jan. 30, at which time the SPAC's investors are expected to vote on a merger deadline extension that would grant management up to six additional months to close a deal.
The SPAC has a merger agreement in hand with Rezolve, a mobile commerce platform. At deal announcement in December 2021, the combined business was expected to receive $150 million from Armada's trust, assuming no redemptions, together with approximately $40 million in additional investment proceeds. Read more.
Source: Armada Acquisition I Backtracks on Tapping Trust to Pay Excise Taxes, Pushes Extension Vote to Jan. 30