Aurora Technology-DIH Deal in Jeopardy as SPAC Faces Nasdaq Suspension

Aurora Technology Acquisition in an 8-K said its securities face suspension from the Nasdaq Global Market on Jan. 19 due to non-compliance with a listing rule requiring a minimum average market cap of $50 million.

The SPAC said it submitted a hearing request to appeal Nasdaq's determination. The request will not stay the suspension but will delay any delisting.

Problem is, after Aurora shareholders approved a merger last month with DIH Holding US, a robotics and virtual reality tech provider based in Beijing, the SPAC now faces a Feb. 7 deadline to obtain listing approval on the Nasdaq — of the merger's closing conditions. DIH is focused on the rehabilitation and human performance industry.

If Aurora is unable to successfully complete its listing prior to the deadline, it will terminate the business combination agreement and liquidate. The cash-out to shareholders would be approximately $11.09 per share, according to the filing.

The deal was announced almost a year ago, originally at an enterprise value of approximately $321.9 million. Aurora Technology said  4,815,153 shares were redeemed at $11.03 per share ahead of the merger vote in December, removing just over $53 million from the trust. The SPAC held about $58 million in trust as of last March. Read more.


Source: Aurora Technology-DIH Deal in Jeopardy as SPAC Faces Nasdaq Suspension