Hawks Acquisition in an 8-K said its sponsor will deposit 3 cents a share, not to exceed $125,000 a month, for each month of an extension that would be in effect until Nov. 13. Today's required deposit has been made, according to the filing.
Last week shareholders voted to approve the extension, although redemptions totaling $192.54 million left approximately $40.64 million in trust prior to the sponsor's anticipated monthly contributions going forward. Ahead of the vote, Hawks said it would not make any permitted working capital withdrawals (capped annually at $1 million) from the trust due to the expected redemptions.
Hawks raised $200 million in an October 2021 IPO to focus on businesses that have either emerged from a restructuring or private companies that are burdened by leveraged capital structures.
The SPAC in January had disclosed that the nyse determined it is not in compliance with the minimum 300 shareholders requirement to remain listed on the exchange. Hawks at the time said it would present a plan to regain compliance. Read more.
Source: Hawks Acquisition Sweetens Trust for Extension Through November