Newbury Street Acquisition in an 8-K said it has amended its merger agreement with Infinite Reality, a provider of immersive virtual experiences, such that the target agrees to pay the SPAC $200,000 a month for the extension period needed to close the deal. Funds will be deposited into the Ndewbury Street trust.
In addition, if the agreement is terminated for any reason other than a breach by the SPAC, the target agrees to pay all of Newbury Street's expenses incurred after March 31 up to $3 million. If the deal closes, Newbury Street agrees to pay for all transaction expenses up to $10 million.
The SPAC's current deadline is Sept. 23, following an extension approval by shareholders in March.
At that time, 7,744,085 shares (about 47%) were redeemed for almost $79 million. That left 8,917,715 shares outstanding.
At deal announcement in December, the transaction was expected to provide up to $128 million growth capital to Infinite Reality. That amount assumed no redemptions. There is a minimum cash condition of $50 million to close.
Newbury raised $120 million in an April 2021 IPO. Read more.
Source: Newbury Street Acquisition Amends Infinite Reality Deal; Target to Pay 0K/Mo. for Extensions