Northern Star III and IV Add to Non-Redemption Agreements

Northern Star III and Northern Star IV for the second time in three days announced further non-redemption agreements to shore up their finances ahead of extension votes.

In the latest agreements, identical to both , participating investors will hold onto 800,000 shares through the extension vote. In return, the parties would receive 200,000 sponsor shares if and when each SPAC completes a merger.

After postponing their respective extension votes last week, the SPACs on Feb. 28 disclosed they had secured non-redemption agreements, each covering 250,000 shares with a payout of 62,500 sponsor shares for holding onto their stock through completion of a busines combination.

Each SPAC faces a March 4 deadline, while both seek extensions until September.

The SPACs both said if the extension proposals are approved, shareholders would not see any reduction in their redemption price for future extensions or business combinations that could be subject to the 1% excise tax.

Each SPAC raised $350 million in a March 2021 to businesses primarily in the direct-to-consumer and digitally-disruptive e-commerce spaces.

Source: Northern Star III and IV Add to Non-Redemption Agreements