Redwoods Acquisition in a proxy filing called a March 31 meeting for shareholders to consider a deadline extension proposal that would give the SPAC until July 4 to complete a deal, with further monthly extensions available through Dec. 4.
Under the original plan, the SPAC's sponsor, in return, would deposit $270,000 into trust for the initial three0month extension, plus $90,000 for each month required beyond July. However, a supplement to the proxy shows the sponsor would increase the deposit to $360,000 for the first three months, plus $120,000 for each month thereafter.
Redwoods had previously warned it “expects that there will be significant redemptions at the special meeting” and has sweetened the deposit offer in an apparent effort to discourage those potential share redemptions.
The SPAC is focused on carbon neutral, energy storage and other new economic industries. The SPAC raised $115 milion in a March 2022 IPO.
Redwoods in January announced it had ended discussions about a potential merger with Xin Bo Xing Group, a new-material technology research and development company in Asia. Read more.
Source: Redwoods Acquisition Sets Vote Date on 3-Month Extension Plan