Yotta Acquisition after formally terminating a deal with NaturalShrimp said the former target has not paid the $3 million termination fee to the SPAC, as specified in the business combination agreement.
Yotta said it notifed NaturalShrimp by letter Aug. l0 that it was ending the deal. The SPAC alleged NaturalShrimp failed to meet its obligation to share the costs associated with the deadline extension on the deal. The costs were to be shared equally, although Yotta claims in an 8-K filing that NatrualShrimp failed to provide its share of the expenses.portion despite being notified of its obligation to do so.
NaturalShrimp has not responded to the SPAC's termination letter, but in July sent a notification to Yotta that it was terminating the deal.
Yotta said it does not believe NaturalShrimp has a legal basis under the agreement to terminate the deal, noting that NaturalShrimp was not authorized to terminate the agreement when it was allegedly in breach of its terms.
Yotta also a demand for the $3 million termination fee.
Yotta and NaturalShrimp announced the $275 million deal in October 2022. Read more.