Liquidation Alert: Electrum Special Acquisition Corporation
In an 8-K filed this morning, Electrum Special Acquisition Corporation, a $200 million SPAC IPO, announced its intentions to dissolve and liquidate the trust. Electrum Special estimates the per share redemption price for shareholders will be $10.48
As of the close of business on June 5, 2018, Electrum’s public shares will be deemed cancelled and will represent only the right to receive the redemption amount. Redemption of the shares will take place ten business days after June 5th, which is estimated to be June 19th.
As of Electrum’s most recent 10-Q, only $128.4 million remained in the Trust Account following redemptions from prior deadline extensions. The SPAC sponsor will lose the $7.025 million used to purchase the private placement warrants in the IPO that brought the per-share amount held in trust to an initial value of $10.00 per unit. The underwriters will lose their deferred underwriting fee as well, estimated to be approximately $5 million.
Electrum’s shares (ELEC) are currently trading at the trust value of $10.48