Modern Media Acquisition Corp. (MMDM), announced this morning that they are moving the date of their shareholder vote forward two days to June 14th, and are now asking for a three-month extension, not two months.
Originally, MMDM scheduled their special meeting to vote on their proposed business combination with Akazoo Ltd. for June 12th. However, since the new date is now the 14th, the deadline for shareholders to exercise the right to redeem has been changed as well. The new redemption deadline is June 12th (two days before the vote). Additionally, the extension proposal has been changed to reflect a new deadline of September 17th, instead of August 17th.
Modern Media’s previous press release stated that, “The parties currently anticipate that all conditions precedent to the consummation of the Business Transaction will be satisfied by July 15, 2019.” However, given that they are now asking for a three-month extension, that timeline looks unlikely.
As a reminder, Modern Media is not offering any additional contribution to trust to extend. However, there is a condition to closing that the trust account needs to have a minimum of $60 million at combination.
As to why they moved the meeting date (which is now on a Friday), perhaps because Friday news releases are not as widely followed. Especially during summer months when people tend to want skip out of work early. As a result, there is an entire weekend in between Friday and Monday and usually the hope is that shareholders forget about whatever it is you need to 8-K. Since Modern Media is not offering any contribution to trust for their extension, redemptions will probably be significant and that kind of news is generally not something companies enjoy releasing.