This afternoon, Modern Media Acquisition Corp. (MMDM), released the details of their shareholder vote to approve their extension deadline to September 17, 2019, from June 17, 2019.
Per the 8-K, 13,350,654 shares of the Company’s common stock elected to redeem, however, a redemption price was not provided. Hence we don’t know exactly how much cash is left in trust. However, if we use the previously stated estimated redemption price of $10.46 per share, then we can assume $139,647,841 was removed from the trust. Additionally, MMDM also stated that approximately 6,581,665 shares of Common Stock will remain issued and outstanding. However, that also includes the sponsor’s promote, which is 5,175,000 shares. Therefore, using the same figure of $10.46, we can speculate that the trust currently holds $14,713,715.9, based on 1,406,665 public shares.
To sum up, $139.6 million is a significant amount of redemptions, but since MMDM did not offer any contribution to trust for the extension, we have to assume that they actually wanted shareholders to redeem. The existing Akazoo shareholders were previously stated to receive a cash distribution of up to $20 million, but that was contingent on the cash available in MMDM’s trust account, after the payment of transaction fees and expenses and any redemptions that exceeded $110 million. So either Akazoo is willing to accept a smaller cash payment, or MMDM is going to have to get a PIPE.
Either way, MMDM now has until September 17th to close this deal. Stay tuned.