Early this afternoon, Gordon Pointe Acquisition Corp. (GPAQ), released the details of their shareholder vote to approve their extension deadline to October 31, 2019, from July 30, 2019. As a result, the Company’s Sponsor will be contributing $0.10 to the trust account for each public share that was not redeemed. Plus, if the Company elects to further extend the deadline to complete an initial business combination beyond October 31, 2019, the Sponsors will contribute $0.033 for each 30-day period thereafter, for up to three additional 30-day periods.
Per the 8-K, 1,446,461 shares of the Company’s common stock elected to redeem, which resulted in $14,962,644.55 (or approximately $10.34 per share) being removed from the Trust Account. Furthermore, approximately 11,053,539 public shares will remain issued and outstanding, which means that the Trust Account is now currently estimated to hold $114,293,593, down from their estimated $129.3 million held in trust before the vote.
All told, this was a pretty good extension vote. Gordon Pointe got it right. The contribution to extend was a straightforward $0.10 per share, without investors needing to “game out” how many shareholders will remain, the way we’ve seen in the flat lump sum contribution extension votes of late. As a result, only $15 million worth redeemed leaving the SPAC with a decent amount in Trust for a future acquisition. Let’s hope they bring back a great one.