Early this afternoon, Big Rock Partners Acquisition Corp. (BRPA), released the details of their shareholder vote to approve their extension deadline to November 22, 2019, from August 22, 2019. As a result, the Company’s Sponsor will be contributing $0.02 to the trust account per month for each public share that was not redeemed, or $78,666.80
Per the 8-K, 846,888 shares of the Company’s common stock elected to redeem, which resulted in approximately $8.9 million (at an estimated $10.49 per share) being removed from the Trust Account. Furthermore, approximately 3,933,340 public shares will remain issued and outstanding, which means that the Trust Account is now currently estimated to hold $41.3 million, down from their estimated $50.2 million held in trust before the vote.
If you recall, BRPA has extended three times previously: twice for $0.10 for each three-month extension and once for $0.02 per month for a third three-month extension. Today’s fourth extension is for $0.02 per month as well, which if they extend for the full three months to November 22nd, will mean BRPA will have contributed $0.32 total to the trust to extend their deadline for one year.
Three months is a tight window to announce and close a deal, so will they need to extend even further? Remains to be seen. However, if they do not announce something shortly, there is a possibility this SPAC opts to liquidate rather than indefinitely having to contribute additional funds to the trust. Let’s hope they bring a great deal instead.