Alberton Acquisition Corp. (ALAC), put out an 8-K this afternoon regarding the issuance of an unsecured promissory note for $1,148,800, but the entity to who it was issued was what tipped off that they had announced…..something. The Note was issued to Global Nature Investment Holdings Limited (“Global Nature”), in connection with a non-binding letter of intent, that was entered into as of September 13th with Alberton, to consummate a potential business combination. However, there was no additional information provided regarding the potential transaction.
However, what we do know is that Global Nature is “a wholly owned subsidiary of CITIC Capital, an investment advisory firm that manages over US$26 billion of capital through its multi-asset class platform.” A google search of “Global Nature” or “Global Nature Citic” yielded no results, so it looks like we’ll have to wait for the official announcement for more information. Although, the 8-K makes it quite clear that this is a “non-binding LOI, and that Alberton has not entered into any definitive agreements”.
As to why announce this at all right now, it seems certain stipulations within the note are pegged to today’s date, September 24th. Per the Note:
“...in the event that the Payee notifies Alberton that it does not wish to proceed with the Qualified Business Combination (the “Withdrawal Request”), Alberton shall only be obligated to repay the Note, as follows: (i) the full principal amount of the Note within 5 business days of such Withdrawal Request if such Withdrawal Request is given on or before September 24, 2019; (ii) 50% of the principal amount of the Note within 5 business days of such Withdrawal Request if the Withdrawal Request is given from after September 24, 2019 and on or before October 15, 2019 or the date the subscription amount of this Note is transferred into the trust account (whichever is later); (iii) 50% of the principal amount of the Note as soon as possible with best efforts but no later than 5 business days after Alberton’s business combination if the Withdrawal Request is given from after October 15, 2019 or the date the subscription amount of this Note is transferred into the trust account (whichever is later); or (iv) the full principal amount of the Note as soon as possible with best efforts but no later than 5 business days after Alberton’s business combination or the date of expiry of the term of Alberton (whichever is earlier), if the parties have not entered into a definitive agreement with regard to the Qualified Business Combination within 45 days from the date of the Note as a result of the disagreement on the valuation of the Qualified Business Combination. We have not received any Withdrawal Request as of the date of this report.”
In summary, it is clear that Alberton is still in the negotiation stage, but clearly they are close as a result of issuance of the Note. However, since this SPAC has not “FORMALLY” announced, it will remain in the “Searching” column for data purposes. However, it would appear we should get an announcement most likely before October 15th, since it’s starts to become prohibitively expensive not to, after that.