Contribution of $0.03 per month to Trust for shareholders that do not redeem.
Legacy Acquisition Corp. (LGC), the $300 million SPAC led by Edwin Rigaud, which recently announced its combination with Blue Impact Group, filed a definitive proxy this morning setting a shareholder vote date of October 22nd. Additionally, LGC made a few changes to their previously filed preliminary proxy, specifically, LGC will be asking shareholders to extend their current deadline from November 21, 2019 to December 21, 2019 (previously, it was January 21, 2020). Plus, there is an option to extend further, up to five more times, to May 20, 2020.
Most importantly, LGC will be contributing $0.03 per share each month to Trust for shareholders that do not redeem at the vote. That means, if Legacy needs to extend all the way to May, the sponsors will be contributing an additional $0.18, or a whopping $5.4 million in total (~$900,000 per month, if no one redeems). At that amount, you can bet that this team is going to be working very hard to make sure this transaction closes pretty quick.
However, this is a nice, straightforward contribution to trust at an attractive $0.03 per month, so redemptions shouldn’t be too excessive. It’s the safest play for an extension vote. Additionally, the Record Date has been set as September 6th, and shareholders can redeem up to October 18th.
You can find the proxy filing HERE.