LEISURE ACQUISITION CORP. (LACQ)
Leisure Acquisition Corp. (LACQ), as expected, filed a definitive proxy this evening setting their extension vote date for Novmber 26, 2019. Leisure is asking for four additional months to complete a business combination, which would move their deadline date to April 5, 2020. Furthermore, the new definitive proxy now shows a $0.03 contribution to trust each month for shareholders that do not redeem at the vote. So if Leisure needs all four months, that will be an additional $0.12 in aggregate.
This is a fairly straightforward extension vote with an attractive $0.03 contribution to trust. It’s simple, doesn’t require a lot “gaming out” what other shareholders are going to do, and they’re only asking for four more months (not six). As a result, redemptions should be pretty reasonable. Remember, there will always be some redemptions at any vote, but this type of contribution should protect most of the cash in trust.
One other observation: It’s October 28th and Leisure has set a Record Date of October 18th AND they’ve already filed their Definitive Proxy. So why is the vote date set so far out on November 26th? Interesting. And they’ve only asked for four months, which is about the right amount of time a SPAC needs to close a combination. Could it be that they’re getting ready to announce something? Maybe they’re giving themselves a two week cushion to see how an announced transaction is received. We’ll have to wait and see, but my radar is pinging…
Record Date: October 18, 2019
Redemption Deadline: November 22, 2019
Vote Date: November 26, 2019
Contribution to Trust: $0.03 per share/month