TKK Symphony Acquisition Corporation (TKKS) announced at 8:00 p.m. this evening that it would be extending the expiration of its tender offer to purchase up to 25,000,000 shares at a purchase price of $10.28 (plus accrued interest) for a fifth time. Yes, they went for a fifth extension….. The tender offer will now expire at 5:00 p.m. New York City time, on Monday, February 10, 2020, unless further extended or earlier terminated.
If you’re asking why, well, that’s because rather than work with the results TKKS had at the last deadline, on January 13th, which were much improved (all things considered), instead they decided to extend again to January 23rd, presumably to try and squeeze out a few more non-tenderers. However, this last extension seems to have had the opposite effect. That’s because at the last deadline, only 21,295,878 ordinary shares had been tendered out of 25,000,000, leaving approximately $38 million in trust. However, in the last 10 ten days, investors must have gotten spooked. As of today, 24,560,639 ordinary shares have now been tendered, basically reversing the previously results. That means only 439,361 shares remain for an approximate trust value of $4.5 million.
TKKS is running out of time. Their completion deadline is February 20th, and by continually extending, they’ve tested the patience of investors and now TKKS is in the unfortunate position of having to start from almost square one without a safety net since they’re set to expire in less than four weeks. Is there a possibility they could extend for a sixth time? Well, their new deadline is February 10th, which leaves only 10 days between then and their expiration deadline of February 20th. Technically, it’s possible. But at this point, it would be the equivalent of a Hail Mary. Frankly, forget the fifth extension, the FOURTH extension seemed improbable since if they had $38 million at that point, you don’t give investors more time to change their mind. You close. But we’re not privy to what the conversation is between the SPAC and the seller, so let’s give the team the benefit of the doubt, but clearly $38 million was not enough.
This one is going to be close and the team has their work cut out for them. We have another 18 days to see what happens…stay tuned.