Boxwood Merger Corp. (BWMC), which recently announced they had secured additional financing for their pending combination with Atlas Intermediate Holdings, LLC, also announced earlier this afternoon that they would be adjourning their January 30th shareholder vote. The new vote date is now February 6th, with a new redemption deadline of February 4th.
As for why Boxwood is moving their vote date again, today’s press release stated that, “Based on positive investor feedback to the financing arrangements announced yesterday in support of Boxwood’s proposed business combination (the “business combination”) with Atlas Intermediate Holdings LLC (“Atlas”), Boxwood is adjourning the special meeting to provide investors with additional time to consider the now fully-financed business combination.”
Sure enough, BWMC did trade up slightly upon announcement of their fully financed transaction, but it’s still trading a little below estimated trust value. By moving the vote date out an additional week, it does give investors time to do some work on the deal, but more importantly, it gives Boxwood additional time to market the new changes and see if their capital markets advisors can get it trading north of trust. Keep in mind that Boxwood doesn’t expire until November 20, 2020, and this is only their second adjournment and it’s after some significant changes to their deal. Plus, a one-week delay is not super meaningful in the grand scheme of things, as compared to say, TKKS, which is running up on their SPAC deadline in less than 4 weeks. There isn’t the same kind of urgency.
Having said that, if Boxwood needs to adjourn again on February 6th, that will be very telling. If so, it could mean they weren’t getting much traction with the financing changes. We’ll need to wait and see. Stay tuned for any further updates.