TKK Symphony (TKKS) Might Extend Their Deadline
by Kristi Marvin on 2020-02-13 at 10:45am

TKK Symphony Acquisition Corporation (TKKS), which announced last night that they would be further extending the expiration of its tender offer for a seventh time, also announced that if they were not able to close their combination with Glory Star New Media by February 20th, they would be issuing a dividend of one warrant to purchase one-half of one ordinary share to outstanding shareholders as of Februrary 21, 2020. However, the questions was, why?  Well, we have an answer now and it goes back to TKKS’s IPO prospectus.

“We will have until 18 months from the consummation of this offering to consummate our initial business combination. However, if we anticipate that we may not be able to consummate our initial business combination within 18 months, we may, by resolution of our board of directors, extend the period of time to consummate a business combination for no more than four (4) months as set out below.

Pursuant to the terms of our amended and restated memorandum and articles of association and the trust agreement to be entered into between us and Continental Stock Transfer & Trust Company on the date of this prospectus, in order for the time available for us to consummate our initial business combination to be extended, we must issue to holders of our public shares by way of a dividend one warrant to purchase one half of an ordinary share for an aggregate of up to 22,000,000 potential extension warrants, or 25,300,000 potential extension warrants if the underwriters’ over-allotment option is exercised in full.”

In a nutshell, TKKS is going to extend their completion deadline four months if they can’t close by the 20th.  And rather than the typical two or three cent contribution to trust that we usually see in an extension, TKKS will be issuing a warrant dividend instead.  If you’ve previously tendered your share, they’ll still remain outstanding at February 20th, until they are paid from the trust.  So tendered shares will still be entitled to the warrant dividend.

All of this means that regardless of what the trust looks like at the 20th, even if the cash in trust is fully depleted due to the tender offer, TKKS will have four more months to go get a PIPE and replace that cash (if they decide to do that).  Plus, warrant holders will get another 1/2 warrant.  Or, TKKS and Glory Star can just decide to close regardless of how much cash they have.  However, the fact remains that TKKS would be adding a significant amount of warrants to an already sizeable overhang if they extend, so ideally, TKKS closes before the 20th.

Regardless, there was no mention of a four-month extension at all in yesterday’s press release, so it seems poorly executed.  Stay tuned for further developments.

 

 

 

TKK Symphony (TKKS) Might Extend Their Deadline
Recent Posts
by Nicholas Alan Clayton on 2025-07-08 at 12:36pm

M3-Brigade V (NASDAQ:MBAV) has entered into a definitive agreement to combine with crypto treasury firm ReserveOne, assembling about $1 billion in equity funding. ReserveOne is setting up a diversified Bitcoin and digital asset treasury with a portion of its investments going towards blockchain infrastructure and venture raises. The combined company is expected to trade on...

by Nicholas Alan Clayton on 2025-07-08 at 8:18am

At the SPAC of Dawn As the SPAC market has warmed in 2025, only 21 of the 70 SPACs (30%) that have IPO’d thus far have overfunded their trusts to draw in investors and none of these funded to more than 101%. By contrast, 87% of 2023 SPACs were overfunded – some to as high...

by Nicholas Alan Clayton on 2025-07-07 at 9:05am

Emmis Acquisition Corporation (NASDAQ:EMISU) has filed for a $100 million SPAC to take a look at the manufacturing sector after a few unique wrinkles in their IPO process. Initial investors are set to receive one right to a 1/10 share in each unit purchased and the SPAC will have 18 months to complete a business...

by Nicholas Alan Clayton on 2025-07-07 at 8:50am

Chenghe III (NASDAQ:CHEC.U) has filed for a $110 million SPAC to continue the team’s growing series while turning to a new underwriter. The new SPAC is offering investors a 1/2 warrant in each unit and no overfunding of the trust, but it will need to complete a business combination within 18 months of its IPO...

by Nicholas Alan Clayton on 2025-07-07 at 8:22am

At the SPAC of Dawn Futures sit slightly red as investors return from holidays of barbecues and fireworks to renewed concerns about where US President Donald Trump’s tariff policy might hamper trade. The latest shift produced a further one-month delay in most of the tariffs Trump has threatened to impose as his administration continues to...

logo

Copyright © 2025 SPACInsider, Inc. All Rights Reserved