Tiberius Acquisition Corp. (TIBR), announced today that in addition to their shareholder vote to complete their business combination with International General Insurance Holdings Limited (“IGI”), on March 13th, 2020, they will also be holding an extension vote on March 19th.

However, this is not unusual. Trinity Merger Corp., which is now Broadmark Realty (BRMK), had to do something similar since their vote date was very close to their expiration date as well.  A SPAC in that situation runs the risk of having a deal voted through, but running over their allotted time due to closing mechanics.  So think of this extension vote as Tiberius’s “fail-safe” insurance policy…which is fitting since they are buying IGI.

However, the particulars are that the extension vote will take place a few days after the combination vote, so this is only going to happen if they can’t get the paperwork done, or there’s a snowstorm or God forbid, there isn’t enough staff around due to the Coronavirus to actually mechanically close the deal.  It would be a real kick in the pants to have come this far and have a deal NOT close due to a technicality such as needing one more day for paperwork.

As such, there is no contribution to trust for Tiberius’s extension (it’s not that kind of an extension) and they are only asking for one month by extending to April 20th, 2020. Furthermore, this extension might not even happen if they can close the combination ahead of the extension vote.

However, as with any shareholder vote, shareholders will have the ability to redeem their shares at Tiberius’s extension vote. However, only shareholders who did not elect to redeem previously at the combination vote will be eligible to redeem at the extension vote.  And as is typical for SPACs, the redemption deadline to redeem at the extension vote will be two days prior, or March 17th.  Keep in mind that the combination vote date is March 13th, which means we will most likely not get any vote/redemption results right away since any information could potentially sway the extension results.  (Record date is February 14th, 2020)

All told, Tiberius has secured all the necessary regulatory approvals now from the UK Prudential Regulation Authority (PRA), Financial Conduct Authority (FCA), Bermuda Monetary Authority (BMA) and Dubai Financial Services Authority (DFSA), so it’s full steam ahead.  We should have a result in roughly three weeks time.