Big Rock Partners (BRPA) Releases Extension Vote #4 Info

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Big Rock Partners (BRPA) Releases Extension Vote #4 Info

Mar 24, 2020 INTEL by SPACInsider

Early this morning, Big Rock Partners Acquisition Corp. (BRPA), released the details of their shareholder vote to approve their extension deadline to March 23, 2019, from July 23, 2020.  The extension was approved and as a result, the Company’s Sponsor will be contributing $0.02 to the trust account per month for each public share that was not redeemed, or $11,610.56

Per the 8-K, 2,433,721 shares of the Company’s common stock elected to redeem, which resulted in approximately $26.1 million (at an estimated $10.71 per share) being removed from the Trust Account. Furthermore, approximately 580,528 public shares will remain issued and outstanding, which means that the Trust Account is now currently estimated to hold $6.217 million, down from their estimated $32.3 million held in trust before the vote.

BRPA now has four months to announce and close a deal, so hopefully we’ll all be in a much improved situation by then. Additionally, a significantly reduced amount of cash in trust could possibly work for them, not against, since now BRPA can potentially arrange additional financing to replace any needed cash for a transaction (and at a price below $10.00). The question is, will there be an institutional appetite in this new world?  And by July 23rd? We’re all going to have to wait and see.

You can review the results of the vote HERE.

 

 

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