KBL Merger Corp. IV (KBLM), filed a definitive proxy this evening for their upcoming extension vote on April 8th, to extend their deadline from April 9, 2020 to July 9, 2020. However, KBLM is offering a very, very attractive $55,000 per month contribution to trust for non-redeeming shareholders, which equates to, at a minimum (assuming no one redeems) $0.049 per share per month, up to a maximum of $0.099 per month…for three months.
So let’s assume the maximum amount of shareholders redeem and everyone who didn’t redeem is entitled to $0.099 per month. That means those shareholders are entitled to receive $0.297 total if all three months are needed for KBLM to complete their combination with CannBioRx. Which, in the current climate, an additional three months is not that out of the realm of possibility. There are only 1,114,267 SPAC shares left currently outstanding, but with a very juicy contribution to trust, this should definitely make any potential redeemers pause and reconsider.
One important note: in order to redeem you MUST be a shareholder of record, of which, the record date is March 12, 2020. So, if you bought KBLM’s shares and they settled after March 12th, you cannot vote and therefore, cannot be eligible to redeem.
Bottom line, preservation of cash is important and the Coronavirus is cashing in chits…going to make teams pay one way or another.