ALLEGRO MERGER CORP. (ALGR)
This morning, Allegro Merger Corp., released the details of their shareholder vote to approve moving their previously extended deadline one month, from March 31 to April 30, 2020.
Per the 8-K, the extension was approved, but none of the redemption details were provided, i.e., how many shares were redeemed and at what price. However, at the bottom of the results was this:
“On or before March 31, 2020, the Company will determine whether to effectuate the Extension.”
In essence, it sounds like Allegro is weighing whether it’s worth it to continue in the current “coronavirus climate” and terminating the transaction is now a real possibility. Keep in mind that Allegro is trying to combine with TGI Fridays, which is a restaurant chain focused on casual dining. Not a whole lot of people going out to restaurants these days….
We should know by next Tuesday, March 31st, if Allegro continues. If so, they’ll have only one month to try and close their combination with TGI Fridays. If they decide to “not effectuate the extension”, Allegro will run out their clock and be forced to liquidate. Alternatively, they can also opt to have another extension vote in April.
We’ll have to wait and see. Stay tuned…