KBL Merger Corp. IV (KBLM), filed a preliminary proxy this afternoon proposing to extend their current completion deadline another four months from July 9, 2020 to November 9, 2020. For reference, KBLM originally announced they had signed a definitive agreement with CannBioRx, back on July 26, 2019, almost a year ago.  But now they are also in danger of losing their Nasdaq listing since they have exceeded the requirement which says a SPAC must complete its business combination within 36 months of effectiveness of the IPO.  Since KBLM’s registration statement became effective on June 1, 2017, they’ve run over that time limit. KBLM has already stated that they intended to appeal Nasdaq’s decision, which buys them more time, however, if KBLM needs all four extension months, that means they have the potential to be a 41 month SPAC.

Nevertheless, KBLM does intend to contribute an additional $0.025 per month to non-redeeming shareholders for this extension BUT, in order to redeem you must also vote “Yes” or “No”.  And in order to be eligible to vote, you must be a shareholder of record as of the June 22, 2020 record date.  AND… today was the last day you could buy shares and have them settle T + 2 on June 22, 2020.  If you buy shares tomorrow, you will NOT be a shareholder of record and will not be allowed to vote and subsequently redeem.  It’s important to note that you can still redeem regardless of whether you vote yes or no, but the important item is that you have to vote, period.

However, since there is only approximately $11.4 million currently held in trust, with 1,114,267 shares capable of redeeming, this does not affect too many shareholders.  But it will be interesting to see the results of this vote nonetheless.  Especially given how long this transaction has taken to close. We’ll get to find out in less than a month…