The meeting, which was originally supposed to be held September 16th, but was first postponed to today, September 22nd, has been further postponed to next Wednesday, September 29th at 10:00 am. However, it’s for a good reason. CTAC and Kore have managed to secure additional funding to support its combination.
As background, CTAC and Kore, despite a heavy number of redemptions by shareholders, was still able to meet its minimum cash closing condition of $345 million thanks to its backstop arrangement with Fortress Credit Corp., which allowed the Company to borrow up to $120 million via unsecured exchangeable notes due in 2028. However, in the past week, CTAC and Kore have rounded up an additional $65 million in financing on top of that.
$40 million will come from certain holders of preferred shares of the ultimate parent entity of KORE Wireless Group, Inc. (“KORE”) electing to receive share consideration in lieu of $40 million of cash consideration. Additionally, in order to facilitate this, CTAC’s sponsor has agreed to contribute 600,000 Founder Shares to the Electing Holders. A further $25 million is via Fortress Credit Corp. in additional notes as part of their original backstop arrangement.
Moreover, CTAC reported that as of the date of the press release approximately 86.32% of CTAC’s public shareholders had tendered their shares for redemption, which is down from last week’s reported 90.39% redemptions. Perhaps an additional week whittles that number down even further.
CTAC’s public shareholders now have until 5:00 p.m. on Tuesday, September 28, 2021 to withdraw their redemptions and the business combination is expected to close on or about September 30, 2021.
CTAC initially announced its $1.01 billion deal with KORE on March 12. Alpharetta, Georgia-based KORE provides connectivity hardware and service for smart devices and is working to move into the new world of 5G.