American Acquisition Opportunity Inc. (AMAO) Adds FPA
by Marlena Haddad on 2022-03-25 at 6:30pm

American Acquisition Opportunity Inc. (NASDAQ:AMAO) announced redemption results this afternoon as well as its new forward purchase agreement with certain accredited investors.

On Monday, March 21, AMAO held a special meeting to vote on three proposals after adjourning its meeting held on March 18. Of the 13,232,502 shares of common stock issued and outstanding and entitled to vote at Monday’s meeting, 11,206,316 shares, or 84.7%, were represented in person or by proxy.

The SPAC saw 8,943,317 shares redeemed for a pro rata portion of the funds in the trust account. As a result, 85.126%, or $90,334,512.92 at approximately $10.10 per share, of the trust will be removed to pay such holders.

As for the forward purchase agreement, AMAO also disclosed that certain Investors may each individually elect to sell and transfer to the Company via redemption on the earlier of the closing of the Company’s initial business combination and September 22, 2022 (the “Extended Date”) for an aggregate purchase price of $10.35 per share. They collectively hold 1,123,499 shares subject to the purchase agreements.

If an investors provides a timely notice of wanting to redeem or sell the shares, AMAO will pay the shares purchase price of $10.35 for each eligible share as follows: $0.25 for each share being sold to be delivered from an escrow account and $10.10 for each share being sold to be delivered in the form of a redemption payment from the trustee of the trust account established in conjunction with the closing of the IPO.
American Acquisition Opportunity has agreed to deposit $280,874.75 into the escrow account to satisfy the $0.25 payment for all of the investors. However, in order to be eligible to receive the shares purchase price, the investors must continuously hold the shares until they are sold in open market for higher than $10.35 and are replaced by other shares purchased in the open market.
In exchange for the Company’s commitment to purchase or redeem the Shares at the Shares Purchase Price, each Investor agreed not to request redemption of any of the Shares in conjunction with the Company’s approval of the Extension Proposal and to withdraw any prior redemption requests with respect to the amount of Shares subject the applicable Purchase Agreement.
American Acquisition Opportunity Inc. announced the pricing of its $100 million IPO in March of last year and aims to combine with a business holding valuable land or resources with potential to generate stable royalty income.
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