Altitude Acquisition Corp. (NASDAQ:ALTU) announced this afternoon that it has entered into a non-redemption agreement alongside certain shareholders who supported the recent proposal to extend the time ALTU has to complete its initial business combination.
As background, Altitude announced last week that it had postponed its special meeting to extend its timeline for an initial business combination. The SPAC has 18 months to complete a business combination with a deadline of June 11, 2022 quickly approaching. The meeting, which was originally scheduled to occur at 12:00 p.m., Eastern time, on June 7, 2022, will now reconvene at 10:30 a.m., Eastern time, on June 10, 2022, in order to solicit additional proxies.
Shareholders holding a total of 1,250,000 shares of Class A common stock, representing $12,500,000 of ALTUU’s trust account, agreed not to redeem their shares in connection with the extension and to vote in favor of the extension as well as the initial business combination, in exchange for a cash payment of $0.033 per share per month for the four-month extension. The cash payment will be made by ALTUU’s Chief Executive Officer, Gary Teplis.
The non-redemption agreements are intended to secure capital in ALTUU’s trust account so that the SPAC can continue to negotiate a potential business combination. Although Altitude has yet to make a deal announcement, it disclosed that it is currently in active discussions for a potential merger with a leading global travel technology business and intends to announce a definitive agreement in the coming weeks.
Altitude initially raised $261 million at IPO on December 8, 2020 and aims to combine with a travel technology business valued at a $1 billion or more connected to mobile solutions, fintech or the sharing economy. Altitude is led by CEO, President and Director Gary Teplis, CFO Farris Griggs and COO Kevin Schubert.