SPAC Proposes Merger Deadline Extension
The Special Acquisition Company (SPAC) “Thunder Bridge Capital Partners IV, Inc”, which will become a Nasdaq listed partner of the Coincheck Group, proposed on the 16th to extend the deadline for the merger with Coincheck.
Thunder Bridge’s board has proposed an extension of up to 12 months, subject to approval by a shareholder vote, according to filings with the U.S. Securities and Exchange Commission (SEC).
Thunder Bridge Capital said:
We are doing our best to complete the business integration with Coincheck as soon as possible, but we believe that the current deadline of July 2, 2023 is not enough time to do so. .
Accordingly, the Board of Directors of the Company has determined that an extension of the deadline is necessary to complete the business integration with Coincheck.
He added that if the merger cannot be completed by the current deadline, Thunder Bridge Capital will be forced into liquidation, even if shareholders were in favor of the transaction.
What is SPAC
SPAC translates to “Special Purpose Acquisition Company” in Japanese. It refers to companies that do not operate their own business, but that aim to merge or acquire unlisted companies or the businesses of other companies.
Currently, the Monex Group is aiming to list its wholly owned subsidiary Coincheck Group on the Nasdaq.
The listing is planned to be done in the form of a merger with SPAC, and in March 2022, a business integration agreement was signed with Thunder Bridge Capital Partners IV Inc. in the United States.
As of October 2022, the merger was scheduled for July 2023, but an extension was proposed this time.
connection: Coincheck aims to be listed on NASDAQ in the US by the contract deadline of July 23
What is SPAC Listing?
In the SPAC listing, a special purpose acquisition company (SPAC) is first listed, then acquires the target company, and as a result, the acquired company is listed.
While there is an advantage for companies in being able to omit the examination process and be able to go public quickly, there is also a recent trend toward increased scrutiny by regulatory authorities.
In a recent case, Circle, Inc., which provides the stablecoin “USD Coin (USDC)”, temporarily canceled its plan to list SPAC in December 2022.
The US Securities and Exchange Commission’s (SEC) refusal to approve the company’s registration documents is said to be one of the reasons why Circle’s SPAC listing plan fell through.
connection: US circle company criticizes SEC “responsible for derailment of SPAC stock listing plan”