NEW YORK - Ault Disruptive Technologies Corporation (NYSE American: ADRT), a special purpose acquisition company, has announced its decision to redeem all outstanding shares of common stock following its failure to secure an initial business combination by the deadline stipulated in its Certificate of Incorporation.
The company, which has been unable to complete a business combination by December 20, 2024, is set to cease operations, except for the necessary winding-up procedures. In accordance with its Certificate of Incorporation, Ault Disruptive Technologies will redeem 100% of the public shares at an estimated price of $11.18 per share. This redemption price is calculated based on the funds available in the trust account, including accrued interest not used for tax payments, minus up to $50,000 allocated for dissolution expenses.
The last trading day for the company's securities on the New York Stock Exchange American is projected to be October 10, 2024. Starting from the close of business on October 11, 2024, the public shares will be considered canceled and will solely represent the right to receive the Redemption Amount.
Shareholders will receive the Redemption Amount upon the submission of their stock or unit certificates to the company's transfer agent, Continental Stock Transfer & Trust Company. However, beneficial owners with shares held in "street name" will not need to take any action to receive the Redemption Amount.
The company's warrants, including private placement warrants held by its sponsor, will not be eligible for redemption or liquidating distributions and will expire worthless. The sponsor of Ault Disruptive Technologies has waived its redemption rights for the outstanding shares of common stock.
Following the redemption date, the company will discontinue all operations except those necessary for winding up the business. The company anticipates that the NYSE American will file a Form 25 with the United States Securities and Exchange Commission to delist its securities and intends to file a Form 15 to terminate the registration of its securities under the Securities Exchange Act of 1934.
This announcement is based on a press release statement from Ault Disruptive Technologies Corporation.
InvestingPro Insights
Ault Disruptive Technologies Corporation (NYSE American: ADRT) has reached the end of its road in searching for a business combination, with plans to redeem its public shares and wind down operations. A deeper dive into the company's financial health through InvestingPro's real-time data shows a market capitalization of $34.69 million and a negative P/E ratio of -48.58, reflecting its lack of profitability in the last twelve months. The company's struggle is further highlighted by a significant price decline of 29.65% in the last three months.
An InvestingPro Tip notes that ADRT's short-term obligations exceed its liquid assets, which may have contributed to its inability to secure a business combination. Additionally, the company does not pay dividends to shareholders, which could have impacted investor confidence and the attractiveness of the stock.
For those interested in a comprehensive analysis, InvestingPro offers additional insights and tips on ADRT, which could be particularly useful for investors considering the implications of the company's redemption announcement and its future prospects. As of now, there are four more InvestingPro Tips available for ADRT, which can be accessed for detailed investment strategies and company analysis.
Investors should note that the InvestingPro Fair Value for ADRT is currently placed at $11.72, which is slightly above the redemption price of $11.18. This discrepancy could be a point of interest for shareholders as they consider their next steps following the redemption of their shares.
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