Crown PropTech Acquisitions, a company specializing in hardware wholesaling, has announced its intention to extend the timeframe for completing its initial business combination. The announcement was made through a Form 8-K filing with the Securities and Exchange Commission on Tuesday.
The company, headquartered in New York, has scheduled an Extraordinary General Meeting for Monday at its offices to seek shareholder approval for extending the deadline from August 11, 2024, to May 11, 2025. Shareholders must exercise their redemption rights by Thursday, two days before the meeting.
About the proposed extension, Crown PropTech and CIIG Management III LLC, the company's co-sponsor, plan to enter into Non-Redemption Agreements with certain investors. These agreements involve assigning up to 500,000 Class B ordinary shares to the investors in exchange for their commitment not to redeem specific public shares during the Extraordinary General Meeting.
The company has confirmed that the funds in its trust account will continue to be invested in interest-bearing U.S. government securities, money market funds that meet specified conditions, or other permitted interest-bearing accounts until the earlier of the completion of the business combination, the liquidation of the trust account, or 36 months from the initial public offering.
The company also stated that it would not use trust account funds to pay any potential excise taxes that may arise from share redemptions, including in the event of liquidation if a business combination is not completed before the termination date.
The Non-Redemption Agreements, if executed, are not expected to influence the approval of the Extension Proposal by shareholders but are anticipated to increase the amount of funds remaining in the trust account after the meeting. The company may enter into additional similar agreements related to the meeting.
The information provided in this article is based on the company's SEC filing.
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