ZEPHYR COVE, NEVADA - Global Technology Acquisition Corp. I (NASDAQ:GTAC), a special purpose acquisition company, announced today its plan to dissolve and liquidate after failing to complete a business combination within the designated timeframe. The company will redeem all outstanding Class A ordinary shares at an approximate price of $11.50 per share.
The redemption process comes after the company could not achieve an initial business combination as per its Charter requirements. Consequently, the Class A ordinary shares will be cancelled as of the close of business on October 18, 2024, and will no longer represent ownership in the company but rather the right to receive the redemption amount.
Trading of the company's Public Shares, units, and warrants on the Nasdaq Stock Market is expected to cease on or around October 17, 2024, with trading suspension effective before the market opens on the following day. To facilitate the dissolution process, the company has directed the trust account trustee to liquidate any securities held, with the proceeds to be placed in a non-interest bearing account pending distribution.
Shareholders on record will need to deliver their shares to Continental Stock Transfer & Trust Company to receive their share of the trust account proceeds. Those holding shares in street name will not require any action to receive the redemption amount. The company aims to complete the redemption promptly, with a deadline set no later than October 25, 2024.
Class B ordinary shares and the company's former sponsor's Class A ordinary shares, resulting from the conversion of Class B shares, will not be redeemed. The company's warrants will expire without value.
As part of the liquidation process, Global Technology Acquisition Corp. I expects the Nasdaq Stock Market to delist its securities and plans to terminate the registration of its securities under the Securities Exchange Act of 1934.
This announcement is based on a press release statement from the company and contains forward-looking statements, including the expected per-share redemption price and the redemption timetable, which are subject to risks and uncertainties that could cause actual results to differ. These statements do not guarantee future performance and should be considered alongside other company filings and risk disclosures.
InvestingPro Insights
As Global Technology Acquisition Corp. I (NASDAQ:GTAC) prepares for dissolution and liquidation, InvestingPro data provides additional context to the company's financial situation. With a market capitalization of $81.46 million, GTAC's stock has shown relatively low price volatility, as highlighted by one of the InvestingPro Tips. This stability may have been influenced by the company's status as a special purpose acquisition company (SPAC) with a defined timeline and purpose.
The company's financial health indicators align with the challenges faced in completing a business combination. InvestingPro data reveals that GTAC has not been profitable over the last twelve months, with an adjusted operating income of -$4.11 million. This lack of profitability is reflected in the negative P/E ratio of -34.45, suggesting that investors were primarily focused on the potential of a future business combination rather than current earnings.
An InvestingPro Tip notes that GTAC's short-term obligations exceed its liquid assets, which could have contributed to the pressure to complete a deal or face liquidation. The decision to dissolve and return funds to shareholders at approximately $11.50 per share appears to be in line with typical SPAC procedures when a suitable acquisition target is not found within the specified timeframe.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights that could be valuable in understanding the broader implications of SPAC investments and liquidation processes. There are 6 more InvestingPro Tips available for GTAC, which could provide further context to the company's financial position and market performance leading up to this liquidation decision.
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