Southport Acquisition Corporation, a company with a focus on real estate and construction, announced on Monday a significant change to its stockholder meeting schedule. The special meeting, which was originally set for today, has been postponed to next Tuesday, October 22, 2024, to give the company more time to communicate with its shareholders and discuss potential redemption reversals.
This development follows a report from Continental Stock Transfer & Trust Company indicating that as of October 11, 2024, shareholders owning 985,170 shares of Southport's Class A common stock have exercised their right to redeem their shares for approximately $11.08 per share in cash. The decision to delay the meeting aims to provide Southport with an opportunity to engage further with its shareholders regarding the proposed Extension Amendment Proposal.
The Extension Amendment Proposal, if approved by stockholders, would allow Southport to extend the deadline for completing an initial business combination from December 14, 2024, to September 30, 2025. This proposal is part of the definitive proxy statement filed with the U.S. Securities and Exchange Commission on October 2, 2024.
Southport's securities, which include Class A common stock, warrants, and units, were delisted from the New York Stock Exchange on April 8, 2024, and have since been trading on the OTC Pink Marketplace under the symbols "PORT," "PORTW," and "PORTU," respectively.
The forthcoming special meeting will be available for live webcast, providing stockholders the opportunity to participate in the discussion surrounding the Extension Amendment Proposal and other pertinent matters.
This announcement contains forward-looking statements that are subject to various risks and uncertainties. These statements are based on current expectations and assumptions and may not accurately predict future events or results.
Southport Acquisition Corporation advises its stockholders to read the Proxy Statement and other relevant documents carefully for a full understanding of the Extension Amendment Proposal and related issues. The information in this article is based on a press release statement.
In other recent news, Southport Acquisition Corp has entered into a significant financial agreement with its sponsor, Southport Acquisition Sponsor LLC. The agreement involves the issuance of a non-convertible unsecured promissory note amounting to up to $1,000,000. This note carries no interest and is set to be repaid by December 14, 2024, or when the company successfully completes a business combination.
An extension to September 30, 2025, is possible under certain conditions. If Southport Acquisition Corp fails to consummate a business combination, the note will not be repaid and any outstanding amounts will be forgiven, except for funds that the company has available outside of its trust account.
This financial maneuver follows the company's delisting from the New York Stock Exchange earlier this year, with its securities now trading on the OTC Pink Marketplace. The agreement and the issuance of the promissory note aim to provide Southport Acquisition Corp with the necessary resources to pursue its business objectives, including potential mergers or acquisitions. These are the recent developments in the company's operations.
InvestingPro Insights
Recent data from InvestingPro sheds light on Southport Acquisition Corporation's financial position as it navigates this critical period. The company's market capitalization stands at $76.04 million, reflecting its current valuation in the market.
InvestingPro Tips highlight some challenges facing the company. For instance, Southport is not profitable over the last twelve months, which aligns with the reported operating income of -$1.63 million for the same period. This financial strain may explain the company's efforts to extend its deadline for completing an initial business combination.
Another InvestingPro Tip notes that Southport's stock price often moves in the opposite direction of the market. This characteristic could be particularly relevant for investors considering the company's future prospects and the potential impact of the Extension Amendment Proposal.
Interestingly, despite these challenges, Southport has seen a significant 109.36% price return over the past six months. This positive momentum contrasts with the company's current trading status near its 52-week low, as indicated by another InvestingPro Tip.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights that could prove valuable in understanding Southport's financial health and market position.
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