Crown PropTech extends merger deadline to May 2025

Published 13/08/2024, 23:42
Crown PropTech extends merger deadline to May 2025

Crown PropTech Acquisitions, a company specializing in hardware wholesale, announced an extension for completing its initial business combination. The decision came after a special resolution during the Extraordinary General Meeting on August 9, 2024, where shareholders approved the extension of the deadline from August 11, 2024, to May 11, 2025.

The New York-based company, which trades under the ticker symbol CPTK, has amended its Third Amended and Restated Memorandum and Articles of Association to reflect this change. This decision allows Crown PropTech additional time to finalize a merger, amalgamation, share exchange, asset acquisition, share purchase, reorganization, or similar business combination.

During the meeting, a significant number of shareholders, holding 1,487,025 Class A ordinary shares, chose to redeem their shares at approximately $11.09 each, leaving about $5.7 million in the trust account and 513,613 Class A ordinary shares outstanding post-redemption.

Moreover, Crown PropTech and CIIG Management III LLC secured agreements from certain shareholders to not redeem an aggregate of 461,148 Class A ordinary shares, further supporting the company's pursuit of a business combination.

The extension proposal was passed with 7,903,764 votes in favor, 21,365 against, and 300 abstentions. The approval of the amended charter took effect immediately under Cayman Islands law, where the company is incorporated.

In other recent news, Crown PropTech Acquisitions has announced plans to extend the deadline for its initial business combination. The New York-based company is seeking shareholder approval to push the deadline from August 11, 2024, to May 11, 2025. This development was disclosed through a Form 8-K filing with the Securities and Exchange Commission.

In relation to this extension, Crown PropTech and CIIG Management III LLC, the co-sponsor, are considering Non-Redemption Agreements with certain investors. This entails assigning up to 500,000 Class B ordinary shares to these investors in return for their pledge not to redeem specific public shares during the Extraordinary General Meeting.

The company has assured that the funds in its trust account will continue to be invested in interest-bearing U.S. government securities or other permitted interest-bearing accounts. Importantly, it will not use trust account funds to cover any potential excise taxes that may arise from share redemptions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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