SilverBox Corp III extends merger deadline, secures promissory note

Published 30/08/2024, 19:20
SilverBox Corp III extends merger deadline, secures promissory note

SilverBox Corp III (NYSE:SBXC), a special purpose acquisition company, has announced key corporate developments, including the extension of its deadline to complete a business combination and the creation of a direct financial obligation.

On Monday, the company entered into a material definitive agreement with its sponsor, SilverBox Sponsor III LLC, which resulted in the issuance of a $600,000 unsecured promissory note. The note will finance monthly extensions for SilverBox Corp III to finalize a business combination, with the possibility of extending the deadline up to six times until March 2, 2025. Each extension requires the sponsor to deposit $94,507.50 into the company's trust account.

Furthermore, the company's Class B common stock has now been granted the option for conversion into Class A common stock, and the limitation that prevented the company from redeeming public shares if it would result in net tangible assets of less than $5 million has been removed. These changes follow the approval of proposals by the company's stockholders at a special meeting on Monday.

In connection with these developments, stockholders holding 10,019,700 shares of Class A common stock chose to redeem their shares for a portion of the funds in the trust account, which will reduce the account by approximately $107 million.

Post-redemption, SilverBox Corp III will have 3,780,300 public shares outstanding. Additionally, on Tuesday, the sponsor converted all its 3,450,000 shares of Class B common stock into Class A common stock.

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