Kairous Acquisition to redeem public shares and liquidate trust account

Published 01/07/2025, 20:36
Kairous Acquisition to redeem public shares and liquidate trust account

Kairous Acquisition Corp. Ltd (OTC:KACLF) announced Monday that it will redeem all outstanding public shares and liquidate its trust account after failing to extend the deadline for completing an initial business combination.

According to a statement released in a U.S. Securities and Exchange Commission filing, the company did not deposit $50,000 into its trust account by May 16, 2025, as required by its governing documents to extend the deadline for a business combination to June 16, 2025. As a result, the company is required to begin winding down operations and redeem all public shares issued in its initial public offering.

Kairous Acquisition stated that it will instruct the trustee of its trust account to liquidate the securities held in the trust. The proceeds will be held at Citibank, N.A. before being distributed to holders of public shares. Record holders will receive their pro rata share by delivering their public shares to Continental Stock Transfer & Trust Company, while beneficial owners holding shares in street name will not need to take any action to receive the redemption amount. The redemption process is expected to be completed within ten business days after June 30, 2025.

The company’s sponsor, officers, and directors have agreed to waive their redemption rights with respect to shares they own that were issued prior to the initial public offering. There will be no redemption rights or liquidating distributions for the company’s warrants or rights, which will expire without value.

Following the redemption of public shares, the board of directors intends to seek an amendment to the company’s charter to remove the obligation to liquidate and dissolve. This change would allow Kairous Acquisition to remain listed on the OTC Markets and pursue alternative business opportunities.

This information is based on a press release statement included in the company’s recent SEC filing.

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