Marblegate Acquisition Corp. approves business combination

Published 25/03/2025, 21:58
Marblegate Acquisition Corp. approves business combination

In a recent special meeting, Marblegate Acquisition Corp. (NASDAQ:GATE) stockholders approved a significant business combination and amendments to organizational documents. The company, currently valued at $173.04 million, has seen its stock surge 28.53% in the past week. On Monday, the company held a vote on a merger agreement with Marblegate Asset Management, LLC, and DePalma companies, initially announced on February 14, 2023. According to InvestingPro analysis, the stock appears overvalued at its current price of $12.39.

The merger, which is anticipated to close on March 31, 2025, will see Marblegate Acquisition Corp. become a wholly-owned subsidiary of the newly formed Marblegate Capital Corporation ("New MAC"). As part of the reorganization, DePalma Acquisition I LLC and DePalma Acquisition II LLC will become subsidiaries of New MAC. InvestingPro data reveals the company maintains a FAIR financial health score of 2.24, with subscribers having access to 8 additional key financial metrics and insights.

Stockholders voted overwhelmingly in favor of the business combination, with 9,512,836 votes for and 34,643 against. Additionally, amendments to the company’s charter were approved, including an increase in authorized capital stock and changes to board structure and director elections.

The approved amendments to the charter will change the authorized capital stock from 221 million shares to 260 million shares, transitioning from a blank check company to one with perpetual existence. The vote also supported a single class of directors and the requirement of a 66 2/3% majority for amending certain charter provisions.

In connection with the meeting, stockholders holding 322,274 shares of Class A Common Stock elected to redeem their shares, totaling approximately $3.5 million to be withdrawn from the company’s trust account.

The equity values for DePalma I and DePalma II were determined to be $260.4 million and $369.1 million, respectively, with DePalma I designating $29.6 million in cash to fund working capital needs.

This news is based on a press release statement and documents filed with the SEC. No offerings of securities are being made in this communication, and the proposed business combination will be executed according to the registration statement on Form S-4, including the definitive proxy statement/prospectus filed with the SEC.

In other recent news, Marblegate Acquisition Corp. has issued a promissory note valued at up to $485,000 to Marblegate Special Opportunities Master Fund, L.P. This note is intended to support working capital expenses and carries no interest. Notably, the note allows for the conversion of up to $250,000 into Class A common stock at a conversion price of $10.00 per share. In a related development, Marblegate has secured an extension to maintain its listing on the Nasdaq Stock Market until March 31, 2025. This extension is contingent on completing a business combination with DePalma Acquisition I LLC and DePalma Acquisition II LLC by the deadline. The company has filed a registration statement and preliminary proxy statement with the SEC regarding this proposed business combination. Marblegate’s ability to remain listed on Nasdaq depends on fulfilling these conditions, including obtaining stockholder approval. The company is actively working toward meeting all necessary requirements for the business combination and subsequent Nasdaq listing.

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