Southport Acquisition Corporation (OTC:PORTU), a blank check company, announced today that its stockholders have approved amendments to its charter, including an extension of the deadline to complete a business combination and the elimination of a redemption limitation.
The special meeting of stockholders, held on Wednesday, resulted in the approval of both the Extension Amendment Proposal and the Redemption Limitation Amendment Proposal. Following the stockholder vote, the company filed an amendment to its Amended and Restated Certificate of Incorporation with the Secretary of State of Delaware.
The Extension Amendment Proposal extends the date by which Southport Acquisition must consummate an initial business combination from December 14, 2024, to September 30, 2025. The Redemption Limitation Amendment Proposal removes the clause that restricted the company from redeeming its outstanding Class A Common Stock if such redemption would result in net tangible assets of less than $5,000,001.
During the meeting, approximately 83.2% of the voting power of the company's shares of common stock as of the record date were present or represented by proxy, satisfying the quorum requirement.
The approved Redemption Limitation Amendment now allows the company to redeem public shares without regard to whether the redemption would exceed the previously stated limitation. In accordance with the approved Extension Amendment Proposal, stockholders holding 1,125,126 public shares exercised their right to redeem their shares for cash at a redemption price of approximately $11.08 per share, totaling about $12 million.
In other recent news, Southport Acquisition Corp has announced several significant developments. The company has cancelled a special meeting of stockholders, initially planned to discuss matters outlined in an October 2, 2024 proxy statement. Southport Acquisition Corp now intends to amend the proxy statement to include a proposal to modify its Amended and Restated Certificate of Incorporation. This amendment would remove restrictions on redeeming outstanding shares of Class A common stock that could result in net tangible assets falling below $5,000,001.
In addition, Southport Acquisition Corp has entered into a 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, repayable by December 14, 2024, or upon successful completion of a business combination.
A special stockholder meeting to discuss potential redemption reversals and an Extension Amendment Proposal has been postponed. This proposal could extend the deadline for completing an initial business combination from December 14, 2024, to September 30, 2025. These recent developments highlight the ongoing changes within Southport Acquisition Corp.
InvestingPro Insights
As Southport Acquisition Corporation (OTC:PORTU) navigates its extended timeline for completing a business combination, investors should be aware of several key financial indicators. According to InvestingPro data, the company's market capitalization stands at $76.11 million, reflecting its current valuation as a blank check company.
InvestingPro Tips highlight that PORTU is trading near its 52-week low, which aligns with the recent stockholder-approved amendments and share redemptions. Additionally, the company is not profitable over the last twelve months, with an adjusted operating income of -$1.63 million for the same period. This financial position underscores the importance of the company's efforts to secure a suitable business combination target.
It's worth noting that PORTU does not pay a dividend to shareholders, which is typical for special purpose acquisition companies (SPACs) focused on growth through mergers or acquisitions. Investors interested in a more comprehensive analysis can find 7 additional InvestingPro Tips for PORTU, offering deeper insights into the company's financial health and market position.
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