Burgundy Technology Acquisition Corporation Will Redeem Its Public Shares And Will Not Consummate An Initial Business Combination
05 February 2022 - 8:30AM
Business Wire
Burgundy Technology Acquisition Corporation (the “Company”)
(NASDAQ: BTAQ, BTAQU, BTAQW), a technology focused special purpose
acquisition company, today announced that it will redeem all of its
outstanding shares of Class A common stock (the “public shares”),
effective as of the close of business on March 1, 2022, because the
Company will not consummate an initial business combination within
the time period required by its Amended and Restated Memorandum and
Articles of Association (the “Articles”).
As stated in the Company’s S-1 and in the Company’s Articles, if
the Company is unable to complete an initial business combination
within 18 months, the Company will: (i) cease all operations except
for the purpose of winding up, (ii) as promptly as reasonably
possible but not more than ten business days thereafter, redeem the
public shares, at a per-share price, payable in cash, equal to the
aggregate amount then on deposit in the trust account, including
interest earned on the trust account (less up to $100,000 of
interest to pay dissolution expenses and net of taxes payable),
divided by the number of then-outstanding public shares, which
redemption will completely extinguish public shareholders’ rights
as shareholders (including the right to receive further liquidation
distributions, if any), subject to applicable law, and (iii) as
promptly as reasonably possible following such redemption, subject
to the approval of the Company’s remaining shareholders and the
Company’s Board of Directors, liquidate and dissolve, subject in
each case to the Company’s obligations under Cayman Islands law to
provide for claims of creditors and the requirements of other
applicable law.
The per-share redemption price for the public shares will be
approximately $10.05 (the “Redemption Amount”). The balance of the
Trust Account as of December 31, 2021 was approximately
$346,759,664, which includes approximately $34,664 in interest and
dividend income (excess of cash over $346,725,000, the funds
deposited into the Trust Account). In accordance with the terms of
the related trust agreement, the Company expects to retain the
interest and dividend income from the Trust Account to pay
dissolution expenses. Accordingly, there is expected to be a total
of $346,725,000 available for redemption of the 34,500,000 Class A
Shares outstanding, which results in a redemption price of $10.05
per share.
As of the close of business on March 1, 2022, the public shares
will be deemed cancelled and will represent only the right to
receive the Redemption Amount.
The Redemption Amount will be payable to the holders of the
public shares upon presentation of their respective stock or unit
certificates or other delivery of their shares or units to the
Company’s transfer agent, Continental Stock Transfer & Trust
Company. Beneficial owners of public shares held in “street name,”
however, will not need to take any action in order to receive the
Redemption Amount.
There will be no redemption rights or liquidating distributions
with respect to the Company’s warrants, which will expire
worthless.
The Company’s sponsor has waived its redemption rights with
respect to the outstanding founder shares and private placement
shares. After March 1, 2022, the Company shall cease all operations
except for those required to wind up the Company’s business.
The Company expects that NASDAQ will file a Form 25 with the
United States Securities and Exchange Commission (the “Commission”)
to delist its securities. The Company thereafter expects to file a
Form 15 with the Commission to terminate the registration of its
securities under the Securities Exchange Act of 1934, as
amended.
About Burgundy Technology Acquisition Corporation
Burgundy Technology Acquisition Corporation is a blank check
company formed for the purpose of effecting a merger, capital stock
exchange, asset acquisition, stock purchase, reorganization or
similar business combination with one or more businesses.
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. When used in this press release, the words “could,”
“should,” “will,” “may,” “believe,” “anticipate,” “intend,”
“estimate,” “expect,” “project,” the negative of such terms and
other similar expressions are intended to identify forward-looking
statements, although not all forward-looking statements contain
such identifying words. Such forward-looking statements are based
on current information and expectations, forecasts and assumptions,
and involve a number of judgments, risks and uncertainties.
Accordingly, forward-looking statements should not be relied upon
as representing the Company’s views as of any subsequent date, and
the Company does not undertake any obligation to update
forward-looking statements to reflect events or circumstances after
the date they were made, whether as a result of new information,
future events or otherwise, except as may be required under
applicable securities laws. You should not place undue reliance on
these forward-looking statements. As a result of a number of known
and unknown risks and uncertainties, actual results or performance
may be materially different from those expressed or implied by
these forward-looking statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20220204005489/en/
James Mackey Email: Jim.Mackey@BurgundyTechnology.com Phone: +44
20 7129 1152
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