Ault Disruptive Technologies Announces Offer of Reverse Redemptions in Connection with Vote to Extend Period to Consummate its Initial Business Combination

Rhea-AI Summary

Ault Disruptive Technologies Corporation announces the extension of the merger completion deadline and the option for shareholders to reverse redemption requests. The company received requests to redeem 121,695 shares, with a per-share pro rata trust account portion of $11.72. There are 2,942,180 non-redeemed shares remaining.

Insights

Financial Analyst

The approval of the Extension Amendment Proposal by Ault Disruptive Technologies Corporation indicates a strategic maneuver to provide the company with additional time to identify and complete a business combination. This is a common practice among special purpose acquisition companies (SPACs) to avoid liquidation if they cannot meet the initially proposed deadlines. The extension to December 20, 2024, suggests that the company is still in the process of negotiating a deal or has yet to find a suitable target.

From a financial perspective, the redemption option offered to shareholders is significant. It implies that the company is seeking to maintain its cash trust, which is key for the completion of a future transaction. The mention of 121,695 shares being requested for redemption and the remaining 2,942,180 non-redeemed shares provides an insight into shareholder sentiment, potentially indicating a lack of confidence or a desire for liquidity among a portion of the investors. The pro-rata share of the trust account at $11.72 also suggests a valuation metric that investors may consider when deciding on redemption.

Legal Expert

The legal implications of the Extension Amendment Proposal are centered around corporate governance and shareholder rights. The company's ability to extend the deadline for a business combination is typically pre-determined in the SPAC's charter documents, subject to shareholder approval. The successful approval reflects adherence to due process and the engagement of stockholders in critical decisions.

Moreover, the provision allowing shareholders to reverse their redemption requests is an example of corporate flexibility and responsiveness to investor needs. This action must be managed carefully to ensure compliance with securities regulations and to maintain the integrity of the redemption process. The fact that this option is being provided could indicate an effort by the company to retain its shareholder base in anticipation of a future business combination that requires their support.

Market Research Analyst

The SPAC market has seen fluctuations in investor sentiment and regulatory scrutiny. The decision by Ault Disruptive Technologies Corporation to extend the deadline for completing a business combination is reflective of the challenges SPACs face in a competitive acquisition environment. The market for SPAC mergers can be influenced by various factors including market conditions, availability of suitable targets and investor appetite for risk.

The redemption rate and the subsequent offer to reverse redemptions provide a metric for gauging market confidence in the SPAC's potential to secure a valuable merger. It also offers insights into the company's current standing and the perceived value of its future prospects. The fact that the bulk of non-redeemed shares are held by the company’s sponsor may be indicative of the sponsor's confidence in the SPAC's strategy or a strategic move to maintain control over the company's direction.

LAS VEGAS--(BUSINESS WIRE)-- Ault Disruptive Technologies Corporation, a special purpose acquisition company (the “Company”), today announced that it will allow those holders of shares of the Company's common stock originally sold as part of the units issued in its initial public offering that elected by 5:00 p.m. Eastern Time on February 13, 2024 to redeem their common stock in connection with the special meeting of stockholders held yesterday at 12:00 p.m. Eastern time (the “Special Meeting”), to reverse their redemption requests by sending a DTC DWAC (Deposit/Withdrawal At Custodian) request to the Company's transfer agent, Continental Stock & Transfer Company by 4:15 p.m. Eastern Time, Tuesday, February 20, 2024.

The Company proposed yesterday at the Special Meeting, to amend the Company's amended and restated certificate of incorporation to extend the date by which the Company must complete a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization or similar business combination involving the Company and one or more businesses from February 20, 2024 to December 20, 2024 (the “Extension Amendment Proposal”). The Extension Amendment Proposal was approved.

In connection with the Special Meeting, the Company received requests to redeem 121,695 shares from its public stockholders. The per-share pro rata portion of the trust account on February 15, 2024 was approximately $11.72, excluding any taxes due or paid but not yet reimbursed by the trust. There are 2,942,180 non-redeemed shares remaining at the time of this press release, of which 2,875,000 are held by the Company’s sponsor Ault Disruptive Technologies Company, LLC.

About Ault Disruptive Technologies Corporation

Ault Disruptive Technologies Corporation, a Delaware corporation, is a blank check company incorporated in February 2021 whose business purpose is to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses, which we refer to as our initial business combination.

While we may pursue an initial business combination opportunity in any business, industry, sector or geographical location, we intend to focus on opportunities to acquire companies with innovative and emerging technologies, products or services that have the potential to transform major industries and radically impact society. We intend to acquire a target business or businesses with disruptive technologies that our management team believes can achieve mainstream adoption and create opportunities for long-term appreciation in value.

Forward-Looking Statements

This press release contains statements that constitute "forward-looking statements." Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including those set forth in the Risk Factors section of the Company's annual report on Form 10-K filed with the SEC. Copies are available on the SEC's website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240216978762/en/

Redemption Contact

Continental Stock & Transfer Company SPAC Redemption Team

spacredemptions@continentalstock.com

Ault Disruptive Technologies Corporation

ir@aultdisruptive.com

Source: Ault Disruptive Technologies Corporation

FAQ

What is the purpose of the Extension Amendment Proposal announced by ADRT?

The Extension Amendment Proposal aims to extend the deadline for completing a merger, share exchange, or similar business combination involving ADRT and other businesses from February 20, 2024, to December 20, 2024.

How can shareholders reverse their redemption requests for ADRT?

Shareholders who originally sold their common stock as part of the units in ADRT's initial public offering have until February 20, 2024, to send a DTC DWAC request to the Company's transfer agent, Continental Stock & Transfer Company, to reverse their redemption requests.

What was the total number of shares redeemed by public stockholders at the Special Meeting for ADRT?

At the Special Meeting, ADRT received redemption requests for 121,695 shares from its public stockholders.

How many non-redeemed shares are left at the time of the press release for ADRT?

As per the press release, there are 2,942,180 non-redeemed shares remaining, with 2,875,000 of these held by ADRT's sponsor, Ault Disruptive Technologies Company, LLC.