Atlantic Avenue Acquisition Corp Announces Cancellation of Special Meeting of Stockholders and Liquidation

Rhea-AI Summary

Atlantic Avenue Acquisition Corp (NYSE: ASAQ.U, ASAQ, ASAQ WS) has canceled its special stockholders' meeting initially set for October 4, 2022. Due to the failure to complete a business combination within the required timeframe, the Company will dissolve and liquidate effective October 6, 2022, redeeming all outstanding Class A shares at approximately $10.03 each. The trust account's assets will be liquidated for shareholder disbursement, while Class B shares' redemption rights are waived. The Company will also delist its securities from the NYSE.

Positive

• Shareholders will receive a redemption price of approximately $10.03 per share.

Negative

• Inability to complete a business combination within the designated time frame.
• Company will dissolve and liquidate, impacting future operations.
• Warrants will expire worthless, indicating no shareholder value.

STAMFORD, Conn., Oct. 3, 2022 /PRNewswire/ -- October 3, 2022 - Atlantic Avenue Acquisition Corp (the "Company") (NYSE: ASAQ.U, ASAQ, ASAQ WS), announced today that it has canceled its special meeting of stockholders that was previously scheduled for 10:00 AM Eastern time on October 4, 2022, and that, due to its inability to complete an initial business combination within the time period required by its Amended and Restated Certificate of Incorporation, the Company intends to dissolve and liquidate, effective as of the close of business on October 6, 2022, and will redeem all of the outstanding shares of Class A common stock that were included in the units issued in its initial public offering (the "Public Shares"), at a per-share redemption price of approximately $10.03.

As of the close of business on October 6, 2022, the Public Shares will be deemed cancelled and will represent only the right to receive the redemption amount.

In order to provide for the disbursement of funds from the trust account, the Company has instructed the trustee of the trust account to take all necessary actions to liquidate the securities held in the trust account. The proceeds of the trust account will be held in a non-interest bearing account while awaiting disbursement to the holders of the Public Shares. Record holders will receive their pro rata portion of the proceeds of the trust account by delivering their Public Shares to Continental Stock Transfer & Trust Company, the Company's transfer agent. Beneficial owners of Public Shares held in "street name," however, will not need to take any action in order to receive the redemption amount. The redemption of the Public Shares is expected to be completed within ten business days after October 6, 2022.

The Company's sponsor has agreed to waive its redemption rights with respect to its outstanding Class B common stock issued prior to the Company's initial public offering. There will be no redemption rights or liquidating distributions with respect to the Company's warrants, which will expire worthless.

The Company expects that the New York Stock Exchange will file a Form 25 with the United States Securities and Exchange Commission (the "Commission") to delist the Company's 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.

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 registration statement and prospectus for the offering 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.

Contact:
Barry Best, CFO 
Atlantic Avenue Acquisition Corp 
info@asaqspac.com 
203-989-9709

 

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SOURCE Atlantic Avenue Acquisition Corp

FAQ

What led to Atlantic Avenue Acquisition Corp's liquidation?

The company could not complete an initial business combination within the required time frame.

When will the liquidation of Atlantic Avenue Acquisition Corp take place?

Liquidation will be effective as of the close of business on October 6, 2022.

What will happen to the shares of Atlantic Avenue Acquisition Corp?

Class A shares will be redeemed at approximately $10.03 per share.

What is the redemption process for shareholders?

Shareholders must deliver their Public Shares to receive their pro rata portion from the trust account.

What are the implications of the company's delisting?

The company will file a Form 25 to delist its securities from the NYSE.