Class Acceleration Corp. Amends Charter and Announces Decision to Liquidate

Rhea-AI Summary

On December 20, 2022, stockholders of Class Acceleration Corp. approved amendments to extend the deadline for a business combination from January 20, 2023, to June 20, 2023. Following the meeting, the Board decided to liquidate the Company before December 31, 2022, and has informed the NYSE about the redemption of 100% of its Class A common stock. Trading will cease on December 29, 2022, with expected cash redemption for shareholders. Holders of Redeemable Warrants will not receive any redemption rights. The final redemption amount will be disclosed in a forthcoming SEC filing.

Positive

• Extension of business combination deadline until June 20, 2023 allows more time for potential mergers or acquisitions.

Negative

• Decision to liquidate the Company indicates failure to complete a business combination, negatively impacting shareholder value.
• Redeemable Warrants will expire worthless, leaving holders with no compensation.

WOODSIDE, Calif., Dec. 20, 2022 (GLOBE NEWSWIRE) -- On December 20, 2022, the stockholders of Class Acceleration Corp. (the “Company”) approved (i) an amendment to the Company’s second amended and restated certificate of incorporation (the “Charter”) to extend the date by which the Company would be required to consummate a business combination from January 20, 2023 to June 20, 2023 (the “Extension Amendment”), (ii) an amendment to the Charter to permit the Company’s Board, in its sole discretion, to elect to wind up the Company’s operations on an earlier date (the “Liquidation Amendment” and, together with the Extension Amendment, the “Charter Amendments”), (iii) an amendment to the Company’s investment management trust agreement, dated as of January 14, 2021, by and between the Company and Continental Stock Transfer & Trust Company, to extend the date by which the Company would be required to consummate a business combination from January 20, 2023 to June 20, 2023, or such earlier date as determined by the Board in its sole discretion, and (iv) a proposal to ratify the selection by the audit committee of the Board of Marcum LLP to serve as the Company’s independent registered public accounting firm for the year ending December 31, 2022. The Company filed the Extension Amendment and the Liquidation Amendment with the Secretary of State of the State of Delaware and executed the Trust Agreement on December 20, 2022.

Following the stockholders’ meeting, the Company’s board of directors has determined to liquidate and dissolve the Company as soon as practicable before December 31, 2022. In connection therewith, the Company has (i) notified the New York Stock Exchange (“NYSE”) of its anticipated redemption (the “Redemption”) of 100% of its shares of Class A common stock, par value $0.0001 per share (the “Class A Common Stock”), included as part of the units sold in the IPO, whether such shares were purchased in the IPO or in the secondary market following the IPO (including shares sold pursuant to the underwriters’ overallotment option, collectively, the “Public Shares”) and (ii) requested that NYSE suspend trading of the Company’s shares of Class A Common Stock, warrants to purchase shares of Class A Common Stock (the “Warrants”) and units, each consisting of one Public Share and one-half of one Redeemable Warrant (the units, together with the Class A Common Stock and the Redeemable Warrants, the “Securities”) effective before the open on December 30, 2022. The Securities last day of trading on NYSE on December 29, 2022. The Redemption Date is expected to be on December 30, 2022.

The Public Shares will be redeemed 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 deposits (which interest shall be net of taxes payable and up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding public shares. The Redemption will completely extinguish rights of the holders of public shares (including the right to receive further liquidating distributions, if any). The per share Redemption amount is currently being calculated. When the final amount is determined, the Company will disclose it in a Current Report on Form 8-K to be filed with the Securities and Exchange Commission.

There will be no redemption rights or liquidating distributions with respect to the Redeemable Warrants, which will expire worthless upon the liquidation of the Company.  

If stockholders hold Units, such stockholders do not need to separate the Units into their component parts in order to have their public shares of Class A Common Stock redeemed.

About Class Acceleration Corp.

Class Acceleration Corp. 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 that involve risks and uncertainties. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. These forward-looking statements and factors that may cause such differences include, without limitation, uncertainties relating to the Company’s stockholder approval of the above-referenced proposals, its inability to complete an initial business combination within the required time period and other risks and uncertainties indicated from time to time in filings with the SEC, including the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 under the heading “Risk Factors” and other documents the Company has filed, or to be filed, with the SEC. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

Company Contact:

Caroline Moe Hoch
VP Communications & Strategy, GSV
cmoehoch@gsv.com 

FAQ

What is the deadline extension for Class Acceleration Corp. to complete a business combination?

The deadline for Class Acceleration Corp. to complete a business combination has been extended from January 20, 2023, to June 20, 2023.

When will Class Acceleration Corp. halt trading on NYSE?

Trading of Class Acceleration Corp. shares will cease on December 29, 2022.

What will happen to Class A common stockholders during the liquidation?

Class A common stockholders will receive cash redemption for their shares, with the amount calculated based on the Trust Account balance.

Will holders of Redeemable Warrants receive any compensation during the liquidation?

No, holders of Redeemable Warrants will not receive any compensation as they will expire worthless upon liquidation.