Churchill Capital Corp VII and CorpAcq Mutually Agree to Terminate Business Combination
Churchill Capital Corp VII (CVII) and CorpAcq Holdings have mutually agreed to terminate their previously announced merger agreement due to unfavorable IPO market conditions. As a result, Churchill will not complete an initial business combination by the August 17, 2024 deadline required by its Certificate of Incorporation.
Churchill intends to dissolve and liquidate the proceeds in its trust account. The per-share redemption price for public shares will be approximately $10.84. Churchill's securities ceased trading on Nasdaq on August 16, 2024. The company will redeem 100% of public shares and dissolve, with warrants expiring worthless. Churchill's sponsor has waived redemption rights for Class B common stock.
Churchill Capital Corp VII (CVII) e CorpAcq Holdings hanno concordato di comune accordo di terminare il loro precedente accordo di fusione a causa delle sfavorevoli condizioni del mercato IPO. Di conseguenza, Churchill non completerà una combinazione commerciale iniziale entro la scadenza del 17 agosto 2024 richiesta dal suo Certificato di Incorporazione.
Churchill intende sciogliere e liquidare i proventi nel suo conto fiduciario. Il prezzo di rimborso per azione per le azioni pubbliche sarà di circa $10.84. I titoli di Churchill hanno cessato di essere negoziati su Nasdaq il 16 agosto 2024. La società rimborserà il 100% delle azioni pubbliche e si scioglierà, con i warrant che scadranno senza valore. Lo sponsor di Churchill ha rinunciato ai diritti di rimborso per le azioni ordinarie di Classe B.
Churchill Capital Corp VII (CVII) y CorpAcq Holdings han acordado mutuamente terminar su acuerdo de fusión previamente anunciado debido a las condiciones desfavorables del mercado de OPI. Como resultado, Churchill no completará una combinación de negocios inicial antes de la fecha límite del 17 de agosto de 2024 requerida por su Certificado de Incorporación.
Churchill tiene la intención de disolverse y liquidar los ingresos de su cuenta fiduciaria. El precio de redención por acción para las acciones públicas será de aproximadamente $10.84. Los valores de Churchill dejaron de cotizar en Nasdaq el 16 de agosto de 2024. La compañía reembolsará el 100% de las acciones públicas y se disolverá, con los warrants que expirarán sin valor. El patrocinador de Churchill ha renunciado a los derechos de redención para las acciones ordinarias de Clase B.
Churchill Capital Corp VII (CVII)와 CorpAcq Holdings는 IPO 시장 상황이 좋지 않아 이전에 발표된 합병 계약을 종료하기로 상호 합의했습니다. 따라서 Churchill은 법인 등록 증명서에서 규정한 2024년 8월 17일 기한까지 초기 사업 결합을 완료하지 않을 것입니다.
Churchill은 청산하고 신탁 계좌의 수익을 분배할 계획입니다. 공개 주식에 대한 주당 환매 가격은 약 $10.84가 될 것입니다. Churchill의 증권은 2024년 8월 16일 Nasdaq에서 거래가 중지되었습니다. 회사는 공개 주식의 100%를 환매하고 청산하며 워런트는 무가치하게 만료됩니다. Churchill의 스폰서는 Class B 보통주에 대한 환매 권리를 포기했습니다.
Churchill Capital Corp VII (CVII) et CorpAcq Holdings ont convenu mutuellement de mettre fin à leur accord de fusion précédemment annoncé en raison de conditions de marché IPO défavorables. En conséquence, Churchill ne terminera pas une combinaison d'affaires initiale avant la date limite du 17 août 2024 exigée par son Certificat de Constitution.
Churchill prévoit de se dissoudre et de liquider les bénéfices dans son compte de fiducie. Le prix de rachat par action pour les actions publiques sera d'environ 10,84 USD. Les titres de Churchill ont cessé d'être négociés sur le Nasdaq le 16 août 2024. La société rachètera 100 % des actions publiques et se dissoudra, les bons de souscription expirant sans valeur. Le sponsor de Churchill a renoncé aux droits de rachat pour les actions ordinaires de Classe B.
Churchill Capital Corp VII (CVII) und CorpAcq Holdings haben einvernehmlich beschlossen, ihr zuvor angekündigtes Fusionsabkommen aufgrund ungünstiger IPO-Marktentwicklungen zu beenden. Infolgedessen wird Churchill bis zur Frist am 17. August 2024, die in seinem Gründungszertifikat festgelegt ist, keine erste Geschäftskombination abschließen.
Churchill beabsichtigt, sich aufzulösen und die Erlöse aus seinem Treuhandkonto zu liquidieren. Der Rücknahmepreis pro Aktie für öffentliche Aktien wird etwa 10,84 USD betragen. Die Wertpapiere von Churchill wurden am 16. August 2024 vom Nasdaq-Handel ausgeschlossen. Das Unternehmen wird 100 % der öffentlichen Aktien zurückkaufen und sich auflösen, wobei die Optionsscheine wertlos verfallen. Der Sponsor von Churchill hat auf Rücknahmerechte für Stammaktien der Klasse B verzichtet.
- Per-share redemption price for public shares set at $10.84, providing a return to investors
- Orderly dissolution process initiated to return funds to shareholders
- Termination of merger agreement with CorpAcq due to unfavorable market conditions
- Failure to complete an initial business combination by the required deadline
- Churchill Capital Corp VII (CVII) to cease operations and delist from Nasdaq
- Warrants, including private placement warrants, will expire worthless
Insights
The termination of the merger agreement between Churchill Capital Corp VII and CorpAcq is a significant development for investors. This decision, driven by unfavorable IPO market conditions, highlights the current challenges in the SPAC market. The immediate impact is the redemption of public shares at
For Churchill shareholders, this represents a modest return on their investment, considering the time value of money. However, it's important to note that the warrants will expire worthless, potentially resulting in losses for warrant holders. This outcome underscores the inherent risks in SPAC investments, particularly in volatile market conditions.
This termination reflects broader market sentiment towards SPACs and de-SPAC transactions. The decision to dissolve rather than seek an extension or alternative target suggests a bearish outlook on near-term SPAC opportunities. This trend could lead to:
- Increased scrutiny of SPAC deals
- More conservative valuations in future transactions
- A potential shift back towards traditional IPOs
For the wider market, this event may contribute to a cooling of SPAC enthusiasm, potentially leading to a more selective and cautious approach from both sponsors and investors in the SPAC space.
Churchill Announces Redemption of Public Shares
"While market conditions are not favorable today for the public listing of CorpAcq through our proposed merger, we continue to believe in the strong fundamentals and growth prospects of the Company," said Michael S. Klein, Chairman and CEO of Churchill VII. "We thank the Churchill and CorpAcq teams for their efforts and for providing this unique opportunity to our investors."
"I am very proud of the tremendous business that the CorpAcq team has built, and I am confident in the company's future growth opportunities," said Simon Orange, Chairman and Founder of CorpAcq. "We are appreciative of the partnership with Churchill and their support throughout the process."
Churchill Redemption Information
In view of the termination of the Merger Agreement, Churchill will not complete an initial business combination by August 17, 2024, being the deadline required by its Amended and Restated Certificate of Incorporation (as amended, the "Certificate of Incorporation"). Churchill intends to dissolve and liquidate the proceeds contained in the trust account in accordance with the provisions of its Certificate of Incorporation.
As stated in the Certificate of Incorporation, if Churchill will not complete an initial business combination by August 17, 2024 (or such earlier date as determined by the Board) ("the "Termination Date"), Churchill 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 subject to lawfully available funds therefor, redeem
The per-share redemption price for the public shares will be approximately
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 Churchill'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 Churchill's warrants (including the private placement warrants owned by the Company's sponsor), which will expire worthless.
Churchill's sponsor has waived its redemption rights with respect to the outstanding shares of Class B common stock, par value
Churchill expects that Nasdaq will file a Form 25 with the United States Securities and Exchange Commission (the "SEC") to delist its securities and thereafter expects to file a Form 15 with the SEC to terminate the registration of its securities under the Securities Exchange Act of 1934, as amended.
About Churchill Capital VII
Churchill VII was 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.
About CorpAcq Holdings Limited
CorpAcq is a corporate compounder founded in 2006 with deep commercial experience and a diversified portfolio of 43 companies (as of May 1, 2024) across multiple large industries. CorpAcq has a track record of unlocking business potential and long-term growth for small and medium-sized enterprises through its established M&A playbook and decentralized operational approach. CorpAcq's executive team develops close relationships with their subsidiaries' management to support them with financial and strategic expertise while allowing them to retain independence to continue to operate their businesses successfully. CorpAcq is headquartered in the
Forward-Looking Statements
This press release may include, and oral statements made from time to time by representatives of Churchill or CorpAcq may include, "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. Statements regarding possible business combinations and the financing thereof, and related matters, as well as all other statements other than statements of historical fact included in this press release are forward-looking statements. When used in this press release, words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "would" and similar expressions, as they relate to Churchill, CorpAcq or their respective management teams, identify forward-looking statements. Such forward-looking statements are based on the beliefs of Churchill's or CorpAcq's management, as well as assumptions made by, and information currently available to, Churchill's or CorpAcq's management, as the case may be. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors detailed in Churchill's filings with the Commission. All subsequent written or oral forward-looking statements attributable to Churchill or CorpAcq or persons acting on Churchill's or CorpAcq's behalf are qualified in their entirety by this paragraph. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of Churchill or CorpAcq, including those set forth in the Risk Factors section of Churchill's annual report on Form 10-K for the fiscal year ended December 31, 2023, filed with the Commission on April 4, 2024. Neither Churchill nor CorpAcq undertake an obligation to update these statements for revisions or changes after the date of this release, except as required by law.
Contacts
Churchill Capital Corp VII
Michael Landau
Gladstone Place Partners
(212) 230-5930
CorpAcq
Email: CorpAcqIR@icrinc.com
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SOURCE Churchill Capital Corp VII; CorpAcq
FAQ
Why did Churchill Capital Corp VII (CVII) terminate its merger agreement with CorpAcq?
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