E.Merge Technology Acquisition Corp. Announces Liquidation

Rhea-AI Summary

E.Merge Technology Acquisition Corp. (NASDAQ: ETAC) announced its decision to dissolve and liquidate due to the failure to finalize a business combination by the deadline set in its Amended Charter. This process will be effective from September 4, 2022, with shareholders receiving an approximate redemption price of $10.06 per share. The trust account will be liquidated to facilitate these redemptions, which are anticipated to be completed within ten business days post the liquidation date. The company’s sponsor has waived redemption rights for its Class B shares.

Positive

• Shareholders will receive a redemption price of approximately $10.06 per Public Share.
• The dissolution is a structured process outlined in the company's Amended Charter.

Negative

• The company failed to consummate a business combination, leading to liquidation.
• Warrants will expire worthless, providing no return to warrant holders.

New York, NY, Aug. 22, 2022 (GLOBE NEWSWIRE) -- E.Merge Technology Acquisition Corp. (NASDAQ: ETAC) (the “Company”) announced today that, due to its inability to consummate an initial business combination within the time period required by its Second Amended and Restated Certificate of Incorporation, as amended (the “Amended Charter”), the Company intends to dissolve and liquidate in accordance with the provisions of its Amended Charter, effective as of the close of business on September 4, 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 $10.06.
  
As of the close of business on September 4, 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 September 4, 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 and the Class A common stock contained in the units issued in a private placement concurrent with the initial public offering.

There will be no redemption rights or liquidating distributions with respect to the Company’s warrants, which will expire worthless.
  
Forward-Looking Statements

This press release 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. Such forward-looking statements are based on the beliefs and reasonable assumptions of management, and actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors detailed in the Company’s filings with the Securities and Exchange Commission. The Company undertakes no obligation to update any forward-looking statements after the date of this release, except as required by law.

Contact

Jeff Clarke
Guy Gecht
E.Merge Technology Acquisition Corp.
(619) 736-6855 

FAQ

What will happen to E.Merge Technology Acquisition Corp.'s shares after September 4, 2022?

All outstanding shares of Class A common stock will be cancelled and redeemed at approximately $10.06 per share.

Why is E.Merge Technology Acquisition Corp. dissolving?

The company could not complete an initial business combination within the timeframe required by its Amended Charter.

How will shareholders receive their redemption amount?

Record holders must deliver their Public Shares to the transfer agent, while beneficial owners in street name will automatically receive the amount.

What happens to the company’s warrants during the liquidation?

The company’s warrants will expire worthless, resulting in no return for warrant holders.