FTAC Parnassus Acquisition Corp. Announces it Will Redeem its Public Shares

Rhea-AI Summary

FTAC Parnassus Acquisition Corp. (NASDAQ:FTPA) announced plans to dissolve and liquidate after failing to complete a business combination by the deadline. Effective March 16, 2023, the company will redeem all outstanding Class A common stock shares at approximately $10.13 each. Following this, Public Shares will be canceled and considered only as a claim for redemption. The company's trustees will liquidate securities from a trust account for disbursement, with estimated payouts minus certain expenses. Additionally, the Nasdaq will delist the company's securities and terminate registration under the Securities Exchange Act of 1934.

Positive

• Redemption price set at approximately $10.13 per share for Public Shares.

Negative

• Failure to complete a business combination within the allotted time frame.
• Intended liquidation could indicate a lack of viable business prospects.
• Warrants will expire worthless with no redemption rights.

PHILADELPHIA, PA, Feb. 17, 2023 (GLOBE NEWSWIRE) -- FTAC Parnassus Acquisition Corp. (NASDAQ:FTPA) (the “Company”), a blank-check company formed for the purpose of acquiring or merging with one or more businesses, today announced that because the Company will not consummate an initial business combination within the time period required by its Amended and Restated Certificate of Incorporation (the “Charter”), the Company intends to dissolve and liquidate in accordance with the provisions of the Charter, effective as of the close of business on March 16, 2023, 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 $10.13.

As of the close of business on March 16, 2023, 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 will instruct 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, less $100,000 of interest to pay dissolution expenses and net of taxes payable, 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 March 16, 2023.

The Company’s sponsors have agreed to waive their redemption rights with respect to their shares of common stock of the Company. 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 Nasdaq Stock Market LLC 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. The Company anticipates that the Public Shares, as well as the Company’s publicly traded units and warrants, will cease trading as of the close of business on March 15, 2023.

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 and subsequent reports filed with the SEC, as amended from time to time. Copies of these documents are available on the SEC’s website, at 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 Information:

Mehar Jagota
mehar@cohencircle.com
(484)-995-3030

FAQ

What is the planned redemption amount for FTPAU shareholders?

Shareholders will receive approximately $10.13 per share for their Public Shares.

When will FTAC Parnassus Acquisition Corp. cease trading?

The company's shares will cease trading as of March 15, 2023.

What will happen to the company's warrants after liquidation?

The company's warrants will expire worthless with no redemption rights.

Why is FTAC Parnassus Acquisition Corp. liquidating?

The company failed to consummate a business combination within the required timeframe.

How will shareholders redeem their Public Shares?

Shareholders must deliver their Public Shares to the transfer agent, while beneficial owners in street name will not need to take action.