G&P Acquisition Corp. Releases Letter to Shareholders

Rhea-AI Summary

G&P Acquisition Corp. (NYSE: GAPA) announced the return of cash held in trust to shareholders, approximately $10.17 per share, due to the inability to complete a business combination within 20 months after its $175 million IPO. The company evaluated over 70 potential transactions but faced challenges including poor SPAC performance, high redemption rates, and new SEC regulations. Despite efforts, no suitable investments met G&P's criteria, leading to this prudent decision for investors.

Positive

• Returning cash of approximately $10.17 per share to shareholders indicates a focus on investor protection.

Negative

• Inability to complete a business combination after 20 months reflects a failure to meet initial investment objectives.
• The deteriorating SPAC market conditions have limited high-quality deal opportunities.
• High redemption rates and new SEC regulations have negatively impacted transaction viability.

NEW YORK, Nov. 23, 2022 /PRNewswire/ -- G&P Acquisition Corp. (NYSE: GAPA) ("G&P" or the "Company"), a publicly-traded special purpose acquisition company, today released the following letter:

Dear G&P Acquisition Corp. Shareholders,

On March 11, 2021 G&P completed a $175 million IPO on the New York Stock Exchange. Our objective was to identify an established operating business in the food and beverage, consumer goods, automotive, and hospitality sectors with strong operation and cash flow. Over the course of the next 20 months, we evaluated over seventy potential transactions, met with over thirty-five potential target companies, actively pursued or made offers to over ten companies and executed letters of intent for a business combination but were unable to consummate a transaction.

Last week, we announced that we were returning all the cash held in trust to shareholders. This totals approximately $10.17 per share, including accrued interest. We believe this is the prudent outcome for our investors.

We have been unsuccessful in completing an initial business combination due to a deteriorating market for SPAC transactions which has been driven by a number of factors including (1) the poor performance of post-business combination SPACs over the last two years has negatively impacted the willingness of potential targets  to enter into a transactions with SPACs, (2) the high redemption rates of SPACs and declining availability of financing options for SPAC transactions with capital requirement that exceed the amount of capital held in trust, and (3) risk and uncertainty created by new SPAC rules proposed by the SEC in 2022.

Our investment objective focused on established operating companies with a history of strong cash flow. These companies can generally wait until market conditions are favorable, which limited the universe of high-quality possible deals for G&P, particularly during the last 12 months. While there were transactions that were potentially actionable for G&P during the past year, none of them met our investment criteria.

While we are disappointed that we did not achieve our initial objective of consummating a high-quality transaction for G&P, we are extremely grateful for your partnership and trust over the last twenty months.

Sincerely,

Brendan T. O'Donnell
Chief Executive Officer

Contacts:

Investors and Media:
Email: investorrelations@gapacq.com
Phone: (212) 415-6506

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SOURCE G&P Acquisitions Corp

FAQ

What did G&P Acquisition Corp. announce on November 23, 2022?

G&P Acquisition Corp. announced the return of cash held in trust to shareholders, totaling approximately $10.17 per share.

Why was G&P Acquisition Corp. unable to complete a business combination?

The company faced challenges such as poor SPAC performance, high redemption rates, and new SEC regulations that limited suitable transaction opportunities.

How much cash is G&P returning to shareholders?

G&P is returning approximately $10.17 per share, including accrued interest.

What was the initial investment objective of G&P Acquisition Corp.?

G&P aimed to identify established operating businesses in sectors such as food and beverage and consumer goods with strong cash flow.

What are the implications of the SEC's new SPAC rules for G&P Acquisition Corp.?

The new SEC regulations created uncertainty and risk, further contributing to G&P's challenges in completing a business combination.