Aetherium Acquisition Corp. Receives Letter of Termination of Business Combination Agreement
Aetherium Acquisition Corp (Nasdaq: GMFI) announced receiving a termination notice from Capital A Berhad regarding their business combination agreement dated February 28, 2024. The termination follows Nasdaq's decision to delist Aetherium's securities for failing to meet listing standards, resulting from Capital A's delays in completing Form F-4 submission. Capital A's decision came without prior notice while simultaneously submitting a Regularization Plan to Bursa Malaysia that excludes this merger. Aetherium's board views this unilateral termination as not acting in good faith, especially after receiving regular reassurances about proceeding with the combination.
Aetherium Acquisition Corp (Nasdaq: GMFI) ha annunciato di aver ricevuto una comunicazione di cessazione da Capital A Berhad riguardante il loro accordo di combinazione commerciale datato 28 febbraio 2024. La cessazione segue la decisione di Nasdaq di sospendere la quotazione dei titoli di Aetherium per non aver rispettato gli standard di quotazione, a causa dei ritardi di Capital A nel completare la presentazione del Modulo F-4. La decisione di Capital A è stata presa senza preavviso, mentre contemporaneamente presentava un Piano di Regolarizzazione alla Bursa Malaysia che esclude questa fusione. Il consiglio di Aetherium considera questa cessazione unilaterale come un atto di mala fede, specialmente dopo aver ricevuto rassicurazioni regolari sulla prosecuzione della combinazione.
Aetherium Acquisition Corp (Nasdaq: GMFI) anunció haber recibido un aviso de terminación de Capital A Berhad respecto a su acuerdo de combinación empresarial fechado el 28 de febrero de 2024. La terminación sigue la decisión de Nasdaq de eliminar los valores de Aetherium por no cumplir con los estándares de cotización, resultado de los retrasos de Capital A en completar la presentación del Formulario F-4. La decisión de Capital A se tomó sin previo aviso, al mismo tiempo que presentaba un Plan de Regularización a Bursa Malasia que excluye esta fusión. La junta de Aetherium ve esta terminación unilateral como una falta de buena fe, especialmente después de recibir constantes garantías sobre la continuación de la combinación.
Aetherium Acquisition Corp (Nasdaq: GMFI)는 Capital A Berhad로부터 2024년 2월 28일 날짜의 사업 결합 계약에 대한 종료 통지를 받았다고 발표했습니다. 이 종료는 Aetherium의 증권이 상장 기준을 충족하지 못해 Nasdaq의 상장 취소 결정에 따른 것이며, 이는 Capital A가 F-4 양식 제출을 완료하는 데 지연이 있었기 때문입니다. Capital A의 결정은 사전 통보 없이 이루어졌으며, 동시에 이 합병을 제외하는 버사 말레이시아에 정규화 계획을 제출했습니다. Aetherium의 이사회는 이러한 일방적 종료가 선의의 행동이 아니라고 판단하고 있으며, 특히 조합 진행에 대한 정기적인 보장을 받았던 이후에 그러합니다.
Aetherium Acquisition Corp (Nasdaq: GMFI) a annoncé avoir reçu un avis de résiliation de Capital A Berhad concernant leur accord de combinaison d'affaires daté du 28 février 2024. La résiliation fait suite à la décision de Nasdaq de retirer les valeurs mobilières d'Aetherium pour ne pas avoir respecté les normes d'inscription, résultant des retards de Capital A dans la soumission du formulaire F-4. La décision de Capital A a été prise sans préavis, tout en soumettant simultanément un Plan de Régularisation à Bursa Malaysia qui exclut cette fusion. Le conseil d'Aetherium considère cette résiliation unilatérale comme un acte de mauvaise foi, surtout après avoir reçu des assurances régulières concernant la poursuite de la combinaison.
Aetherium Acquisition Corp (Nasdaq: GMFI) gab bekannt, eine Kündigungsmitteilung von Capital A Berhad bezüglich ihres Geschäftskombinationsvertrags vom 28. Februar 2024 erhalten zu haben. Die Kündigung folgt auf die Entscheidung von Nasdaq, die Wertpapiere von Aetherium delisten zu lassen, da die Zulassungsstandards nicht erfüllt wurden, was auf die Verzögerungen von Capital A bei der Einreichung des Formulars F-4 zurückzuführen ist. Die Entscheidung von Capital A erfolgte ohne vorherige Ankündigung, während gleichzeitig ein Regularisierungsplan an Bursa Malaysia eingereicht wurde, der diese Fusion ausschließt. Der Vorstand von Aetherium betrachtet diese einseitige Kündigung als unredlich, insbesondere nach den regelmäßigen Zusicherungen zur Fortsetzung der Kombination.
- None.
- Business combination agreement with Capital A Berhad terminated
- Nasdaq delisting of Aetherium's securities
- Failure to meet continued listing standards
- Delays in Form F-4 submission affecting merger completion
- Loss of potential value creation opportunity for shareholders
Insights
The termination of the business combination agreement between Aetherium and Capital A Berhad represents a significant negative development for GMFI shareholders. The collapse of this deal, which was meant to merge Capital A's branding business with Aetherium, comes amid concerning circumstances. The sequence of events raises red flags: Capital A's delays in Form F-4 submission led to Aetherium's non-compliance with Nasdaq listing requirements, yet Capital A is using this non-compliance as grounds for termination.
The situation is particularly troubling given that Capital A has simultaneously submitted a Regularization Plan to Bursa Malaysia that excludes this merger. This parallel action suggests potential strategic repositioning at Capital A's end, leaving Aetherium in a precarious position. With Nasdaq delisting concerns and no clear alternative merger target, GMFI faces significant uncertainty. The company's
The termination dynamics present notable legal complexities. Capital A's unilateral termination citing Section 9.1(h) of the BCA appears procedurally questionable given their own role in creating the conditions leading to Nasdaq's delisting determination. Aetherium's assertion of 'bad faith' has merit, particularly considering Capital A's continued reassurances and their own delays in Form F-4 submission. The company may have grounds for legal recourse under the BCA's bilateral good faith obligations.
The timing and manner of termination, coupled with Capital A's concurrent RegPlan submission to Bursa Malaysia, could support potential claims for breach of contract or breach of implied covenant of good faith and fair dealing. Shareholders should monitor potential legal proceedings as they could impact both timeline and value recovery options.
The termination was made with reference to Section 9.1(h) of the Business Combination Agreement and relating to Aetherium previously receiving a written determination by Nasdaq to delist Aetherium's securities for failure to meet a continued listing standard. Capital A's management understood the basis for Aetherium's continued non-compliance, which resulted from Capital A's delays in timely completing Form F-4 to submit to the SEC. Prior to Nasdaq's delisting decision, Capital A had fully supported Aetherium through its Nasdaq extension requests and had completed its Form F-4 several months ago. Since then, Aetherium has been waiting for Capital A to submit Form F-4 to the SEC to complete the business combination.
Aetherium's Board considers this unilateral termination of the BCA while simultaneously submitting a Regularization Plan ("RegPlan") to Bursa Malaysia, which initially included but now excludes this business combination merger is not acting in good faith as is bilaterally stipulated in the BCA. Prior to receiving the notice of termination, Aetherium regularly received reassurances that Capital A would move forward toward completing this business combination.
Aetherium intends to engage with Capital A's management to determine whether Bursa Malaysia was preventing this transaction, as applying for a listing on Nasdaq is a separate process, and no approvals are required until the SEC process is complete.
"We were disappointed to learn via media reports that Capital A Berhad's board had unilaterally decided to terminate a business combination of its branding business, Capital A International, with Aetherium, a transaction that we believe would have unlocked substantial value for shareholders," said Lim How Teck, an independent director of Aetherium. "This decision, following months of delays by Capital A International in filing the F-4 registration statement that had been prepared, is very concerning. We look forward to learning more and will take all reasonable steps to seek a positive resolution for the shareholders of both companies."
About Aetherium Acquisition Corp.
Aetherium Acquisition Corp. is a blank check company formed to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. Efforts to identify a prospective target business will not be limited to a particular business, industry sector, or geographical region. However, it intends to focus on companies in
Forward-Looking Statement
This press release contains statements that may constitute "forward-looking statements," including with respect to Aetherium's pursuit of an alternative business combination. No assurance can be given that Aetherium will successfully seek and consummate such an alternative business combination. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of Aetherium, including those set forth in the Risk Factors section of Aetherium's public filings with the Securities and Exchange Commission. Copies are available on the SEC's website, www.sec.gov. Aetherium undertakes no obligation to update these statements for revisions or changes after the date of this release except as required by law.
Aetherium Contact
Investor Contact
Crocker Coulson, CEO, AUM Media
+1 (646) 652-7185
crocker.coulson@aummedia.org
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SOURCE Aetherium Acquisition Corp
FAQ
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