Greencity Acquisition Corporation Announces to Extend Deadline to Consummate Business Combination

Rhea-AI Summary

Greencity Acquisition Corporation (NASDAQ: GRCY) has announced a deposit of $133,334 into its trust account to extend the deadline for completing a business combination by one month to August 28, 2021. The sponsor, Cynthia Management Corporation, plans to extend this period up to April 28, 2022, by making additional deposits totaling $1,066,666. Greencity is a blank check company focusing on acquiring businesses related to the Asian market.

Positive

• Extension of business combination deadline increases chances for strategic acquisition.
• Financial support from the sponsor indicates confidence in completing a deal.

Negative

• The need for extensions may signal challenges in finding a suitable acquisition target.

SHANGHAI, July 26, 2021 /PRNewswire/ -- Greencity Acquisition Corporation (the "Company" or "Greencity") (NASDAQ: GRCY) (the "Company") today announced that the Company's sponsor, Cynthia Management Corporation (the "Sponsor"), has deposited into the Company's trust account (the "Trust Account") an aggregate of $133,334, representing $0.033 per public share of the Company, in order to extend the period of time the Company has to consummate a business combination by one month to August 28, 2021.

The Sponsor plans to extend such period of time additional eight times to complete its initial business combination as necessary, each by an additional one months, up to April 28, 2022, by depositing an aggregate of an additional $1,066,666 into the Trust Account, representing an additional $0.267 per public share, in connection with such additional extensions. 

About Greencity Acquisition Corporation

The Company is a blank check company incorporated as a Cayman Islands exempted company and formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. While the Company may pursue an acquisition opportunity in any industry or sector, the Company intends to focus on businesses that have a connection to the Asian market.

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 registration statement and prospectus for the offering filed with the Securities and Exchange Commission ("SEC"). Copies are available on the SEC's website, 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.

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SOURCE GREENCITY ACQUISITION CORPORATION

FAQ

What is GRCY's recent announcement regarding its business combination deadline?

Greencity Acquisition Corporation announced an extension of its business combination deadline to August 28, 2021, with plans for further extensions until April 28, 2022.

How much money is Greencity Acquisition Corporation depositing for the extension?

The company has deposited $133,334 for the initial one-month extension and plans to deposit an additional $1,066,666 for further extensions.

What is the purpose of Greencity Acquisition Corporation?

Greencity is a blank check company formed to pursue mergers or acquisitions, primarily focusing on businesses connected to the Asian market.

What does the extension of the deadline imply for Greencity's investors?

The extension suggests that Greencity is actively seeking viable business combinations, which could be a positive sign for investors.