Recharge Acquisition Corp. Announces Liquidation

Rhea-AI Summary

Recharge Acquisition Corp. (NASDAQ:RCHG) announced its plan to dissolve and liquidate due to the inability to complete a business combination by the deadline set in its Amended Charter. Effective October 5, 2022, the company will redeem all Class A common stock shares at approximately $10.12 per share. Shareholders will receive their shares' redemption amounts by October 20, 2022. The sponsor has agreed to waive its redemption rights, while warrants will expire worthless. This decision follows a period of inactivity regarding mergers or acquisitions.

Positive

• Shareholders will receive a redemption price of approximately $10.12 per Public Share.
• Sponsor waives redemption rights for Class B and certain Class A common stock.

Negative

• Inability to consummate an initial business combination.
• Liquidation indicates a lack of viable acquisition targets.

NEW YORK, NY / ACCESSWIRE / September 15, 2022 / Recharge Acquisition Corp. (NASDAQ:RCHG) (the "Company") announced today that, due to its anticipated inability to consummate an initial business combination within the time period required by its Amended and Restated Certificate of Incorporation (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 October 5, 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 $10.12.

As of the close of business on October 5, 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 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 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 by October 20, 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

Anthony Kenney
Recharge Acquisition Corp.
(937) 610-4057

SOURCE: Recharge Acquisition Corp.

View source version on accesswire.com:
https://www.accesswire.com/716219/Recharge-Acquisition-Corp-Announces-Liquidation

FAQ

What is the reason for Recharge Acquisition Corp. announcing liquidation?

Recharge Acquisition Corp. announced liquidation due to its inability to complete a business combination by the deadline set in its Amended Charter.

When will the redemption of Class A common stock be completed for RCHG?

The redemption of Class A common stock is expected to be completed by October 20, 2022.

What will happen to the Public Shares after October 5, 2022?

After October 5, 2022, the Public Shares will be deemed cancelled and will only represent the right to receive the redemption amount.

What is the redemption price for the shares of Recharge Acquisition Corp.?

The redemption price for the shares of Recharge Acquisition Corp. is approximately $10.12 per Public Share.

Will shareholders of Recharge Acquisition Corp. receive any payment for their warrants?

No, the warrants will expire worthless and there will be no liquidating distributions with respect to them.