Sierra Lake Acquisition Corp. Announces Liquidation

Rhea-AI Summary

Sierra Lake Acquisition Corp. (NASDAQ: SIER) announced its intention to dissolve and liquidate due to an inability to complete a business combination as required by its Amended Charter. Effective December 8, 2022, the company will redeem all Class A common stock at approximately $10.12 per share. Shares will cancel post-December 16, 2022, with funds from the trust account being distributed to shareholders. The company’s sponsor waived its redemption rights for Class B common stock. No redemption rights will apply to warrants, which will expire worthless.

Positive

• Shareholders will receive approximately $10.12 per share for Class A common stock.
• Sponsor waived redemption rights, potentially benefiting the company.

Negative

• Inability to complete a business combination reflects failure in strategic plans.
• Warrants will expire worthless, resulting in a total loss for warrant holders.

CHICAGO, Dec. 8, 2022 /PRNewswire/ -- Sierra Lake Acquisition Corp. (NASDAQ: SIER) (the "Company") announced today that due to its 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 December 8, 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Shares"), at a per-share redemption price of approximately $10.12 (without giving effect to any interest that may be withdrawn to pay for taxes and dissolution expenses).

As of the close of business on December 16, 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 has instructed 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 within ten business days after December 16, 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.

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

Sierra Lake Acquisition Corp.
Charles Alutto, CEO
(331) 305-4319 
calutto@sierralakecorp.com
www.sierralakecorp.com

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SOURCE Sierra Lake Acquisition Corp

FAQ

What is the reason for Sierra Lake Acquisition Corp. liquidation?

Sierra Lake Acquisition Corp. is liquidating due to its inability to consummate a business combination as required by its Amended Charter.

When will the liquidation for Sierra Lake Acquisition Corp. occur?

The liquidation will be effective as of December 8, 2022, with shares canceled after December 16, 2022.

What will be the redemption price for shares of SIER?

The redemption price for Class A common stock is approximately $10.12 per share.

What happens to the warrants of Sierra Lake Acquisition Corp.?

The warrants will expire worthless, with no redemption rights or liquidating distributions available.

How will shareholders receive their redemption amounts?

Shareholders will receive their pro rata portion of the proceeds by delivering their Public Shares to the transfer agent.