Tekkorp Digital Acquisition Corp. Will No Longer Pursue an Extension to Complete An Initial Business Combination

Rhea-AI Summary

Tekkorp Digital Acquisition Corp. (NASDAQ:TEKKU) announced it will not seek to extend the deadline for completing its initial business combination and will adjourn an upcoming shareholder meeting indefinitely. Effective October 26, 2022, the company will begin winding down operations and returning capital to shareholders. Despite evaluating over 50 potential target companies since its IPO in October 2020, Tekkorp concluded that it could not secure an attractive investment opportunity in the current volatile market, which has seen high valuation expectations and a declining IPO environment.

Positive

• Evaluated over 50 potential target companies since the IPO.
• Focused on high-quality opportunities at fair valuations.

Negative

• Unable to secure a compelling investment opportunity.
• Winding down operations and returning capital indicates failed business strategy.

LAS VEGAS--(BUSINESS WIRE)-- Tekkorp Digital Acquisition Corp. (the “Company”), a special purpose acquisition company, today announced that it will no longer pursue an extension of the date by which it must complete an initial business combination. Therefore, at the previously announced Extraordinary General Meeting of the Company’s shareholders initially contemplated to be held for the purpose of seeking an extension to such date, the Company will adjourn the meeting indefinitely without bringing the proposal for such extension to its shareholders. The Company will begin the process of winding down effective October 26, 2022, as set forth in its Amended and Restated Memorandum and Articles of Association, and as promptly as reasonably possible, but not more than ten business days thereafter, return capital to the Company’s respective shareholders.

Since it completed its initial public offering (“IPO”) on October 26, 2020, the Company’s management team has employed a broad set of search criteria for potential target businesses with which to complete an initial business combination and evaluated more than 50 such target companies. Management focused on high quality opportunities at fair valuations. As a result of persistently high valuation expectations combined with an increasingly volatile market and declining IPO market, the Company was unable to secure an opportunity that it believes would offer a compelling return on investment for its shareholders. In light of these circumstances, the Company has determined that it is not feasible to complete an initial business combination by October 26, 2022 and no longer believes that seeking an extension to such date would allow the Company to secure a compelling opportunity for its shareholders.

Forward Looking Statements

This press release contains statements that constitute “forward-looking statements,” including with respect to the redemption of public shares. Such forward-looking statements are based on the beliefs of management, as well as assumptions made by, and information currently available to, the Company’s management. 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 SEC. All subsequent written or oral forward-looking statements attributable to the Company or persons acting on its behalf are qualified in their entirety by this paragraph. 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 Annual Report on Form 10-K filed with the SEC on March 4, 2022 and Quarterly Reports on Form 10-Q filed with the SEC on May 16, 2022 and August 12, 2022, and as those may be further amended and/or supplemented in subsequent filings with the SEC. Copies of such filings 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 report, except as required by law.

Tekkorp Digital Acquisition Corp.
1980 Festival Plaza Drive, Suite #300
Las Vegas, NV 89135

View source version on businesswire.com: https://www.businesswire.com/news/home/20221004006102/en/

Ashley Dabb

Heads of U.S. Operations

Red Knot Communications

+1 862-268-5977

ashley@redknotcomms.com

Source: Tekkorp Digital Acquisition Corp.

FAQ

What is Tekkorp Digital Acquisition Corp.'s recent decision regarding its business combination?

Tekkorp Digital Acquisition Corp. has decided not to seek an extension for completing its initial business combination, leading to the winding down of operations.

What will happen to Tekkorp Digital Acquisition Corp. shares after the winding down?

The company plans to return capital to its shareholders as it winds down operations, starting no later than ten business days after October 26, 2022.

Why did Tekkorp Digital Acquisition Corp. abandon its plans for a business combination?

The company faced persistently high valuation expectations and a volatile market that hindered its ability to secure a compelling investment opportunity.

When did Tekkorp Digital Acquisition Corp. complete its IPO?

Tekkorp Digital Acquisition Corp. completed its initial public offering on October 26, 2020.