Welsbach Technology Metals Acquisition Corp. Announces Extension to Business Combination Deadline; Working Capital Loan from Sponsor

Rhea-AI Summary

Welsbach Technology Metals Acquisition Corp. has approved an extension of the time period to consummate a Business Combination until August 30, 2023. The Company has also approved the issuance and sale of a non-interest bearing, unsecured promissory note equal to $125,000 to the Sponsor. The note will not be repaid if the Company is unable to close a business combination. The Sponsor may convert the note into additional private units at a price of $10.00 per unit.

Positive

• Welsbach Technology Metals Acquisition Corp. has extended the time period to consummate a Business Combination until August 30, 2023.
• The issuance and sale of a non-interest bearing, unsecured promissory note to the Sponsor will provide additional funding for the Company.
• The conversion of the promissory note into additional private units at a price of $10.00 per unit could increase shareholder value.

Negative

• No negative takes available.

FOR IMMEDIATE RELEASE

New York, NY, Aug. 01, 2023 (GLOBE NEWSWIRE) -- Welsbach Technology Metals Acquisition Corp. (the “Company”), a blank check company formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses (a “Business Combination”), announced today that it has approved an extension of the time period to consummate a Business Combination, in accordance with Article G of the Company’s amended and restated certificate of incorporation, to and including August 30, 2023.

In connection therewith, the Company has also approved the issuance and sale, to Welsbach Acquisition Holdings LLC (the “Sponsor”), of a non-interest bearing, unsecured promissory note equal to $125,000 (the “Proceeds”) that will not be repaid in the event that the Company is unable to close a business combination unless there are funds available outside the trust account to do so. Such note would either be paid upon consummation of the initial business combination out of the proceeds of the Trust Account released to the Company or, at the Sponsor’s discretion, converted, in full or in part, upon consummation of our business combination into additional private units at a price of $10.00 per unit. The Company confirms that such Proceeds were placed on deposit in the Company’s Trust Account. As such, in accordance with Article G of the Company’s amended and restated certificate of incorporation, the Company’s time period to consummate a Business Combination has been extended to and including August 30, 2023.

In addition, the Sponsor has made an initial working capital loan to the Company, in the amount of $84,000 concurrently with the deposit of the Proceeds. In connection with the extension process, the Company’s independent directors were informed that certain amounts of restricted cash had been used to make payments to certain vendors for services provided to the Company. The proceeds of the working capital loan are sufficient to replenish the Company’s restricted cash level as of the date hereof.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Cautionary Statement Concerning Forward-Looking Statements

This press release contains statements that constitute “forward-looking statements,” including with respect to the potential conversion of the promissory note by the Sponsor into additional private placement units. No assurance can be given that the transactions discussed above will be completed on the terms described, or at all. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company.

Investor Contact:

Christopher Clower, Welsbach Technology Metals Acquisition Corp.
chris@welsbach.sg

FAQ

What is the new deadline for the Business Combination?

The new deadline for the Business Combination is August 30, 2023.

How much is the non-interest bearing, unsecured promissory note?

The non-interest bearing, unsecured promissory note is equal to $125,000.

What happens if the Company is unable to close a business combination?

If the Company is unable to close a business combination, the promissory note will not be repaid.

At what price can the promissory note be converted into additional private units?

The promissory note can be converted into additional private units at a price of $10.00 per unit.