Atlantic Coastal Acquisition Corp. II (NASDAQ:ACAB), a special purpose acquisition company, announced Friday that its shareholders have approved an extension of the deadline to complete the business combination from September 19, 2024 to October 19, 2024. This extension provides the company additional time to complete the merger or similar business combination.
The decision was taken at a special shareholders’ meeting held on Thursday, where a quorum of 538,506 shares was present. The amendment to the company’s articles of association was approved by a majority of 517,796 votes in favor and 20,710 votes against. There were no abstentions or brokers’ non-voting.
As a condition to the extension, Atlantic Coastal Acquisition Management II LLC, the sponsor of Atlantic Coastal, will deposit $0.03 for each common share not redeemed in connection with the special meeting into a trust account for the benefit of the Company’s common stockholders.
On the day of the vote, shareholders owning 126,122 common shares exercised their right to redeem their shares at a price of approximately $11.27 per share. These shares will not participate in any potential future business combination.
The Company has the option to extend the October 19 deadline on a monthly basis through November 19, 2024, without further shareholder vote, if requested by the Sponsor and given five days’ prior notice, unless the Business Combination is completed prior to that time.
The amendment to the charter, formally known as Amendment No. 3 to the Amended and Updated Certificate of Incorporation, was filed with the Office of the Delaware Secretary of State on September 20, 2024, as part of the company’s regulatory requirements.
This move by Atlantic Coastal Acquisition Corp. II reflects the company’s ongoing efforts to identify and integrate with a company that aligns with its strategic objectives. The information in this article is based on the company’s most recent filing with the U.S. Securities and Exchange Commission.
In other recent news, Atlantic Coastal Acquisition Corp. II has been actively involved in significant developments. The company amended its business combination agreement with Abpro Corporation, resulting in the issuance of 600,601 shares of Class A common stock to its sponsor, Atlantic Coastal Management II LLC. This issuance is in lieu of $2 million in unpaid SPAC expenses owed to the sponsor by Atlantic Coastal.
Additionally, Atlantic Coastal has entered into master agreements with Abpro Bio International Inc. and Celltrion, Inc., which are intended to result in a planned business combination with Abpro Corporation. As part of the agreements, Abpro Bio will purchase 622,467 shares of Atlantic Coastal’s Class A common stock, while Celltrion has agreed to purchase 500,000 shares of the same stock.
The company also extended its business integration deadline to September 19, 2024, providing additional time for integration activities. However, Atlantic Coastal has received a notice from the Nasdaq Stock Exchange for non-compliance with the exchange’s ongoing listing standards, specifically its failure to maintain the required minimum of 400 holders of record and/or beneficial owners of its underlying securities. The company now has a 45-day period to submit a plan to regain compliance. These are the latest developments in Atlantic Coastal’s ongoing operations.
InvestingPro Insights
As Atlantic Coastal Acquisition Corp. II (NASDAQ:ACAB) makes its way through the process of completing a business combination, potential and existing investors may be considering the latest financial metrics and market performance. According to InvestingPro, ACABU’s market cap is around $92.45 million, reflecting the company’s current market valuation. Notably, the company’s price is 94.34% off its 52-week high, indicating a relatively stable market performance with a price close to its yearly peak.
However, InvestingPro advises caution; ACABU has weak gross margins and has not been profitable in the past 12 months. Additionally, the company’s short-term liabilities exceed its liquid assets, which could pose liquidity challenges. It’s also worth noting that ACABU doesn’t pay a dividend, which could be important for income-focused investors. For those looking for a deeper analysis, there are additional InvestingPro tips available that can provide additional insights into ACABU’s financial health and future prospects.
These financial insights and advice may be of particular interest to investors considering the implications of the recent extension to complete the business combination. With the next earnings date set for September 27, 2024, stakeholders will be eagerly awaiting any developments that could impact the company’s strategic direction and market position.
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