Atlantic Coastal Acquisition Corp. II (NASDAQ:ACAB), a special purpose acquisition company, announced on Friday that its stockholders have approved an extension of the deadline to complete a business combination from September 19, 2024, to October 19, 2024. This extension allows the company additional time to finalize a merger or similar business combination.
The decision was made during a special meeting of stockholders held on Thursday, where a quorum of 538,506 shares was present. The amendment to the company's charter was passed with 517,796 votes in favor and 20,710 votes against. There were no abstentions or broker non-votes recorded.
As a condition of the extension, Atlantic Coastal's sponsor, Atlantic Coastal Acquisition Management II LLC, will deposit $0.03 for each public share that is not redeemed in connection with the special meeting into the trust account for the benefit of the company's public stockholders.
On the day of the vote, stockholders holding 126,122 public shares exercised their right to redeem their shares at approximately $11.27 per share. These shares will not participate in any potential future business combination.
The company has the option, without another stockholder vote, to extend the October 19 deadline on a monthly basis until November 19, 2024, if requested by the sponsor and upon five days' advance notice, unless a business combination is completed before that time.
The amendment to the charter, formally known as Amendment No. 3 to the Amended and Restated Certificate of Incorporation, was filed with the Office of the Secretary of State of the State of Delaware 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 merge with a business that aligns with its strategic goals. The information for this article is based on the company's recent SEC filing.
In other recent news, Atlantic Coastal Acquisition Corp. II has been actively engaged in significant developments. The company has amended its business combination agreement with Abpro Corporation, resulting in the issuance of 600,601 shares of Series A common stock to its sponsor, Atlantic Coastal Management II LLC. This issuance is in lieu of the $2 million in unpaid SPAC expenses owed to the sponsor by Atlantic Coastal.
Further, Atlantic Coastal has entered into key agreements with Abpro Bio International Inc. and Celltrion, Inc., which are aimed at a planned business combination with Abpro Corporation. As part of the agreements, Abpro Bio will purchase 622,467 shares of Atlantic Coastal's Series A common stock, while Celltrion has agreed to buy 500,000 shares of the same stock.
The company has also extended its business combination deadline to September 19, 2024, providing additional time for merger activities. However, Atlantic Coastal received a notice from the Nasdaq Stock Market for non-compliance with the exchange's continued listing standards, specifically failing to maintain the minimum requirement of 400 holders of record and/or beneficial owners for its primary equity securities. The company now has a 45-day window to submit a plan to regain compliance. These are the recent developments in Atlantic Coastal's ongoing operations.
InvestingPro Insights
As Atlantic Coastal Acquisition Corp. II (NASDAQ:ACAB) navigates its way through the process of completing a business combination, potential and current investors might consider the latest financial metrics and market performance. According to InvestingPro, ACABU has a market capitalization of approximately $92.45 million, reflecting the company's current valuation in the market. Notably, the company's price is at 94.34% of its 52-week high, indicating a relatively stable performance in the market with a price close to its yearly peak.
However, InvestingPro Tips suggest caution; ACABU suffers from weak gross profit margins and has not been profitable over the last twelve months. Additionally, the company's short-term obligations exceed its liquid assets, which could present liquidity challenges. It is also worth noting that ACABU does not pay a dividend, which might be a consideration for income-focused investors. For those seeking a deeper analysis, there are additional InvestingPro Tips available that could provide further insights into ACABU's financial health and future prospects.
These financial insights and tips could be particularly relevant for investors considering the implications of the recent extension for completing a business combination. With the next earnings date set for September 27, 2024, stakeholders will be keenly awaiting any developments that could impact the company's strategic direction and market position.
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