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Slam Corp. amends business combination agreement

EditorNatashya Angelica
Published 10/01/2024, 10:04 AM
SLMUF
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Slam Corp., a communications service provider known by its organization name 06 Technology, announced on Monday an amendment to its business combination agreement with Lynk Global Inc. The amendment, filed with the SEC, modifies the terms of their previously announced merger.

The amendment, dated September 28, 2024, revises the process for designating directors on the Topco board immediately after the merger and amends the New Slam Certificate of Incorporation. This change comes after the initial agreement, which was first disclosed on February 4, 2024, and subsequently amended on June 10 and August 26, 2024.

The companies have not disclosed the specific details of the board designation process or the certificate of incorporation amendments. However, these changes are part of the ongoing efforts to finalize the merger, which is expected to expand Slam Corp.'s capabilities in the communications sector.

The merger is subject to approval by Slam Corp.'s shareholders and regulatory authorities. Once completed, the combined entity aims to leverage Lynk Global Inc.'s expertise to enhance its service offerings. The transaction's financial terms were not made public, but the deal is anticipated to close following the satisfaction of customary closing conditions.

Investors and shareholders of Slam Corp. are advised to read the definitive proxy statement/final prospectus and other relevant materials filed with the SEC when available, as they contain important information about the merger.

Slam Corp., traded on the OTCQX Best Market under the ticker symbols SLMUF for its units, SLAMF for its Class A ordinary shares, and SLMWF for its redeemable warrants, is considered an emerging growth company. The company's business address is 55 Hudson (NYSE:HUD) Yards, 47th Floor, Suite C, New York, NY 10001. This news is based on a press release statement and the latest SEC filing by Slam Corp.

In other recent news, Slam Corp. has adjusted its business combination agreement with Lynk Global Inc., pushing the merger deadline from August to December 2024, according to a recent SEC filing. This extension allows for more time to satisfy closing conditions and complete the merger, initially announced in February 2024, indicating a persistent commitment from both parties to finalize the merger.

The filing also revealed an increase in the principal amount of a promissory note issued by Slam Corp. to its sponsor, Slam Sponsor, LLC. The total principal amount has been increased from $10,447,000 to $10,947,000, with approximately $10,439,000 borrowed under the note as of the filing date. This amendment ensures additional funding for Slam Corp. as it moves closer to the completion of the merger.

These recent developments underscore the ongoing commitment and financial arrangements supporting the merger between Slam Corp. and Lynk Global Inc., a significant event in the business operations of both entities.

InvestingPro Insights

As Slam Corp. (SLMUF) navigates its merger with Lynk Global Inc., investors may find additional context from recent financial metrics and expert insights. According to InvestingPro data, Slam Corp. has a market capitalization of $260.11 million USD, indicating its current market valuation. The company's stock is trading near its 52-week high, with the price at 94.75% of its highest point over the past year.

InvestingPro Tips highlight that Slam Corp. is trading at a high earnings multiple, with a P/E ratio of 2200. This elevated valuation suggests investors are pricing in significant future growth, possibly in anticipation of the merger's potential benefits. Moreover, the stock generally trades with low price volatility, which could be appealing to investors seeking stability during the merger process.

It is worth noting that Slam Corp. was profitable over the last twelve months, although it does not currently pay a dividend to shareholders. This profitability, combined with the upcoming merger, may be factors contributing to investor interest.

For those seeking a deeper analysis, InvestingPro offers 5 additional tips for Slam Corp., providing a more comprehensive view of the company's financial health and market position as it approaches this significant corporate event.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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