Today, Trailblazer Merger Corporation I, a special purpose acquisition company (SPAC), announced changes to its annual stockholders' meeting agenda and provided updates on its financial position. The Delaware-based company, which trades on the Nasdaq Stock Market under the symbols TBMC for common stock and TBMCR for rights, has filed a proxy supplement to its earlier proxy statement dated September 6, 2024.
The meeting, initially scheduled for today, approved the adjournment to Thursday, September 26, 2024, at 10:00 A.M. Eastern Time. The adjournment was the only proposal voted upon by the stockholders during the meeting.
Significant revisions in the proxy supplement include a change in the terms for the extension of the deadline to complete a business combination. The company will now deposit $0.035 per public share not redeemed into the Trust Account monthly, rather than the initially proposed $0.015 per share or $100,000. This adjustment aims to extend the deadline for completing a business combination to October 30, 2024, with the possibility of further monthly extensions by the board, up to September 30, 2025.
Furthermore, the company has removed provisions that allowed up to $100,000 of interest from the Trust Account to cover company dissolution expenses. The proxy supplement also clarifies that the company is prohibited from using Trust Account proceeds or interest to pay any excise taxes or similar fees under the Inflation Reduction Act of 2022 in connection with redemptions or stock buybacks.
As of September 4, 2024, the redemption price per share was approximately $11.08, based on the Trust Account balance of about $76.5 million. Prior to making redemption distributions related to the meeting, the company intends to withdraw interest from the Trust Account to cover its income and franchise taxes through September 20, 2024, which will leave an estimated balance of $75.8 million, or approximately $10.98 per share based on 6,900,000 public shares outstanding.
In other recent news, Trailblazer Merger Corporation I has amended its borrowing agreement, increasing its credit line by an additional $200,000 and extending the loan's maturity date to December 31, 2024. This financial maneuver, as disclosed in a recent SEC filing, provides the company with more financial flexibility as it continues to seek business opportunities and potential transactions. In other developments, the company has entered into a definitive merger agreement with Cyabra Strategy Ltd., an AI firm countering disinformation.
The merger, which values Cyabra at an enterprise value of $70 million, has been approved by the boards of directors of both entities. The completion of the deal is contingent upon approval from the stockholders of both companies and other customary closing conditions. Cyabra's proprietary AI technology is used globally by governments and corporations to combat disinformation campaigns on social media.
The merger announcement coincides with rising global concern over disinformation, cited as humanity's most significant short-term risk in the World Economic Forum's 2024 Global Risks Report. The economic fallout from disinformation is projected to be around $78 billion, according to a study by the University of Baltimore and CHEQ.
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