The plan for GRIID merging with the blank-check firm is set for the delay in listing at the NYSE. A recent SEC filing in the previous week by Adit EdTech indicated that the special purpose acquisition company (SPAC) would delay with the cutoff date pushed to February 14. The delay places the $3.3 billion SPAC on the edge of collapse.
Shifting Cutoff Dates
The delay in the SEC filing is the third formal postponement of the merger process in a deal announced in November 2021. The initial cutoff was in May 2022, when the two parties projected to finalize the merger. However, the deadline lapsed with the two companies observing silence.
The merging parties signed a formal agreement to extend the cutoff date to October 1, 2022. The second deadline would later lapse, prompting Adit to rally its shareholders to approve the postponed date.
The approval of the third extension of the merger deal arose following the stockholders’ meeting in December 2022. The delay features GRIID advancing a $148,045.32 loan to the would-be buyer deposited in a trust account. The parties agreed that failure to conclude the deal would leave the shareholders entitled to share the proceeds of the trust account.
Also read:Uncertainty in Adit-GRIID Deal
SPACs are listed shell companies established as vehicles to acquire businesses to list them. The Adit-GRIID deal replicates this as a reverse takeover that will take the Bitcoin miner to the New York Stock Exchange listing.
The $3.3 billion deal seems unlikely to materialize, as Adit disclosed in their new filing, citing the complexity of satisfying the NYSE’s listing requirements. Adit regretted the difficulty of sustaining the average capitalization of $40 million to the publicly-held shares over a consecutive 30-day trading period. Today, Adit confessed to weighing options of voluntarily transferring the shares to another exchange.
SPACs Accomplishing Little Success
SPACs have become popular channels since the onset of 2020 as a faster alternative to the conventional initial public offering (IPO). Multiple deals involving SPACs have recently confronted delays, with others liquidated without securing viable acquisition targets. Such is evident in the Peter Thiel-backed exchange calling off the $9 billion SPAC deal with Far Peak Acquisition Corporation.
A scrutiny of SPACs announced in 2022 revealed 14 deals estimated at $3.7 billion. Assessment of crypto-related SPACs battling delay revealed the $4 billion involving Bitdeer was rescheduled in November for the third time. The USDC issuer Circle terminated the listing plans in December 2022.
GRIID delay could likely call off the deal announced during Bitcoin’s peak in 2021. The context has worsened with declining crypto prices, difficulty mining, and rising energy costs.
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