ADDENDUM TO DANNY MEYER SPAC article earlier
In our haste to very concisely summarize a 200 page proxy document, we were a little too concise. There are no doubt many other aspects we did not provide, but we have added two important points. The points are:
(1) HUGS has twenty four months to complete a Business Combination, though that can be extended by a shareholder vote.
(2) The public shareholders of HUGS have the right to redeem, for approximately $10/share, prior to the Business Combination if they disapprove of the outlook from that point forward. This is typical of SPAC offerings and a major source of comfort to the SPAC buyers, along with the warrants (costing nothing) they can keep if they bought the Units at the IPO. If time runs out to find a Business Combination or if the majority of all the shares (37.5% of those publicly held) disapprove of the deal, the SPAC would be liquidated and the full $2,024,000 provided by the Sponsor would be lost.
Forgive us, if you can 🙂