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Fat Projects Acquisition Corporation
SINGAPORE, Nov. 17, 2023 (GLOBE NEWSWIRE) — FAT Projects Acquisition Corp. (NASDAQ: FATPU, FATP, FATPW) (“FATP” Or “company“), a special purpose acquisition company, has announced the termination of its business combination agreement with Avances Holdings Pte. Ltd (“Avanasius“) and the decision to dissolve and liquidate. The dissolution will involve the resignation of its four non-management directors and its chairman and chief operating officer.
Revoking the Agreement with Avanceus
FATP notified Avancius on November 13, 2023, of the cancellation of the Business Combination Agreement dated August 26, 2023. The termination was formalized the next day. The decision was made due to a significant decline in Avencius’s financial condition and results of operations, and it is unlikely that Avances will be able to reverse this trend in the near future. The Business Combination Agreement involved the acquisition of all outstanding ordinary shares of Avanesius by FATP; however, this transaction will not proceed and FATP will now be dissolved and liquidated.
Company Dissolution and Liquidation
FATP was required by its charter to complete its initial business combination by November 15, 2023, unless it obtained two additional 1-month extensions, which would have required a deposit of $24,279.65 by the respective deadlines. Since FATP did not make the required deposit by November 15, 2023, the company will cease all operations and proceed with the dissolution and liquidation as outlined in its charter.
The redemption price per share for the public shares will be approximately $10.96, with the trust account balance as of November 15, 2023, approximately $5.4 million.
The Company’s Warrants will not be eligible for redemption or liquidation distributions and will consequently become worthless.
Following the dissolution, which will be subject to the approval of the remaining shareholders and directors, the company will file a Form 25 with the Nasdaq Stock Market and the U.S. Securities and Exchange Commission to delist its securities. The plan thereafter includes filing Form 15 with the Commission to terminate the registration of its securities under the Securities Exchange Act of 1934, as amended.
Directors and President Resignation
The Company’s non-managing directors and its president have collectively resigned from their positions with immediate effect, and the remaining directors will oversee the company’s further actions.
The press release contains forward-looking statements and emphasizes the importance of not unduly relying on these statements, given the known and unknown risks and uncertainties involved.