SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
Proxy Statement Pursuant to Section 14(a) of the Securities
Exchange Act of 1934 (Amendment No. )
6 St Johns Lane, Floor 5
New York, NY 10013
To Be Held September 8, 2023
| September 1, 2023 | | | By Order of the Board of Directors | |
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/s/ Shahraab Ahmad
Shahraab Ahmad
Chairman and Chief Executive Officer |
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6 St Johns Lane, Floor 5
New York, NY 10013
TO BE HELD SEPTEMBER 8, 2023
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/s/ Shahraab Ahmad
Shahraab Ahmad
Chairman and Chief Executive Officer |
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Why am I receiving this Proxy Statement?
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| | We are a blank check company formed in Delaware on December 7, 2020, for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. On March 8, 2021, we consummated our IPO from which we derived gross proceeds of $345,000,000 in the aggregate and completed the private sales of Private Placement Warrants from which we derived gross proceeds of $9,100,000. The amount in the Trust Account was initially $10.00 per public share. Like most blank check companies, our charter provides for the return of our IPO proceeds held in trust to the holders of shares of Class A common stock sold in our IPO if there is no qualifying business combination(s) consummated on or before September 8, 2023. Our Board believes that it is in the best interests of the stockholders to continue our existence until the Extended Date (or Additional Charter Extension Date, if applicable) in order to allow us more time to complete a business combination. | |
| | | | While we are using our best efforts to complete a business combination as soon as practicable, the Board believes that there will not be sufficient time before the Original Termination Date to complete an initial business combination. The purpose of the Charter Amendment Proposal and, if necessary, the Adjournment Proposal, is therefore to provide the Company with sufficient time to complete a business combination. | |
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What is being voted on?
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| | You are being asked to vote on: | |
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a proposal to extend the date by which the Company must consummate a business combination from September 8, 2023 to March 8, 2024 or such earlier date as determined by the Board, and to allow the Company, without another stockholder vote, to elect to extend the Termination Date to consummate a business combination on a monthly basis up to six times by an additional one month each time after the Extended Date, by resolution of the Board if requested by our Sponsor and upon five days’ advance notice prior to the applicable Termination Date, until September 8, 2024 or a total of up to twelve months after the Original Termination Date; and
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a proposal to approve the adjournment of the Special Meeting to a later date or dates, if necessary, to permit further solicitation and vote of proxies in the event that there are insufficient votes for, or otherwise in connection with, the approval of the Charter Amendment Proposal.
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| | | | If the Charter Amendment Proposal is approved and the Charter Amendment becomes effective, in the event that ACAH has not consummated a business combination by the Extended Date, without approval of the holders of ACAH’s public shares (as defined below), ACAH may, by resolution of the Board, if requested by the Sponsor, and upon five days’ advance notice prior to the applicable Termination Date, extend the Termination Date up to six times, each by one additional month (for a total of up to twelve additional months to | |
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complete a business combination), provided that the Sponsor (or one or more of its affiliates, members or third-party designees) (the “Lender”) will deposit into the Trust Account: for each such monthly extension, $0.03 for each public share that is not redeemed in connection with the Special Meeting for an aggregate deposit of $0.18 for each public share that is not redeemed in connection with the Special Meeting (if all six additional monthly extensions are exercised), in exchange for a non-interest bearing, unsecured promissory note issued by ACAH to the Lender. If ACAH completes a business combination, it will, at the option of the Lender, repay the amounts loaned under the promissory note or convert a portion or all of the amounts loaned under such promissory note into Class A common stock at a price equal to $10.00 per share. If ACAH does not complete a business combination by the applicable Termination Date, such promissory note will be repaid only from funds held outside of the Trust Account or will be forfeited, eliminated or otherwise forgiven.
ACAH is listed on The Nasdaq Capital Market. Nasdaq IM-5101-2 requires that a special purpose acquisition company complete one or more business combinations within 36 months of the effectiveness of its IPO registration statement, which, in the case of ACAH, would be March 3, 2024 (the “Nasdaq Deadline”). The Extension to the Extension Date, as well as any Additional Charter Extension Date contemplated by the Charter Amendment Proposal, would extend ACAH’s Termination Date beyond the Nasdaq Deadline. As a result, all Extension(s) contemplated by the Charter Amendment Proposal do not comply with Nasdaq rules. Thus, trading in ACAH’s securities may be suspended and ACAH may be subject to delisting by Nasdaq if the Charter Amendment Proposal is approved and the Company does not complete one or more business combinations by the Nasdaq Deadline.
The Charter Amendment Proposal is required for the implementation of our Board’s plan to extend the date that we have to complete our initial business combination. The purpose of the Charter Amendment is to allow the Company more time to complete an initial business combination. Approval of the Charter Amendment Proposal is a condition to the implementation of the Extension to the Extended Date and the consummation of any redemptions in connection therewith.
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| | | | If the Charter Amendment Proposal is approved, we will, pursuant to the Trust Agreement, remove the Withdrawal Amount from the Trust Account, deliver to the holders of redeemed public shares their portion of the Withdrawal Amount and retain the remainder of the funds in the Trust Account for our use in connection with consummating a business combination on or before the Extended Date (or Additional Charter Extension Date, if applicable). | |
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However, we will not proceed with the Extension to the Extended Date or any redemptions in connection therewith if redemptions of our public shares cause us to have less than $5,000,001 of net tangible assets following approval of the Charter Amendment Proposal.
If the Charter Amendment Proposal is approved and the Extension to the Extended Date is implemented, the removal of the Withdrawal Amount from the Trust Account in connection with the Election will
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reduce the amount held in the Trust Account following the Election. We cannot predict the amount that will remain in the Trust Account if the Charter Amendment Proposal is approved and the amount remaining in the Trust Account may be only a small fraction of the approximately $37.2 million that was in the Trust Account. In such event, we may need to obtain additional funds to complete an initial business combination, and there can be no assurance that such funds will be available on terms acceptable to the parties or at all.
We reserve the right at any time to cancel the Special Meeting and not to submit to our stockholders the Charter Amendment Proposal and implement the Charter Amendment. In the event the Special Meeting is cancelled, we may dissolve and liquidate in accordance with the charter.
If the Charter Amendment Proposal is not approved, we will not redeem any shares in respect of which public stockholders have made an Election, and will, as promptly as reasonably practicable, and in any event within 5 business days, return any shares tendered to the Company’s transfer agent prior to the Special Meeting. Further, if the Charter Amendment is not approved and we do not consummate a business combination by September 8, 2023, in accordance with our charter, we will (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem 100% of the public shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest earned and not previously released to the Company to pay its taxes, if any (less up to $100,000 of interest to pay dissolution expenses), divided by the number of then issued and outstanding public shares, which redemption will completely extinguish the rights of the Public Stockholders (as defined in the charter) as stockholders (including the right to receive further liquidating distributions, if any), and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the Company’s remaining stockholders and the Company’s board of directors, dissolve and liquidate, subject in each case to the Company’s obligations under the Delaware General Corporation Law, which we refer to as the “DGCL,” to provide for claims of creditors and other requirements of applicable law.
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| | | | There will be no distribution from the Trust Account with respect to our warrants, which will expire worthless in the event of our winding up. In the event of a liquidation, our Sponsor, directors and officers will not receive any monies held in the Trust Account as a result of their ownership of the Founder Shares, the Private Placement Warrants or any Class A common stock issued in connection with the conversion of the Founder Shares. | |
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Why is the Company proposing the Charter Amendment Proposal and the Adjournment Proposal?
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| | Our charter provides that we have until September 8, 2023 to complete our initial business combination. Our Board has determined that it is in the best interests of our stockholders to approve the Charter Amendment Proposal and, if necessary, the Adjournment Proposal, to allow for additional time to consummate a business combination. While we are using our best efforts to complete a business combination as soon as practicable, the Board believes that there will not be sufficient time before the Original Termination Date to complete a business combination. Accordingly, the Board believes that in order to | |
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be able to consummate a business combination, we will need to obtain an Extension. In addition to the Extension(s), the other proposed changes to the charter will give the Company further flexibility to retain stockholders and meet NASDAQ continued listing requirements following any stockholder redemptions. Without an Extension, the Board believes that there is significant risk that we might not, despite our best efforts, be able to complete a business combination on or before September 8, 2023. If that were to occur, we would be precluded from completing a business combination and would be forced to liquidate even if our stockholders are otherwise in favor of consummating a business combination.
If the Extension to the Extended Date is approved and implemented, we intend to complete a business combination as soon as possible and, in any event, on or before the applicable Termination Date. The Company believes that given its expenditure of time, effort and money on searching for potential business combination opportunities, circumstances warrant providing public stockholders an opportunity to consider a business combination. Accordingly, the Board is proposing the Charter Amendment Proposal to amend our charter in the form set forth in Annex A hereto to extend the date by which the Company must (i) consummate a business combination (ii) cease its operations if it fails to complete such business combination, and (iii) redeem or repurchase 100% of the Company’s Class A common stock included as part of the units sold in the Company’s IPO to March 8, 2024 and to allow the Company, without another stockholder vote, to elect to extend the Termination Date to consummate a business combination on a monthly basis up to six times by an additional one month each time after the Extended Date, by resolution of the Board, if requested by our Sponsor, and upon five days’ advance notice prior to the applicable Termination Date, until September 8, 2024 or a total of up to twelve months after the Original Termination Date.
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| | | | If the Charter Amendment Proposal is approved and the Charter Amendment becomes effective, in the event that ACAH has not consummated a business combination by the Extended Date, without approval of the holders of ACAH’s public shares (as defined below), ACAH may, by resolution of the Board, if requested by the Sponsor, and upon five days’ advance notice prior to the applicable Termination Date, extend the Termination Date up to six times, each by one additional month (for a total of up to twelve additional months to complete a business combination), provided that the Lender will deposit into the Trust Account: for each such monthly extension, $0.03 for each public share that is not redeemed in connection with the Special Meeting for an aggregate deposit of up to $0.18 for each public share that is not redeemed in connection with the Special Meeting (if all six additional monthly extensions are exercised), in exchange for a non-interest bearing, unsecured promissory note issued by ACAH to the Lender. If ACAH completes a business combination, it will, at the option of the Lender, repay the amounts loaned under the promissory note or convert a portion or all of the amounts loaned under such promissory note into Class A common stock at a price equal to $10.00 per share. If ACAH does not complete a business combination by the applicable Termination Date, such promissory note will be repaid only from funds held outside of the Trust Account or will be forfeited, | |
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eliminated or otherwise forgiven.
ACAH is listed on The Nasdaq Capital Market. Nasdaq IM-5101-2 requires that a special purpose acquisition company complete one or more business combinations within 36 months of the effectiveness of its IPO registration statement, which, in the case of ACAH, would be March 3, 2024 (the “Nasdaq Deadline”). The Extension to the Extension Date, as well as any Additional Charter Extension Date contemplated by the Charter Amendment Proposal, would extend ACAH’s Termination Date beyond the Nasdaq Deadline. As a result, all Extension(s) contemplated by the Charter Amendment Proposal do not comply with Nasdaq rules. Thus, trading in ACAH’s securities may be suspended and ACAH may be subject to delisting by Nasdaq if the Charter Amendment Proposal is approved and the Company does not complete one or more business combinations by the Nasdaq Deadline.
You are not being asked to vote on a business combination at this time. If the Extension to the Extended Date is implemented and you do not elect to redeem your public shares, provided that you are a stockholder on the record date for a meeting to consider a business combination, you will retain the right to vote on a business combination when it is submitted to stockholders and the right to redeem your public shares for cash in the event a business combination is approved and completed or we have not consummated a business combination by the Termination Date.
If the Charter Amendment Proposal is not approved, we may put the Adjournment Proposal to a vote in order to seek additional time to obtain sufficient votes in support of an Extension. If the Adjournment Proposal is not approved, the Board may not be able to adjourn the Special Meeting to a later date or dates in the event that there are insufficient votes for, or otherwise in connection with, the approval of the Charter Amendment Proposal.
We reserve the right at any time to cancel the Special Meeting and not to submit to our stockholders the Charter Amendment Proposal and implement the Charter Amendment. In the event the Special Meeting is cancelled, we may dissolve and liquidate in accordance with the charter.
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Why should I vote “FOR” the Charter Amendment Proposal?
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Our Board believes stockholders will benefit from the consummation of a business combination and is proposing the Charter Amendment Proposal to extend the date by which we have to complete a business combination until the Extended Date (or Additional Charter Extension Date, if applicable). An Extension would give us additional time to complete a business combination, which our Board believes in the best interests of the shareholders.
The Board believes that it is in the best interests of our stockholders that an Extension be obtained to provide additional amount of time to consummate a business combination. Without an Extension, we believe that there is substantial risk that we might not, despite our best efforts, be able to complete a business combination on or before September 8, 2023. If that were to occur, we would be precluded from completing a business combination and would be forced to liquidate even if our stockholders are otherwise in favor of consummating a business combination.
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We believe that given our expenditure of time, effort and money on searching for potential business combination opportunities, circumstances warrant providing public stockholders an opportunity to consider a business combination and that it is in the best interests of our stockholders that we obtain an Extension. In the event that we enter into a definitive agreement for an initial business combination prior to the Special Meeting, we will issue a press release and file a Current Report on Form 8-K with the SEC announcing the proposed business combination.
Our Board recommends that you vote in favor of the Charter Amendment Proposal.
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Why should I vote “FOR” the Adjournment Proposal?
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If the Adjournment Proposal is not approved by our stockholders, our Board may not be able to adjourn the Special Meeting to a later date in the event that there are insufficient votes for, or otherwise in connection with, the approval of the Charter Amendment Proposal.
We reserve the right at any time to cancel the Special Meeting and not to submit to our stockholders the Charter Amendment Proposal and implement the Charter Amendment. In the event the Special Meeting is cancelled, we may dissolve and liquidate in accordance with the charter.
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When would the Board abandon the Charter Amendment Proposal?
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We intend to hold the Special Meeting to approve the Charter Amendment only if the Board has determined as of the time of the Special Meeting that we may not be able to complete a business combination on or before September 8, 2023. If we complete a business combination on or before September 8, 2023, we will not implement an Extension. Additionally, our Board will abandon the Charter Amendment if our stockholders do not approve the Charter Amendment Proposal.
Notwithstanding stockholder approval of the Charter Amendment Proposal, our Board will retain the right to abandon and not implement the Charter Amendment at any time without any further action by our stockholders. In addition, we will not proceed with an Extension or any redemptions in connection therewith if the number of redemptions or repurchases of our public shares causes us to have less than $5,000,001 of net tangible assets following approval of the Charter Amendment Proposal.
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How do the Company insiders intend to vote their shares?
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| | The Sponsor and all of our directors and officers are not eligible to vote their shares at the Special Meeting. | |
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What vote is required to adopt the proposals?
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The approval of the Charter Amendment Proposal will require the affirmative vote of holders of at least 65% of the Company’s common stock outstanding and entitled to vote on the matter on the record date.
The approval of the Adjournment Proposal will require the affirmative vote of the majority of the votes cast by stockholders represented in person or by proxy.
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What if I don’t want to vote “FOR” the Charter Amendment Proposal?
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| | If you do not want the Charter Amendment Proposal to be approved, you must abstain, not vote, or vote “AGAINST” such proposal. You will be entitled to redeem your public shares for cash in connection with this vote whether or not you vote on the Charter Amendment Proposal so long as you elect to redeem your public shares for a pro rata portion of the funds available in the Trust Account in | |
| | | | connection with the Charter Amendment. If the Charter Amendment Proposal is approved, and the Extension to the Extended Date is implemented, then the Withdrawal Amount will be withdrawn from the Trust Account and paid to the redeeming holders. | |
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What happens if the Charter Amendment Proposal is not approved?
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Our Board will abandon the Charter Amendment if our stockholders do not approve the Charter Amendment Proposal.
If the Charter Amendment Proposal is not approved and we have not consummated a business combination by the Original Termination Date, we will (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem 100% of the public shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest earned and not previously released to the Company to pay its taxes, if any (less up to $100,000 of interest to pay dissolution expenses), divided by the number of then issued and outstanding public shares, which redemption will completely extinguish the rights of the Public Stockholders (as defined in the charter) as stockholders (including the right to receive further liquidating distributions, if any), and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the Company’s remaining stockholders and the Company’s board of directors, dissolve and liquidate, subject in each case to the Company’s obligations under the DGCL to provide for claims of creditors and other requirements of applicable law.
There will be no redemptions in respect of which public stockholders have made an Election, and we will, as promptly as reasonably practicable, and in any event within 5 business days, return any shares tendered to the Company’s transfer agent prior to the Special Meeting.
There will be no distribution from the Trust Account with respect to our warrants which will expire worthless in the event we wind up.
In the event of a liquidation, our Sponsor, directors and officers will not receive any monies held in the Trust Account as a result of their ownership of the Founder Shares, the Private Placement Warrants or any Class A common stock issued in connection with the conversion of the Founder Shares.
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If the Charter Amendment Proposal is approved, what happens next?
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| | If the Charter Amendment Proposal is approved, we will continue to attempt to consummate a business combination until the Extended Date (or Additional Charter Extension Date, if applicable). We expect to seek stockholder approval of a business combination. If stockholders approve a business combination, we expect to consummate a business combination as soon as possible following such stockholder approval. Because we have only a limited time to complete our initial business combination, even if we are able to effect an Extension, our failure to obtain any required regulatory approvals in connection with a business combination or to resolve certain ongoing investigations within the requisite time period may require us to liquidate. If we liquidate, our public shareholders may only receive $10.00 per share, and our warrants will expire worthless. This will also cause you to lose any potential investment opportunity in a target company and the chance of realizing future gains on your investment through any price appreciation in the combined company. | |
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Upon approval of the Charter Amendment Proposal by holders of at least 65% of the Company’s common stock outstanding and entitled to vote on the matter as of the record date, we will file an amendment to the charter with the Secretary of State of the State of Delaware in the form set forth in Annex A hereto. We will remain a reporting company under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and our units, Class A common stock and public warrants will remain publicly traded.
If the Charter Amendment Proposal is approved, the removal of the Withdrawal Amount from the Trust Account will reduce the amount remaining in the Trust Account and increase the percentage interest of our common stock held by our Sponsor, our directors and our officers as a result of their ownership of the Founder Shares and Private Placement Warrants.
On August 16, 2022, the Inflation Reduction Act of 2022 (the “IRA”) was signed into federal law. The IRA provides for, among other things, a new U.S. federal 1% excise tax (the “Excise Tax”) on certain repurchases of stock by publicly traded U.S. domestic corporations and certain U.S. domestic subsidiaries of publicly traded foreign corporations occurring on or after January 1, 2023. Any redemption of the shares of the common stock of the Company on or after January 1, 2023, such as the redemptions discussed herein, may be subject to the Excise Tax. The Company confirms that amounts placed in the Trust Account in connection with the IPO, as well as any interest earned thereon, will not be used to pay for the Excise Tax.
Notwithstanding stockholder approval of the Charter Amendment Proposal, our Board will retain the right to abandon and not implement the Charter Amendment at any time without any further action by our stockholders.
We reserve the right at any time to cancel the Special Meeting and not to submit to our stockholders the Charter Amendment Proposal and implement the Charter Amendment. In the event the Special Meeting is cancelled, we may dissolve and liquidate in accordance with the charter.
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What happens to the Company’s warrants if the Charter Amendment Proposal is not approved?
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| | If the Charter Amendment Proposal is not approved and we have not consummated a business combination by the Original Termination Date, we will (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem 100% of the public shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest earned and not previously released to the Company to pay its taxes, if any (less up to $100,000 of interest to pay dissolution expenses), divided by the number of then issued and outstanding public shares, which redemption will completely extinguish the rights of the Public Stockholders (as defined in the charter) as stockholders (including the right to receive further liquidating distributions, if any), and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the Company’s remaining stockholders and the Company’s board of directors, dissolve and liquidate, subject in each case to the Company’s obligations under the DGCL. There will be no distribution from the Trust Account with respect to our warrants, which will expire worthless in the event of our winding up. | |
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What happens to the Company’s warrants if the Charter Amendment Proposal is approved?
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| | If the Charter Amendment Proposal is approved, we will retain the blank check company restrictions previously applicable to us and continue to attempt to consummate a business combination until the Extended Date (or Additional Charter Extension Date, if applicable). The public warrants will remain outstanding and only become exercisable until the later of 30 days after the completion of our initial business combination and 12 months from the closing of our IPO, provided in each case we have an effective registration statement under the Securities Act covering the shares of Class A common stock issuable upon exercise of the warrants and a current prospectus relating to them is available (or we permit holders to exercise warrants on a cashless basis). | |
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Am I able to exercise my redemption rights in connection with a business combination?
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| | If you were a holder of common stock as of the close of business on the record date for a meeting to seek stockholder approval of a business combination, you will be able to vote on a business combination. The Special Meeting relating to the Charter Amendment Proposal does not affect your right to elect to redeem your public shares in connection with a business combination, subject to any limitations set forth in our charter (including the requirement to submit any request for redemption in connection with a business combination on or before the date that is one business day before the special meeting of stockholders to vote on a business combination). If you disagree with a business combination, you will retain your right to redeem your public shares upon consummation of a business combination in connection with the stockholder vote to approve a business combination, subject to any limitations set forth in our charter. | |
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How do I attend the meeting?
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You will need your control number for access. If you do not have your control number, contact Continental Stock Transfer & Trust Company at the phone number or e-mail address below. Beneficial investors who hold shares through a bank, broker or other intermediary, will need to contact them and obtain a legal proxy. Once you have your legal proxy, contact Continental Stock Transfer & Trust Company to have a control number generated. Continental Stock Transfer & Trust Company contact information is as follows: Continental Stock Transfer & Trust Company, 1 State Street Plaza, 30th Floor, New York, New York 10004, or email [email protected].
Stockholders will also have the option to listen to the Special Meeting by telephone by calling:
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Within the U.S. and Canada: +1 800-450-7155 (toll-free)
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Outside of the U.S. and Canada: +1 857-999-9155 (standard rates apply)
The passcode for telephone access: 6161282#. You will not be able to vote or submit questions unless you register for and log in to the Special Meeting webcast as described herein.
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How do I change or revoke my vote?
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| | You may change your vote by e-mailing a later-dated, signed proxy card to [email protected], so that it is received by us prior to the Special Meeting or by attending the Special Meeting online and voting. You also may revoke your proxy by sending a notice of revocation to us, which must be received by us prior to the Special Meeting. | |
| | | | Please note, however, that if on the record date your shares were held, not in your name, but rather in an account at a brokerage firm, custodian bank, or other nominee, then you are the beneficial owner of shares held in “street name” and these proxy materials are being forwarded to you by that organization. If your shares are held in street name, and you wish to attend the Special Meeting and vote at the Special Meeting online, you must follow the instructions included with the enclosed proxy card. | |
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How are votes counted?
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Votes will be counted by the inspector of election appointed for the meeting, who will separately count “FOR” and “AGAINST” votes and abstentions. The Charter Amendment Proposal must be approved by the affirmative vote of at least 65% of the Company’s common stock outstanding and entitled to vote on the matter as of the record date, voting together as a single class. Accordingly, a Company stockholder’s failure to vote by proxy or to vote online at the Special Meeting or an abstention with respect to the Charter Amendment Proposal will have the same effect as a vote “AGAINST” such proposal.
The approval of the Adjournment Proposal requires the affirmative vote of the majority of the votes cast by stockholders represented in person or by proxy. Accordingly, a Company stockholder’s failure to vote by proxy or to vote online at the Special Meeting will not be counted towards the number of shares of common stock required to validly establish a quorum, and if a valid quorum is otherwise established, it will have no effect on the outcome of any vote on the Adjournment Proposal.
Abstentions will be counted in connection with the determination of whether a valid quorum is established but will have no effect on the outcome of the Adjournment Proposal.
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If my shares are held in “street name,” will my broker automatically vote them for me?
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| | No. Under the rules of various national and regional securities exchanges, your broker, bank, or nominee cannot vote your shares with respect to non-discretionary matters unless you provide instructions on how to vote in accordance with the information and procedures provided to you by your broker, bank, or nominee. We believe all the proposals presented to the stockholders will be considered non-discretionary and therefore your broker, bank, or nominee cannot vote your shares without your instruction. Your bank, broker, or other nominee can vote your shares only if you provide instructions on how to vote. You should instruct your broker to vote your shares in accordance with directions you provide. If your shares are held by your broker as your nominee, which we refer to as being held in “street name,” you may need to obtain a proxy form from the institution that holds your shares and follow the instructions included on that form regarding how to instruct your broker to vote your shares. | |
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What is a quorum requirement?
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A quorum of stockholders is necessary to hold a valid meeting. Holders of a majority in voting power of our common stock on the record date issued and outstanding and entitled to vote at the Special Meeting, present in person or represented by proxy, constitute a quorum.
Your shares will be counted towards the quorum only if you submit a valid proxy (or one is submitted on your behalf by your broker, bank
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| | | | or other nominee) or if you vote online at the Special Meeting. Abstentions will be counted towards the quorum requirement. In the absence of a quorum, the chairman of the meeting has power to adjourn the Special Meeting. As of the record date for the Special Meeting, 1,766,306 shares of our common stock would be required to achieve a quorum. | |
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Who can vote at the Special Meeting?
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Only certain holders of record of our common stock at the close of business on August 23, 2023 are entitled to have their vote counted at the Special Meeting and any adjournments or postponements thereof. On this record date, 12,157,610 shares of our Class A common stock and 1 share of our Class B common stock were outstanding. Of such shares of common stock, 8,624,999 are not entitled to vote until after the closing of a business combination (which amount represents converted Founder Shares), leaving 3,532,611 shares of Class A common stock and 1 share of Class B common stock eligible to vote at the Special Meeting.
Stockholder of Record: Shares Registered in Your Name. If on the record date your shares were registered directly in your name with our transfer agent, Continental Stock Transfer & Trust Company, then you are a stockholder of record. As a stockholder of record, you may vote online at the Special Meeting or vote by proxy. Whether or not you plan to attend the Special Meeting online, we urge you to fill out and return the enclosed proxy card to ensure your vote is counted.
Beneficial Owner: Shares Registered in the Name of a Broker or Bank. If on the record date your shares were held, not in your name, but rather in an account at a brokerage firm, bank, dealer, or other similar organization, then you are the beneficial owner of shares held in “street name” and these proxy materials are being forwarded to you by that organization. As a beneficial owner, you have the right to direct your broker or other agent on how to vote the shares in your account. You are also invited to attend the Special Meeting. However, since you are not the stockholder of record, you may not vote your shares online at the Special Meeting unless you request and obtain a valid proxy from your broker or other agent.
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Does the Board recommend voting for the approval of the Charter Amendment Proposal and the Adjournment Proposal?
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| | Yes. After careful consideration of the terms and conditions of these proposals, our Board has determined that the Charter Amendment and, if presented, the Adjournment Proposal are in the best interests of the Company and its stockholders. The Board recommends that our stockholders vote “FOR” the Charter Amendment Proposal and the Adjournment Proposal. | |
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What interests do the Company’s Sponsor, directors and officers have in the approval of the proposals?
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| | Our Sponsor, directors and officers have interests in the proposals that may be different from, or in addition to, your interests as a stockholder. These interests include ownership of 8,625,000 Founder Shares (purchased for $25,000) and 6,066,667 Private Placement Warrants (purchased for $9,100,000), which would expire worthless if a business combination is not consummated. See the section entitled “The Charter Amendment Proposal — Interests of our Sponsor, Directors and Officers.” | |
| Do I have appraisal rights if I object to the Charter Amendment Proposal? | | |
Our stockholders do not have appraisal rights in connection with the Charter Amendment Proposal under the DGCL.
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What do I need to do now?
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| | We urge you to read carefully and consider the information contained in this Proxy Statement, including the annexes, and to consider how the proposals will affect you as our stockholder. You should then vote as soon as possible in accordance with the instructions provided in this Proxy Statement and on the enclosed proxy card. | |
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How do I vote?
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If you are a holder of record of our common stock, you may vote online at the Special Meeting or by submitting a proxy for the Special Meeting. Whether or not you plan to attend the Special Meeting online, we urge you to vote by proxy to ensure your vote is counted. You may submit your proxy by completing, signing, dating and returning the enclosed proxy card in the accompanying pre-addressed postage paid envelope. You may still attend the Special Meeting and vote online if you have already voted by proxy.
If your shares of our common stock are held in “street name” by a broker or other agent, you have the right to direct your broker or other agent on how to vote the shares in your account. You are also invited to attend the Special Meeting. However, since you are not the stockholder of record, you may not vote your shares online at the Special Meeting unless you request and obtain a valid proxy from your broker or other agent.
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How do I redeem my shares of Class A common stock?
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If the Extension to the Extended Date is implemented, each of our public stockholders may seek to redeem all or a portion of its public shares at a per- share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest (which interest shall be net of taxes payable), divided by the number of then outstanding public shares. You will also be able to redeem your public shares in connection with any stockholder vote to approve a proposed business combination, or if we have not consummated a business combination by the Extended Date (or Additional Charter Extension Date, if applicable).
In order to exercise your redemption rights, you must, prior to 5:00 p.m. Eastern Time on September 7, 2023 (one business day before the Special Meeting) tender your shares physically or electronically and submit a request in writing that we redeem your public shares for cash to Continental Stock Transfer & Trust Company, our transfer agent, at the following address:
Continental Stock Transfer & Trust Company
1 State Street Plaza, 30th Floor New York, New York 10004 Attn: SPAC Redemption Team E-mail: [email protected] |
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What should I do if I receive more than one set of voting materials?
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| | You may receive more than one set of voting materials, including multiple copies of this Proxy Statement and multiple proxy cards or voting instruction cards, if your shares are registered in more than one name or are registered in different accounts. For example, if you hold your shares in more than one brokerage account, you will receive a separate voting instruction card for each brokerage account in which you hold shares. Please complete, sign, date and return each proxy card and voting instruction card that you receive in order to cast a vote with respect to all of your Company shares. | |
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Who is paying for this proxy solicitation?
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| | We will pay for the entire cost of soliciting proxies from our working capital. We have engaged Morrow Sodali LLC to assist in the | |
| | | | solicitation of proxies for the Special Meeting. We have agreed to pay the Proxy Solicitor a fee of $15,000. We will also reimburse the Proxy Solicitor for reasonable out-of-pocket expenses and will indemnify the Proxy Solicitor and its affiliates against certain claims, liabilities, losses, damages and expenses. In addition to these mailed proxy materials, our directors and officers may also solicit proxies in person, by telephone or by other means of communication. These parties will not be paid any additional compensation for soliciting proxies. We may also reimburse brokerage firms, banks and other agents for the cost of forwarding proxy materials to beneficial owners. While the payment of these expenses will reduce the cash available to us to consummate an initial business combination if the Extension to the Extended Date is approved, we do not expect such payments to have a material effect on our ability to consummate an initial business combination. | |
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Who can help answer my questions?
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If you have questions about the proposals or if you need additional copies of the Proxy Statement or the enclosed proxy card you should contact our proxy solicitor, Morrow Sodali LLC, at (800) 662-5200 (toll free) or by email at [email protected].
You may also contact us at: [email protected].
You may also obtain additional information about the Company from documents filed with the SEC by following the instructions in the section entitled “Where You Can Find More Information.”
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Class A Common Stock
Beneficially Owned |
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Class B Common Stock
Beneficially Owned(2) |
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Name and Address of Beneficial
Owner(1) |
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Number of
Shares |
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%
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Number of
Shares |
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%
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% of Total
Voting Power |
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Directors and Executive Officers | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||
Atlantic Coastal Acquisition Management LLC(3)
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| | | | 8,474,999 | | | | | | 69.7% | | | | | | 1 | | | | | | 100% | | | | | | * | | | | | ||||
Shahraab Ahmad(3)
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| | | | 8,474,999 | | | | | | 69.7% | | | | | | 1 | | | | | | 100% | | | | | | * | | | | | ||||
Burt Jordan(4)
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| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | ||||
Anthony D. Eisenberg(4)
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| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | ||||
Jason Chryssicas(4)
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| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | ||||
Ned Sizer(4)
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| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | ||||
Joanna Lord
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| | | | 50,000 | | | | | | * | | | | | | — | | | | | | — | | | | | | * | | | | | ||||
Bryan Dove(4)
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| | | | 50,000 | | | | | | * | | | | | | — | | | | | | — | | | | | | * | | | | | ||||
Iqbaljit Kahlon(4)
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| | | | 50,000 | | | | | | * | | | | | | — | | | | | | — | | | | | | * | | | | | ||||
All executive officers and directors as a group (8 persons)(5)
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| | | | 8,624,999 | | | | | | 70.9% | | | | | | 1 | | | | | | 100.0% | | | | | | * | | | | |
333 Ludlow Street, 5th Floor, South Tower
Stamford, CT 06902
Tel: (800) 662-5200 (toll-free) or
(203) 658-9400 (banks and brokers can call collect)
Email: [email protected]
INCORPORATION OF ATLANTIC COASTAL ACQUISITION CORP.
Delaware General Corporation Law
| | | | ATLANTIC COASTAL ACQUISITION CORP. | | | | | |||
| | | | By: | | |
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| | | | | | | Name: Shahraab Ahmad | | | ||
| | | | | | | Title: Chief Executive Officer | | |
6 St Johns Lane, Floor 5
New York, NY 10013
FOR THE SPECIAL MEETING OF STOCKHOLDERS TO BE HELD ON SEPTEMBER 8, 2023
| Proposal 1 — Charter Amendment Proposal | | |
FOR
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AGAINST
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ABSTAIN
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| Amend the Company’s second amended and restated certificate of incorporation to (i) extend the date (the “Termination Date”) by which the Company has to complete a business combination from September 8, 2023 (the “Original Termination Date”) to March 8, 2024 (the “Extended Date) or such earlier date as determined by the Board of Directors and to allow the Company, without another vote, to elect to extend the Termination Date to consummate an initial business combination on a monthly basis for up to six times by an additional one month each time after the Extended Date, by resolution of the Company’s board of directors, if requested by Atlantic Coastal Acquisition Management LLC, a Delaware limited liability company, and upon five days’ advance notice prior to the applicable Termination Date, until September 8, 2024 or a total of up to 12 months after the Original Termination Date. | | |
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| Proposal 2 — Adjournment Proposal | | |
FOR
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AGAINST
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ABSTAIN
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| Approve the adjournment of the Special Meeting to a later date or dates, if necessary, to permit further solicitation and vote of proxies in the event that there are insufficient votes for, or otherwise in connection with, the approval of the Charter Amendment Proposal, which we refer to as the “Adjournment Proposal.” | | |
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