Atlantic Coastal Acquisition Corp has announced it has terminated its business combination agreement with Essentium that was set to see the 3D printing company publicly listed on the Nasdaq stock exchange.
The termination of the agreement was agreed mutually by all relevant parties, with Atlantic Coastal to seek ‘an alternative business combination.’ Essentium announced it was to pursue a public listing via the merger with Atlantic Coastal in December.
Per the termination agreement, Atlantic Coastal will be granted the right to receive payments in the future, subject to certain circumstances relating to the consumption of future financing transactions by Essentium, a sale of Essentium, or Atlantic Coastal’s inability to consummate a business combination transaction. The parties have also agreed that in the event a sale of Essentium does not occur on or prior to March 8th 2023, Essentium shall deliver a warrant to Atlantic Coastal providing for the ability of Atlantic Coastal (or its successors or assigns) to acquire a stake equal to five percent of Essentium at an implied valuation equal to $500,000,000.
“We wish Essentium well in their endeavours,” commented Shahraab Ahmad, Chairman and Chief Executive Officer of Atlantic Coastal. “Atlantic Coastal will focus its efforts on identifying transformational companies within the mobility space as we look toward maximising value for shareholders through our next proposed business combination.”
“We appreciate the Atlantic Coastal team’s support and guidance throughout this process, and we are disappointed that market conditions prevented the parties from consummating this agreement,” added Essentium CEO Blake Teipel. “We will continue to leverage the strength of our additive manufacturing technology and product system validated by the Department of Defence to continue to advance additive manufacturing globally.”
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