GRAND CAYMAN, Cayman Islands–(BUSINESS WIRE)–Burgundy Technology Acquisition Corporation (the “Company”) (NASDAQ: BTAQ, BTAQU, BTAQW), a technology-focused special purpose acquisition company, announced today that it will repurchase all of its common stock from outstanding Class A shares (the “Public Shares”), effective after the close of business on March 1, 2022, as the Company will not complete a first business combination within the time period required by its amended and updated memorandum and articles of association. day (the “Statutes”).
As set forth in the Company’s S-1 and the Company’s Articles of Incorporation, if the Company is unable to complete an initial business combination within 18 months, the Company will: (i) cease all activities except for the purposes of liquidation, (ii) as soon as reasonably practicable but not more than ten business days thereafter, redeem the public shares, at a price per share, payable in cash, equal to the aggregate amount then on deposit in the account in trust, including interest earned on the trust account (less up to $100,000 interest to pay termination costs and net of taxes payable), divided by the number of public shares then outstanding, the redemption of which will completely extinguish the rights of the Public Shareholders as shareholders (including the right to receive further liquidation distributions, if any), subject to applicable law, and (iii) as expeditiously as reasonably possible after such redemption, subject to the approval of the remaining shareholders of the Company and the Board of Directors of the Company. ectors, liquidate and dissolve, subject in each case to the Company’s obligations under Cayman Islands law to provide for the claims of creditors and the requirements of other applicable laws.
The redemption price per Share for the Public Shares will be approximately $10.05 (the “Redemption Amount”). The balance in the trust account as of December 31, 2021 was approximately $346,759,664, which includes approximately $34,664 in interest and dividend income (cash surplus greater than $346,725,000, funds deposited in the trust account). Pursuant to the terms of the related trust agreement, the Company expects to retain interest and dividend income from the trust account to pay the termination costs. Accordingly, a total of $346,725,000 is expected to be available for redemption of the 34,500,000 outstanding Class A Shares, resulting in a redemption price of $10.05 per share.
Effective at the close of business on March 1, 2022, the public shares will be deemed canceled and will represent only the right to receive the Redemption Amount.
The Redemption Amount will be payable to holders of public shares upon presentation of their respective share or unit certificates or other delivery of their shares or units to the Company’s transfer agent, Continental Stock Transfer & Trust Company. However, beneficial owners of public shares held in “street name” will not need to take any action to receive the redemption amount.
There will be no redemption rights or liquidation distributions with respect to the Company’s Warrants, which will expire worthless.
The Company’s sponsor has waived its redemption rights to the outstanding Founder’s Shares and Private Placement Shares. After March 1, 2022, the Company will cease all activities except those necessary for the liquidation of the activities of the Company.
The Company expects NASDAQ to file a Form 25 with the United States Securities and Exchange Commission (the “Commission”) to delist its securities. The Company then plans to file a Form 15 with the Commission to terminate the registration of its securities under the Securities Exchange Act of 1934, as amended.
About the Burgundy Technology Acquisition Corporation
The Corporation d’Acquisition Technologique de Bourgogne is a blank check corporation incorporated for the purpose of effecting a merger, capital exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more companies.
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. When used in this press release, the words “could”, “should”, “will”, “could”, “believe”, “anticipate”, “intend”, “estimate”, “s ‘expect’, ‘project’, the negative of these terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on current information and expectations, forecasts and assumptions, and involve a number of judgments, risks and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing the views of the Company as of any subsequent date, and the Company undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date on which they were made, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. You should not place undue reliance on these forward-looking statements. Due to a number of known and unknown risks and uncertainties, actual results or performance may differ materially from those expressed or implied by such forward-looking statements.