SINGAPORE – Pegasus Asia said it will not conclude a business combination “after considering macroeconomic and market conditions”, partially confirming an earlier media report that stated it was one of two remaining Singapore-listed special purpose acquisition companies (Spacs) to be dissolved.
In a Dec 20 filing, Pegasus said it will make an announcement in due course on the next steps for shareholders to redeem all of their issued outstanding shares of Class A ordinary shares at 0.01 cent apiece.
Following this, the Spac will cease operations and wind up its business.
There will be no redemption rights nor liquidating distributions regarding the company’s warrants.
Shares of Pegasus on the Singapore Exchange (SGX) were unchanged at $4.84 as at 9.38am on Dec 20 with no trades done, before it requested a trading halt effective from 9.39am.
Singapore-listed Spacs have until January 2024 to announce their potential business combination, which is also known as a de-Spac transaction.
If the Spac is unable to find a suitable acquisition target, it is required to dissolve and return the funds to investors.
Earlier on Dec 20, The Edge Singapore reported that Pegasus Asia and the other remaining SGX-listed Spac, Novo Tellus Alpha Acquisition (NTAA), were seeking to dissolve the blank cheque companies due to lower-than-expected numbers amid unfavourable market conditions.
Citing sources familiar with the matter, the media outlet said NTAA is anticipated to release its announcement next week.
This came as both Spacs are not intending to merge with any target companies, unlike Vertex Technology Acquisition Corporation, which recently merged with livestreaming platform 17Live.
17Live shares tumbled 18.8 per cent on its first day of trading to $3.15. They have since fallen further, closing on Dec 19 at $1.56, and sliding 4.5 per cent to $1.49 as at midday on Dec 20.
Shares of NTAA slipped after Pegasus’ announcement, but recovered to trade up 2 per cent at $5.