Ethereum Builder ConsenSys and AMD SPAC Plows on Despite 95% of Shares Being Redeemed

.ConsenSys and chipmaker AMD are moving ahead with their plans to take their joint venture W3BCLOUD public via SPAC, despite investors redeeming 95% of shares in the blank check company. IanAllison123 reports

The W3BCLOUD SPAC also sought a three-month extension, giving those involved in the deal until May 17 to raise enough capital to meet the $150 million minimum cash condition to go public.

“As markets got tough last year, deals took longer to get done and SPACs started nearing the end of their lives,” said Alan Annex, co-chair of law firm Greenberg Traurig’s global corporate practice. “The requirement in the charter, designed to protect the shareholders’ money, says you can't extend the life of the SPAC without offering people the option to get their money back at the time you offer that extension.

Some of the SPACs today that are experiencing high redemption rates may involve situations where the target wants to go public for reasons other than just raising the money, Annex added. “When it comes to high redemption rates, it’s not that people don't like the company, just that they don't like it at $10 a share,” he said.being hosted in data centers owned by giants like AWS.

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