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It certainly wasn't a slam-dunk but, ultimately, Patrick Orlando's Benessere Capital Acquisition Corp. (BENE) avoided a forced liquidation with shareholders approving an extension in the SPAC's deadline to complete a business combination out until July 2022. There were, however, >1M in redemptions meaning at least $10M of the SPAC's $116M in trust has left.
In case you haven't been following, Benessere entered into a pact to merge with eCombustible Energy in late November. However Benessere's SPAC IPO was in January 2021, and its 12-month deadline date to complete a business combination was 1/7/2022.
As a result, BENE sought an extension which requires a shareholder vote. In order to incentivize shareholders to vote "YES" an additional 20c per non-redeemed share would be deposited into their trust account, making the new redemption floor a juicy $10.35. However, it seemed as if the support wasn't there at the original vote date (1/5) as the meeting had to be adjourned until the deadline date, 1/7.
This put BENE at real risk of facing a forced liquidation and required Orlando to go on a media spree, putting out a couple press releases reminding (persuading) shareholders to vote. Orlando stated:
...Failing to vote could result in the need to commence the liquidation process and stockholders will be unable to capitalize on the potential opportunity presented by the proposed business combination. We are requesting stockholders of record at the close of business on December 8, 2021, to vote before 10:00am on January 7, 2022. Every stockholder’s vote is important, regardless of the number of shares held, to help us continue our momentum to build shareholder value for this company. Not voting is NOT a no vote. Shareholders must vote either ‘Yes’ or “No” for their vote to count.”
BENE's warrants, which would've been worthless in a liquidation are surging on the news, up +40% today to $0.80. Had the vote ultimately failed, BENE would've been the first SPAC to liquidate since Orlando's Yunhong International (ZGHY) liquidated last year.
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(Disclaimers: this is not investment advice. The author may be long one or more stocks mentioned in this report.)