Enzolytics Inc (ENZC)

[sspalmo]

I don't see that happening. I think the only reason SAGA still exists is because of the lawsuit they are currently in. The articles of inception (original and revised) of the SPAC SAGA stated clearly there were deadlines and criteria they had to meet otherwise they would need to start the de-SPAC process. Missing an extension deadline, in my opinion, should have triggered the start of the de-SPAC process. From what I've been seeing lately whoever it is that is running these companies (ENZC, SAGA, BGEN, VIRO, etc) are doing whatever they want to do and does not feel the need to follow rules, laws, or abide by contracts.

"The funds that SPACs raise in an IPO are placed in an interest-bearing trust account that cannot be disbursed except to complete an acquisition. In the event it is unable to complete an acquisition, funds will be returned and the SPAC will ultimately be liquidated.
A SPAC has two years to complete a deal or face liquidation. In some cases, some of the interest earned from the trust can serve as the SPAC’s working capital. After an acquisition, a SPAC is usually listed on one of the major stock exchanges."

"There are any number of reasons why a SPAC deal might fail.

The SPAC may not be able to find a suitable acquisition target in time. This can happen if the SPAC’s management team is not able to identify a private company that fits the investment criteria outlined in the SPAC’s prospectus, or if the private company is not interested in being acquired by the SPAC.
The SPAC’s management team may not be able to negotiate favorable terms for the acquisition, such as the purchase price or the structure of the deal.
The SPAC may not be able to raise enough capital through the IPO to fund the acquisition. This can happen if there is not enough investor interest in the SPAC, or if market conditions are unfavorable.
Finally, the SPAC deal can fail if the acquisition is not approved by the SPAC’s shareholders or by regulatory authorities."

"What happens if a SPAC does not merge?
SPACs have a specific time frame in which they need to merge with another company and close a deal. This time frame is usually 18 to 24 months. If a SPAC cannot merge during the allotted time, then it liquidates and all funds are returned to investors."

https://www.investopedia.com/terms/s/spac.asp