New Providence Acquisition Corp. II Plans Liquidation Following Termination of Business Combination Proposal

New Providence Acquisition Corp. II (NASDAQ: NPABU) has decided to undertake a course of action following recent developments. On November 8, 2024, the company revealed that its board of directors has opted to abandon the proposed extension, which sought to delay the deadline for concluding an initial business combination from November 9, 2024, to November 9, 2025.

The decision, which stemmed from an approval by the stockholders at a special meeting held on November 1, 2024, entails the cessation of operations aside from those essential to wind up the company promptly. Moreover, New Providence Acquisition Corp. II intends to redeem all shares of its Class A common stock (referred to as Public Shares) that were part of the units issued during its initial public offering at a per-share cash price. This price will be determined by the aggregate amount held in the trust account, including accrued interest, per outstanding Public Share. This redemption is slated to eliminate the rights of public stockholders as stockholders, subject to relevant laws.

Furthermore, after the Redemption process, contingent on remaining stockholder and board approval, the company plans to liquidate the funds in the Trust Account and dissolve itself in accordance with Delaware law. The dissolution will also cover obligations towards creditors and other relevant laws. It is worth noting that the company’s warrants will not be subject to redemption or liquidating distributions and will expire without value.

In related operational steps, New Providence Acquisition Corp. II will utilize Continental Stock Transfer & Trust Company as its trustee to handle the disbursement of funds from the Trust Account for Liquidation purposes. Following the Liquidation, the company expects to redeem all outstanding Public Shares at an estimated redemption price of around $10.89 per share, after deducting dissolution expenses up to $100,000, but before tax payments.

Record holders of Public Shares are advised to deliver their shares to Continental, the company’s transfer agent, to obtain their share of the Trust Account proceeds. Beneficial owners with Public Shares held in “street name” however, will not be required to take action to receive the Redemption Amount.

New Providence Acquisition Corp. II has indicated that the intended actions will be diligently executed, with the Redemption Amount expected to be disbursed within ten business days post instructions to commence the Redemption and Liquidation process. The company’s sponsor, New Providence Acquisition II LLC, has committed to waiving its redemption rights regarding certain shares.

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This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read New Providence Acquisition Corp. II’s 8K filing here.

New Providence Acquisition Corp. II Company Profile

New Providence Acquisition Corp. II does not have significant operations. It intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or other similar business combination with one or more businesses in the consumer industry. The company was incorporated in 2020 and is based in Austin, Texas.