What are the consequences of the liquidation of Yunhong International for investors?

Are you worried about the recent news regarding the liquidation of Yunhong International (ZGYH)? This article will discuss what the liquidation means to investors.

Yunhong International is a SPAC incorporated in February 2020. The CEO of this SPAC is Patrick Orlando. A SPAC is a company that has been formed for the purpose of acquiring another company. The name comes from the acronym “Special Purpose Acquisition Company.” In other words, it’s a company set up specifically to buy another company. SPACs have become very popular in recent years because they allow companies to raise money quickly and cheaply. They also help companies avoid some of the more onerous regulations associated with being an actual public company. This makes them attractive to many start-ups and small businesses who want to get their foot into the door without having to go through the rigmarole of raising capital via traditional routes.

Why will Yunhong International be liquidated?
The Yunhong’s sponsor has decided to stop contributing to the trust. Because of this, no further contributions will be made and Yunhong International shall be liquidated.

The consequences of the liquidation
There is relatively good and very bad news. The bad news is for the holders of the warrants and rights. The good news is for the holders of the ordinary Class A Ordinary Shares.

Class A Ordinary Shares
All of the outstanding Class A Ordinary Shares will get a redemption of approximately $10.31 per-share. That means that if you were holding 100 shares of Class A common stock when the liquidation will occur, you will receive $1,031.00

Warrants and rights
There is no good news for someone who holds warrants or rights. You will not get anything back. Your total payout will be $0.00.

It’s not entirely clear what will happen if you hold units. You can separate the units in class A ordinary shares, warrants and rights. However, you need to tell your broker to do so. It takes at least one whole business day to complete the separation.

The redemption will be completed before December 3, 2021.

We hope this helps you understand how the liquidation of Yunhong International will affect you. Feel free to leave a comment below.

This article is for educational and entertainment purposes only. Wavesdesk doesn’t provide advice. Please do your own due diligence or consult your financial advisor.

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4 thoughts on “What are the consequences of the liquidation of Yunhong International for investors?

  1. I owned 1000 shares and forgot about them. I saw my account became $0. I bought them using my TDAmeritrade account. What should I do? Am I losing all the money I had on this stock?

    1. If you have 1,000 shares then you will receive around $1,031.00 as stated in the post. It seems that you did not make any profit on your investment. You should check with your broker when they credit you. Hopefully, you learned something from this experience.

  2. I used TD Ameritrade app bought the shares myself. Should I contact TD Ameritrade asking when I should receive the money?

    1. Yes, you should ask for the money from TD Ameritrade. They will pay it to you as soon as they receive it from the trust. You are recommended to contact your broker directly to see if there’s anything else you need to do.

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