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.
Disclaimer: this article is not intended to provide financial investment advice or recommendations. Please do your own research or consult your financial advisor.