Novo Tellus says it will not de-Spac, citing market conditions

NOVO Tellus Alpha Acquisition (NTAA) will not conclude a business combination after “careful consideration and thorough evaluation of potential targets”, and taking into consideration current market conditions.

The special purpose acquisition company (Spac) made the announcement on Thursday (Jan 11), ahead of the Jan 26 deadline or 24 months from the company’s listing date on Jan 27, 2022.

NTAA said that it will announce details of the process to redeem its issued outstanding Class A shares in due course.

There will be no redemption rights with respect to founder shares, nor redemption rights or liquidation distributions that would come with the company’s warrants, including private placement warrants.

NTAA is backed by industrial technology buyout fund, Novo Tellus Capital Partners. 

The counter ended Wednesday flat at S$4.93.

Singapore-listed Spacs including NTAA have two years to announce their potential business combination, which is also known as a de-Spac transaction. If the Spac is unable to find a suitable acquisition target, it is required to dissolve and return the funds to investors. 

In late December 2023, Tikehau Capital’s Pegasus Asia also announced it would not de-Spac “after considering macroeconomic and market conditions”.

Both NTAA and Pegasus Asia’s announcements confirmed an earlier media report that these two Singapore Exchange-listed Spacs were to be dissolved.

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This also makes Vertex Technology Acquisition Corporation the sole company among its peers to conclude a de-Spac transaction following its merger with livestreaming platform 17Live on Dec 8, 2023.