SINGAPORE, Nov. 17, 2023 (GLOBE NEWSWIRE) -- Fat Projects Acquisition Corp (NASDAQ:FATPU, FATP, FATPW)) ("FATP" or the "Company"), a special purpose acquisition company, announced that it has terminated its Business Combination Agreement with Avanseus Holdings Pte. Ltd. ("Avanseus") and that it did not extend the deadline to complete its initial business combination to November 15, 2023 therefore it will dissolve and liquidate. Four of its non-management directors and its president and chief operating officer have resigned.
Termination of Business Combination Agreement with Avanseus
On Monday, November 13, 2023, FATP notified Avanseus that FATP was terminating the Business Combination Agreement dated August 26, 2023, as amended (the "Business Combination Agreement"), by and between FATP and Avanseus and delivered a formal notice of termination the following day. FATP terminated the Business Combination Agreement because FATP determined that a material adverse effect on Avanseus' financial condition and results of operations had occurred as a result of steady material deterioration in Avanseus' business and revenues since the execution of the Business Combination Agreement and because Avanseus' most recent update to FATP indicated to FATP that Avanseus was unlikely to be able to materially reverse the deterioration in the foreseeable future. The Business Combination Agreement had contemplated the acquisition by FATP of all of Avanseus' outstanding ordinary shares in exchange for newly-issued FATP Class A ordinary shares in a transaction registered with the U.S. Securities and Exchange Commission on Form S-4 making Avanseus a wholly-owned subsidiary of FATP.
Dissolution and Liquidation of the Company
The Company's Charter requires the Company to complete its initial business combination by November 15, 2023 unless the Company obtains up to two remaining 1-month extensions of that deadline to January 15, 2024 by depositing on or prior to the then-current deadline $24,279.65 into the Company's trust account with Continental Stock Transfer and Trust Company (the "Trust Account") for each 1-month extension. The Company did not make the required deposit by November 15, 2023 for the extension of the deadline to December 15, 2023; therefore, the Company's Charter required the Company to, and the Company will:
- cease all operations as of November 15, 2023 except for the purpose of winding up the Company's business;
- as promptly as reasonably possible but not more than ten business days thereafter, subject to lawfully available funds therefor, redeem the Company's publicly held Class A ordinary shares (the "Public Shares"), at a per-share price, payable in cash, equal to ...