TKB Critical Technologies 1 (USCT) Terminates Wejo Deal, Adjourns Extension Vote

TKB Critical Technologies 1 (NASDAQ:USCT) announced a series of moves this morning that include terminating their combination with Wejo (OTC:WEJOQ), selling sponsor economics and postponing today’s extension meeting to 11:30 am ET June 28.

It comes as little surprise that the SPAC terminated its combination with Wejo, which completed an earlier SPAC deal with Virtuoso in 2021, but filed for insolvency in the UK last month. In recent months, it had been de-listed from the Nasdaq and its market cap had fallen below $2 million as of June 23.

TKB I has also agreed to sell much of its sponsor economics to Roth Capital Partners and Craig-Hallum Capital Group for an aggregate purchase price of just $1. These buyers are to receive 4,312,500 total shares including 75,000 promote shares and 8,062,500 of TKB I’s 10,750,000 private placement warrants.

In connection with the transfer, the SPAC’s full management team is set to resign. Roth and Craig-Hallum are to contribute $31,000 to the sponsor to pay outstanding invoices, $300,000 for certain liabilities and the incoming buyers are to be responsible for contributing the lesser of $60,000 or $0.03 per share for TKB I’s upcoming extension vote.

The SPAC has already postponed this vote, which would have taken place today, and TKB I’s redemption deadline has been extended to 5 pm ET today should any shareholder wish to reverse their decisions.

The extension proposal would allow TKB I to extend its deadline up to 16 times monthly up to October 29, 2024. So, an approval would give a new team a wide timeframe to execute a new deal.