Evergreen Corporation (EVGR) Cancels Vote, Will Auto-Extend

Evergreen (NASDAQ:EVGR) announced this morning that it was canceling a special meeting to be held 11 am ET today to extend its deadline and will instead use its ability to automatically extend this date by three months.

This moves the SPAC’s transaction deadline from today to August 11 and it will deposit $1.15 million into its trust in exchange. Shareholders that sought to redeem their shares will have them returned for now.

In the short term, this is actually a better deal for shareholders. Evergreen’s extension proposal on the ballot would have allowed it to extend its deadline by up to 12 months in one-month increments in exchange for contributions of the lesser of $160,000 or $0.055 per share per month.

Instead, this three-month extension move that was written into its initial prospectus, equates to contributions of $383,333 per month, or $0.10 per share. This is the last auto-extension that Evergreen has in its pocket, however, so it will likely have to go back to investors for more time in August.

Evergreen raised $116.7 million in its February 2022 IPO and has not yet announced a business combination with a target company. It initially sought to combine with a Southeast Asian company valued at $100 million to $500 million in AI, fintech or other sectors within the changing digital economy.