NEW YORK - RMG Acquisition Corp. III, a special purpose acquisition company, has announced its plans to dissolve and liquidate by April 22, 2024, due to its inability to finalize a business combination within the designated timeframe. This decision will result in the redemption of all outstanding Class A ordinary shares at an estimated price of $10.00 per share.
The redemption process is set to begin shortly after today, with shareholders expected to receive their share of the trust account proceeds within ten business days. Shareholders of record will need to deliver their shares to the Company's transfer agent, Continental Stock Transfer & Trust Company, to receive their portion. However, beneficial owners with shares held in street name will not require any action to obtain the redemption amount.
The Company's sponsor has waived its redemption rights for its Class B ordinary shares and a portion of its Class A ordinary shares converted from Class B shares on December 26, 2023. It is important to note that the Company's warrants will not be redeemed and will expire without value.
In accordance with the liquidation, RMG Acquisition Corp. III expects that its securities will be delisted from Nasdaq following the filing of a Form 25 with the United States Securities and Exchange Commission (SEC). The Company also anticipates filing a Form 15 with the SEC to terminate the registration of its securities under the Securities Exchange Act of 1934.
This announcement, based on a press release statement, marks the end of the company's efforts to secure an initial business combination as outlined in its amended memorandum and articles of association. RMG Acquisition Corp. III has advised that forward-looking statements in the press release are subject to numerous conditions and uncertainties, and actual outcomes may differ from current expectations. The company has no obligation to update these statements following this release.
InvestingPro Insights
In light of RMG Acquisition Corp. III's (RMGC) announcement to dissolve and liquidate, current and prospective investors might benefit from considering some key metrics and insights from InvestingPro. With a market capitalization of $126.98 million, the company's financial position reflects challenges, as indicated by an adjusted price-to-earnings (P/E) ratio over the last twelve months as of Q3 2023 standing at -15.65, signaling that the company has been operating at a loss. Moreover, the company's operating income during the same period was in the negative, at approximately $8.77 million, underscoring the financial difficulties leading up to its decision to liquidate.
Two InvestingPro Tips that are particularly relevant to RMG Acquisition Corp. III's situation include the fact that the stock is currently trading near its 52-week low, which may influence the redemption value perception among shareholders. Additionally, the company's short-term obligations exceeding its liquid assets could have contributed to the liquidity concerns and the ultimate decision to dissolve the company. These insights are crucial for understanding the company's recent performance and its impact on the liquidation process.
Investors seeking more detailed analysis and additional InvestingPro Tips can find them at Investing.com. There are a total of 6 additional tips available, which could provide deeper insights into RMGC's financial health and future prospects. To access these insights, users can take advantage of a special offer by using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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