North Mountain Merger Corp. (NASDAQ:NMMC) announced in a press release this afternoon that it will not be able to complete a business combination and will instead liquidate its trust.
The SPAC, which had 24 months on its clock to complete a deal, will cease trading on September 30 and shareholders are expected to receive their pro rata share of the trust estimated at $10.00 per share. The balance of NMMC’s trust account as of June 30, 2022 was approximately $132,443,616, which includes $193,616 in interest and dividend income, excess of cash over $132,250,000, the funds deposited into the trust account.
In accordance with the trust agreement, North Mountain expects to retain up to $100,000 of the interest and dividend income from the trust account to pay dissolution expenses. Accordingly, there is expected to be a total of $132,343,616 available for redemption of the 13,225,000 public shares outstanding.
North Mountain’s liquidation comes less than a month after it mutually terminated its deal with commerce solutions provider Corcentric on August 29. Similar to most other SPACs, North Mountain felt the pressure of deteriorating market conditions resulting in the termination of the deal. The $1.2 billion transaction was initially announced on December 10, 2021.
North Mountain marks the 26th SPAC to liquidate this year. It raised $132.25 million at IPO in September 2020 and initially aimed to combine with a fintech company that has a defensible market position and a capable management team.