Slam Corp Extends Lynk Global Merger Deadline Amid Investor Redemptions
Deal News | Dec 27, 2024 | EIN
Slam Corp, the SPAC founded by former MLB player Alex Rodriguez, has extended its merger deadline with Lynk Global, following a significant reduction in its cash reserves. Initially raising $575 million from its Nasdaq listing, Slam's trust account has now dwindled to $23 million due to successive investor redemptions. The extended deadline provides Lynk Global more time to negotiate regulatory hurdles, partly attributed to stringent US SPAC regulations introduced in 2024. The merger aims to raise at least $110 million for Lynk Global, with further plans for a $40 million Series B funding round. Lynk is contending with competition from industry leaders like SpaceX and AST SpaceMobile and plans to enhance its satellite constellation, currently supporting intermittent telecom services across various nations.
Sectors
- SPACs (Special Purpose Acquisition Companies)
- Satellite Telecommunications
- Investment and Finance
Geography
- United States – The article discusses companies and regulatory changes based in the United States, including expected stricter SPAC merger regulations.
- Solomon Islands, Cook Islands, Palau – These locations are mentioned as areas where Lynk Global's satellite services are being tested or deployed.
Industry
- SPACs (Special Purpose Acquisition Companies) – The article focuses on Slam Corp, a SPAC looking to merge with Lynk Global.
- Satellite Telecommunications – Lynk Global, the target company, operates in the satellite telecommunications industry, providing direct-to-smartphone satellite services.
- Investment and Finance – Slam Corp seeks to raise capital for Lynk Global through merger and additional funding rounds.
Financials
- $23 million – The current amount remaining in Slam Corp's trust account following investor redemptions.
- $575 million – Initial amount raised by Slam Corp upon its Nasdaq listing.
- $81 million – Refund to investors who redeemed shares from Slam Corp.
- $110 million – Amount Lynk Global aims to raise from the SPAC merger and other private sales.
- $40 million – Amount Lynk Global plans to raise through a Series B funding round.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Slam Corp | Bidding Company; Buyer | Company | Slam Corp is a SPAC founded by Alex Rodriguez seeking to merge with Lynk Global. |
| Lynk Global | Target Company | Company | Lynk Global is a satellite telecommunications company aiming to expand its satellite network. |
| Alex Rodriguez | Founder of Slam Corp | Person | Former MLB player who founded Slam Corp. |
| Dan Dooley | CEO of Lynk Global | Person | Newly promoted CEO of Lynk Global, providing leadership through the merger. |