Essentium, Inc, Austin, Texas, USA, has reported that its previously announced business combination agreement with Atlantic Coastal Acquisition Corp has been terminated by mutual agreement of all relevant parties. As a result, Atlantic Coastal will seek an alternative business combination.
“We wish Essentium well in their endeavours,” stated Shahraab Ahmad, chairman and Chief Executive Officer of Atlantic Coastal. “Atlantic Coastal will focus its efforts on identifying transformational companies within the mobility space as we look toward maximising value for shareholders through our next proposed business combination.”
In connection with the agreement to terminate, both companies have agreed that Atlantic Coastal will be granted the right to receive payments in the future, subject to certain circumstances relating to the consummation of future financing transactions by Essentium, a sale of Essentium, or Atlantic Coastal’s inability to consummate a business combination transaction. The parties have also agreed that in the event a sale of Essentium does not occur on or prior to March 8, 2023, Essentium shall deliver a warrant to Atlantic Coastal providing for the ability of Atlantic Coastal (or its successors or assigns) to acquire a stake equal to 5% of Essentium at an implied valuation equal to $500 million.
Blake Teipel, Chief Executive Officer of Essentium, commented, “We appreciate the Atlantic Coastal team’s support and guidance throughout this process, and we are disappointed that market conditions prevented the parties from consummating this agreement. We will continue to leverage the strength of our Additive Manufacturing technology and product system validated by the Department of Defense to continue to advance additive manufacturing globally.”