What happened to Blockchain Moon Acquisition Corp (BMAC)?

04/22/2023 02:06 • NFT Newsflash • 145 views

On April 22nd, Blockchain Moon Acquisition Corp. (BMAC) announced today that due to its inability to complete the initial business merger within the period required by its revised and restated company registration certificate, it intends to dissolve and liquidate in accordance with its articles of association, and will redeem all ordinary shares issued in its IPO. The redemption price per share is approximately $10.49.

Blank check company BMAC announces liquidation and will redeem all common shares issued in its IPO

Blockchain Moon Acquisition Corp. (BMAC) recently made an announcement that startled investors and the cryptocurrency community. The company stated that due to the inability to complete the initial business merger within the period required by its revised and restated company registration certificate, it intends to dissolve and liquidate in accordance with its articles of association, and will redeem all ordinary shares issued in its IPO. The redemption price per share is approximately $10.49.

Understanding Blockchain Moon Acquisition Corp (BMAC)

Blockchain Moon Acquisition Corp. (BMAC) is a special purpose acquisition company (SPAC) that was formed with the aim of merging with a blockchain or cryptocurrency-related business. The company went public through an initial public offering (IPO), offering 20 million units consisting of shares and warrants. Each unit was priced at $10.

The Delayed Initial Business Merger

In December 2020, BMAC announced a definitive merger agreement with BTA Protocol Limited, a private blockchain ecosystem that facilitates peer-to-peer transactions. The merger was expected to be completed by April 22nd, 2021, within the period required by its revised and restated company registration certificate.
However, BMAC announced on April 22nd, 2021, that it was unable to complete the merger within that period. The company cited regulatory hurdles and complexities, as well as the evolving legal and regulatory environment around cryptocurrencies and blockchain, as reasons for the delay.

Dissolution and Liquidation

As a result of its inability to complete the initial business merger, BMAC has decided to dissolve and liquidate in accordance with its articles of association. This means that the company will be winding down its operations, selling off its assets, and distributing the proceeds to its shareholders.

Redemption of Ordinary Shares

BMAC will be redeeming all ordinary shares issued in its IPO, at a price of approximately $10.49 per share. This means that shareholders who bought shares in the company will be able to sell them back to BMAC at this price.

Conclusion

The news of BMAC’s dissolution and liquidation is a blow to investors who had high hopes for the company’s future in the blockchain and cryptocurrency industry. However, the decision to wind down operations and redeem shares is a responsible one, given the company’s inability to complete the initial business merger within the required period. It remains to be seen what the future holds for BMAC and its shareholders, but the announcement serves as a reminder of the inherent uncertainties and risks associated with investing in SPACs and the crypto space.

FAQs

1. What is Blockchain Moon Acquisition Corp (BMAC)?
BMAC is a special purpose acquisition company (SPAC) that was formed with the aim of merging with a blockchain or cryptocurrency-related business.
2. What was the company’s plan?
The company’s plan was to merge with a blockchain or cryptocurrency-related business.
3. Why is the company dissolving and liquidating?
The company is dissolving and liquidating because it was unable to complete the initial business merger within the period required by its revised and restated company registration certificate.

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