Atlantic Coastal Acquisition Corp. (NASDAQ: ACAH), the company set to merge with Essentium, Inc. to establish an IPO, has backed out of its deal. The mobility-focused special purpose acquisition corporation (SPAC) has terminated its agreement with the 3D printer manufacturer, with mutual agreement. Atlantic Coastal will, in turn, look for a different firm with which to merge.
Shahraab Ahmad, Chairman and Chief Executive Officer of Atlantic Coastal, said, “We wish Essentium well in their endeavors. Atlantic Coastal will focus its efforts on identifying transformational companies within the mobility space as we look toward maximizing value for shareholders through our next proposed business combination.”
Blake Teipel, Chief Executive Officer of Essentium, said, “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.”
While the deal is terminated, the businesses have come to an agreement that will grant Atlantic Coastal the right to receive future payments related to Essenitum’s financing or sale. A press release noted:
“In connection with the agreement to terminate, the parties 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 five percent of Essentium at an implied valuation equal to $500,000,000.”
The cancellation of the deal comes at a time in which SPAC mergers are starting to lose favor. Perhaps, it was this that led to the termination, as the two parties may not have been able to achieve as successful an IPO as would have been possible last year, when a number of 3D printing startups performed SPAC mergers.
We’ve reached out to Essentium for a quote and will update the article when we hear more. We can guess that a SPAC IPO is not out of the question. It is possible that, when market conditions change or Essentium finds another partner, a public listing could go through. Hopefully this doesn’t slow down the startup’s metal 3D printing technology by too much.
Subscribe to Our Email Newsletter
Stay up-to-date on all the latest news from the 3D printing industry and receive information and offers from third party vendors.
You May Also Like
Essentium Demos High-Speed 3D Printer at US Navy’s REPTX 2022
Essentium, a Texas-based additive manufacturing (AM) services provider and original equipment manufacturer (OEM), announced that the company successfully participated in the US Navy’s REPTX 2022 exercises, which were held August...
Naval Information Warfare Center Enlists MatterHackers to Test 3D Printing for Navy & Marines
MatterHackers, the Southern California-based additive manufacturing (AM) original equipment manufacturer (OEM) and retailer, announced that it has entered into a partnership with the Naval Information Warfare Center (NIWC) Pacific. Under...
US Navy Selects Cold Spray Metal 3D Printing for 2022 REPTEX
VRC Metal Systems, an original equipment manufacturer (OEM) based in South Dakota, announced that the company has been selected to participate in the 2022 REPTEX hosted by the U.S. Navy....
200 3D Printed Houses Planned by Alquist 3D and Black Buffalo
Alquist 3D is a Virginia-based additive construction (AC) company, specializing in printing affordable, cement-based residential homes. Earlier this year, we covered a story about Alquist printing the first owner-occupied residential...