Atlantic Coastal SPAC terminates IPO Deal with Essentium

1 Mins read
Atlantic Coastal SPAC scraps IPO deal with Essentium
Above: Atlantic Coastal SPAC scraps IPO deal with Essentium/Image Source: Essentium

Atlantic Coastal Acquisition Corporation, the blank-check firm, that had entered into a definitive business merger agreement with Essentium, Inc., a leading innovator of industrial additive manufacturing solutions, announced that the IPO deal with Essentium has been mutually terminated citing troubles for the 3D printing sector.

The merger deal, announced in December, would have valued the combined entity at $974 million and fetched $346 million in cash for Texas-based Essentium.

SPAC terminates IPO Deal with Essentium

Atlantic Coastal and the 3D printing solutions provider did not give a reason for terminating the IPO deal with Essentium. As part of their termination agreement, the parties agreed that if Essentium is not sold on or before March 8, 2023, Essentium will deliver a warrant to Atlantic Coastal to acquire a stake equal to 5% of Essentium at an implied valuation of $500M.

“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.”

– Shahraab Ahmad, Chairman and Chief Executive Officer of Atlantic Coastal

The termination of the deal comes at a time when there is a drop in favour for SPAC mergers. The market conditions have made SPAC deals less popular. This can be one of the major reasons for the cancellation of the deal.

“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.”

– Blake Teipel, Chief Executive Officer of Essentium

The decision gives the special purpose acquisition company (SPAC) until March of next year to find another company to take public, with CEO Shahraab Ahmad stating that the SPAC will look to merge with “transformational companies” in the mobility space.

About Manufactur3D Magazine: Manufactur3D is an online magazine on 3D Printing. Visit our Global News page for more updates on Global 3D Printing News. To stay up-to-date about the latest happenings in the 3D printing world, like us on Facebook or follow us on LinkedIn and Twitter.

1999 posts

About author
Manufactur3D is an Indian Online 3D Printing Media Platform that reports on the latest news, insights and analysis from the Indian and the Global 3D Printing Industry.
Related posts

Nexa3D announces Strategic Acquisition of Essentium

2 Mins read
Nexa3D announced its intent for the acquisition of Essentium. This move is expected to reshape the 3D printing landscape by combining Nexa3D’s

New York bill proposes a Criminal background check to buy a 3D Printer

3 Mins read
A new bill in the New York Senate proposes a criminal background check to buy a 3D printer. Step taken to curb 3D Printed guns or ghost guns

SPEE3D Participate in U.S. Marines Corps Training Exercise; The only AM company to do so

2 Mins read
SPEE3D revealed that it successfully participated in the U.S. Marines Corps Integrated Training Exercise (ITX) 4-23.

Leave a Reply


Essentium is ‘Going Public’ through SPAC Deal in 2022