Extension and issuance of a promissory note under a non-binding letter of intent
Alberton Acquisition Corporation (Nasdaq: ALAC, the "Company") today announced that in light of the upcoming special shareholder meeting to be held on April 23, 2020, if the shareholders approves to extend the date by which the Company must complete its initial business combination from April 27, 2020 to October 26, 2020 or such earlier date as determined by the board (the "Extension"), for aggregate public shares that are not redeemed by the public shareholders in connection with the Extension (collectively, the "Remaining Shares", each, a "Remaining Share"), for each monthly period, or portion thereof, that is needed by the Company to complete an initial business combination, it will deposit $60,000 per month during the Extension into the trust account as additional interest on the proceeds in the trust account Extension (the "Cash Contribution"). The deposit of first two months' contribution of $120,000 will be made within 7 business days of April 27, 2020 and deposit of each subsequent month's contribution of $60,000 will be made within 7 business days of 27th day of such month.
In addition to the Cash Contribution, at the earlier date (the "Issuance Date") of the consummation of its initial business combination and the expiry of the Extension, the Company will issue a dividend of one warrant to purchase one-half of one ordinary share for each Remaining Share. Each such warrant will be identical to the warrants included in the units sold in the Company's initial public offering (the "Dividend", collectively with the Cash Contribution, the "Revised Contribution"). The Revised Contribution replaces the $0.02 per public share per month (the "Original Contribution") that was previously disclosed in the Company's definitive proxy statement filed and mailed to shareholders in connection with the Extension on or about March 31, 2020.
Furthermore, on April 17,2020, the Company issued a promissory note (the "Note") to Qingdao Zhongxin Huirong Distressed Asset Disposal Co., Ltd, its registered assignee or successor in interest ("AMC Sino") in connection with a non-binding letter of intent ("LOI") to consummate a business combination with Zhongxin AmcAsset Limited ("AmcAsset"), an affiliate of AMC Sino. The principal amount of the note is $500,000 to be paid in installments according to the needs of the Company with the first payment of no less than $100,000 to be made within one business day after the execution of the Note.
Guan Wang, Chairman and CEO of the Company stated, "we are very excited about this important step forward in our search of suitable targets. AmcAsset has demonstrated strong interest and capability in cooperating with us to consummate a qualified business combination. We intend to deposit the proceeds of the Note into the trust account as the Cash Contribution for public shareholders and I personally will contribute to the Company as a loan for remaining balance, if any. We hope to come back soon with more updates on the progress of our work in this regard."
Notwithstanding the issuance of the Note and the non-binding LOI, the Company has not entered into any definitive agreements, for the purpose of acquiring, engaging in a share exchange, share reconstruction and amalgamation with, purchasing all or substantially all of the assets of, entering into contractual arrangements with, or engaging in any other similar business combination with one or more businesses or entities.
AmcAsset is a transnational distressed asset management company with foothold in the U.S. and China and undergoing global expansion. AmcAsset is a British Virgin Island company holding 100% equity interest of Quest Mark Capital Inc., a California corporation located in Los Angeles, and Qingdao Zhongbiao Distressed Asset Disposal Co., Ltd, a Chinese entity and an affiliate of AMC Sino.