Chain Bridge I Enters Non-Redemption Agreements with Backstop Investors

Chain Bridge I (NASDAQ:CBRGU) recently disclosed in an 8-K filing with the Securities and Exchange Commission that on November 11, 2024, it entered into non-redemption agreements (the “Non-Redemption Agreements”) with certain investors identified as Backstop Investors. The agreements entail the reversal or rescission of previous redemption requests for up to 429,180 Class A ordinary shares of the company.

These redemption requests were initially made in connection with the company’s upcoming extraordinary general meeting of shareholders planned for November 14, 2024. The key proposal to be voted on at the meeting is the extension, through a special resolution, of the date by which Chain Bridge I must consummate a De-Spac Transaction.

As part of these agreements, the Backstop Investors have committed to holding, rather than redeeming, up to 128,753 shares of the Class A Ordinary Shares upon the Closing of a De-Spac Transaction. In return, upon completion of the company’s initial business combination, each Backstop Investor will receive a cash payment proportional to the sum of their Backstop Investor Shares.

Furthermore, it was outlined that the Backstop Investors have plans to acquire a collective total of 321,984 Class A Ordinary Shares on the open market, below a defined Redemption Price, and have agreed not to redeem or vote in favor of the Amendment Proposal with these shares.

While the Non-Redemption Agreements do not ensure the approval of the Amendment Proposal at the upcoming Meeting, they are expected to bolster the funds remaining in Chain Bridge I’s trust account following the event. The filing also hinted at the potential for similar non-redemption agreements with other investors or shareholders in the future.

It’s noteworthy that Chain Bridge I has documented these agreements in detail and disclosed them in the 8-K filing to provide clarity to shareholders and the investing public. For a comprehensive understanding of the Non-Redemption Agreements, it is advised to refer to the original filing and the accompanying Exhibit 10.1.

Investors are encouraged to keep abreast of further developments related to Chain Bridge I by referring to the Proxy Statement for the Meeting filed with the SEC on October 10, 2024, and subsequent filings available on the SEC’s website.

The company noted the potential risks and uncertainties associated with these agreements in its filing, urging caution and careful consideration when assessing the forward-looking statements contained within.

Furthermore, Chain Bridge I acknowledged the impending Nasdaq Notice regarding the suspension and delisting of the company’s Class A Shares and Units and indicated its application to have its securities traded on the OTCQB in the interim while aiming to list with Nasdaq Capital Markets post the Phtytanix Business Combination.

The company assured shareholders and investors that despite any potential delisting implications, the consummation of the Phtytanix Business Combination is a priority, with plans to list securities on the Nasdaq Capital Markets upon successfully closing the deal.

This 8-K filing serves to keep stakeholders informed about the ongoing developments and strategic decisions undertaken by Chain Bridge I as it navigates critical milestones in its operations.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Chain Bridge I’s 8K filing here.

About Chain Bridge I

Chain Bridge I does not have significant operations. The company intends to effect a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses. It also intends to focus on partnering with a technology company that will advance the United States national security and intelligence interests.