Atlas Acquisition Holdings Corp. (AMEX: AXG) is a special purpose acquisition company, but not for very long. The company just announced that its board of directors has approved the dissolution of the company. In short, it is liquidating and returning the remaining assets to shareholders rather than pursuing any outside acquisitions or mergers. The proposed dissolution and liquidation plan, as well as a distribution plan, will be submitted to Atlas stockholders for approval.
What is unfortunate here is that the company had a merger planned originally. Earlier this month, it announced the termination of a proposed business combination with Koosharem, LLC. That was a California LC which did business as Select Staffing.
The reality is that this is a SPAC that will exist no more. You can bet money that shareholders will approve this plan. How many shareholders aren’t going to vote to take their money back today?
More importantly, how many shareholders are going to go say “Well, no, we insist that you go find a company to buy….”?
With a market cap of under $200 million, this is not a large SPAC nor is it a tiny one. But all the ‘present tense’ here used will soon be past tense. Atlas is done.
JON C. OGG
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