- Cinaport Acquisition Corp. III (CAC.P) has entered into a settlement agreement with Coinberry Limited
- This is in respect of the company’s previously announced legal proceedings against Coinberry in the Ontario Superior Court of Justice
- Coinberry agreed to release 3,100,000 common shares of WonderFi to Cinaport in exchange for a full release by Cinaport in connection with the legal action
- Cinaport Acquisition is a capital pool company
- Cinaport Acquisition Corp. III (CAC.P) is up 67 per cent on the day, trading at $0.10 per share at 1:06 PM ET
Cinaport Acquisition Corp. III (CAC.P) has entered into a settlement agreement with Coinberry Limited.
The agreement is in respect to the company’s previously announced legal proceedings against Coinberry in the Ontario Superior Court of Justice.
Coinberry entered into a business combination agreement with WonderFi Technologies Inc (NEO:WNDR) and a wholly-owned subsidiary of WonderFi.
In accordance with the terms of the settlement agreement, Coinberry agreed to issue 3,100,000 common shares of WonderFi to the company upon closing of the WonderFi transaction in exchange for a full release by Cinaport in connection with the legal action.
It is agreed by the parties that the settlement shares shall be free from regulatory resale restrictions under applicable securities laws and applicable rules of the NEO Exchange but shall be subject to a three-month contractual lock-up period with 1/4 of the settlement shares to be issued as free-trading shares upon closing and 1/4 of the settlement shares to be released from the lock-up on the last calendar day of each of the three months following the closing.
The settlement set out in the settlement agreement is conditional on the closing of the WonderFi transaction.
The closing of the WonderFi transaction is conditional on, among other things, receipt of approval from Coinberry’s shareholders and requisite regulatory approvals.
In the event that the closing does not occur, the settlement agreement shall be deemed to terminate and shall cease to be of any force and effect.
The settlement agreement requires Coinberry to cause the settlement shares to be issued by WonderFi to the company upon closing the WonderFi transaction.
The company is not a party to the WonderFi transaction and the WonderFi transaction does not constitute a proposed qualifying transaction of the company in line with Policy 2.4 – Capital Pool Companies of the Exchange (CPC Policy).
The company is continuing its efforts to identify a suitable target in order to complete a qualifying transaction in accordance with the CPC Policy. Cinaport Acquisition is a capital pool company.
Cinaport Acquisition Corp. III (CAC.P) is up 67 per cent on the day, trading at $0.10 per share at 1:06 PM ET.