Shares of Big Rock Partners Acquisition Corp. (BRPA) were gaining in today’s pre-market trading session amid the spread of the news that BRPA has clarified the stockholder redemption procedure in connection with the extension amendment proposal in the Big Rock’s special meeting of stockholders. BRPA stock price saw a push of3.42% to reach at $37.50 a share in today’s pre-market at the time of this writing.BRPA faced a downtrend in the previous trading session and closed with an 11.52% drop. Let’s discuss the current scenario in detail.
Extension Amendment Proposal:
Big Rock Special meeting of stockholders is related to the approval of the amendment in connection with BRPA’s amended and restated certificate of incorporation for extension of date from April 23, 2021, to May 24, 2021, so that Big Rock may consummate its initial business combination.
If the amendment gets approval, then BRPA shareholders of its common stock of the initial public offering would be able to opt for the option of conversion of their public shares into pro-rata portion of Big Rock’s trust account funds. As of March 31, 2021, the pro-rata per share portion was approximately $10.86 and BRPA’s common stock was $35.42.Selling of public shares in the open market will result in $24.57 less receiving if the price remains the same through the meeting date.
What do stockholders need to do?
Stockholders have to physically tender their stock certificates to Big Rock’s agent, Continental Stock Transfer & Trust Company or stockholders can deliver their shares to the transfer agent by electronic means using the depository trust company’s DWAC system. This would be only applicable until two business days before the voting of the extension amendment proposal.
Management of BRPA stock has thanked its shareholders for support and patience in this process. Moreover, the shareholders are encouraged to cast their vote as soon as possible to ensure their representation at a special meeting. Management also cleared that the stockholders who don’t wish to convert their shares are not required to do any additional process to remain invested in BRPA stock.
BRPA stock seems to be gaining after facing the downtrend in the previous trading session.BRPA stock happened to be red at one time in the pre-market session today but then again it got the rising momentum. Now investors are eyeing the decision related to the extension amendment proposal which would further clarify things in the future.