SPAC Death: Atlas Acquistion Winding Down (AXG)

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By Douglas A. McIntyre Published

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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

Contact [email protected] for any questions or corrections.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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