HomeGrill ManufacturersBlackstone IPO In Doubt as They Decline $200k for Extension

Blackstone IPO In Doubt as They Decline $200k for Extension

While the IPO of griddle maker Blackstone Products through a SPAC merger seemed in doubt with their most recent extension, now it’s really trending down. In just 6 days (August 31st, 2022) we’ll know if it will be dead or live to see another day.

On December 23, 2021 Ackrell SPAC Partners entered into a definitive business combination agreement with Blackstone, with the expectation of closing in the second quarter of 2022. Since then we have seen the SPAC market dry up as many SPAC IPOs flopped and the SEC has increased oversight.

Beyond the macro environment, we have seen the Blackstone deal get pushed back multiple times. That’s not a good signal that a deal will happen. With the latest extension at the end of June, Ackrell needs an additional $200k deposited into their trust account prior to the close of business on August 31, 2022 or the deal is dead.

It’s Ackrell’s position that the additional $200k was supposed to come from a loan provided by Blackstone. According to an SEC filing, yesterday Blackstone communicated to Ackrell that it’s their position that they have no legal obligation to do so. Now, Ackrell must secure $200k from another source by the deadline.

We don’t know if Ackrell will find another source for the money, but it’s not a good look for the deal to potentially fall apart over a disagreement over $200k. If Blackstone were to proceed with this deal, we should see their Q2 financial results any day now. If the results are anything like the rest of the sector, they probably aren’t great. We’re speculating of course, but this might be adding to their reluctance to proceed with lending the small sum of money for the deal.

We’ll keep watching if the trust account gets funded for the extension, but we’d guess it’s unlikely the deal will happen at this point.

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