Mudrick Capital SPAC Winds Down After Failed Merger Attempts

Mudrick Capital Acquisition Corp. II is dissolving after failing to find a merger. Shareholders will get ~$10.16 per share, but warrants expire worthless. The SPAC's deals with Topps and Blue Nile collapsed.

Mudrick Capital Acquisition Corporation II is ceasing operations and liquidating its trust. The special purpose acquisition company (SPAC) has initiated a formal dissolution process after failing to secure a merger target within its mandated timeframe. This action will result in shareholders receiving a return of capital and the company's eventual delisting from public markets.

Shareholder Returns and Market Exit

As part of the wind-down, the company will redeem all outstanding Class A common shares that were issued in its initial public offering. Trading of the shares on the Nasdaq exchange was halted prior to the market open, with the securities subsequently voided. The company anticipates a redemption price of approximately $10.16 per share, with distributions expected to be completed in the coming days.

However, holders of warrants will receive no compensation, as these instruments will expire worthless according to their terms. Following the completion of the redemption process, Mudrick Capital II will file for deregistration with the U.S. Securities and Exchange Commission (SEC). The company will then terminate all ongoing business activities not directly related to its liquidation.

A Series of Unsuccessful Deal Negotiations

The decision to liquidate stems from an unsuccessful search for a suitable business combination. The SPAC recently saw two separate merger agreements collapse. First, a planned deal with trading card manufacturer Topps was terminated. Shortly thereafter, a proposed merger with online jeweler Blue Nile also fell apart.

With the deadline stipulated in its corporate charter passing without a completed transaction, the company's management was legally obligated to pursue liquidation. No further extension for seeking a partner was possible under the governing conditions, leaving dissolution as the only remaining path forward.