Atlantic Coastal Acquisition Corp. (NASDAQ: ACAH) (“Atlantic Coastal”), a special purpose acquisition corporation focused on the future of mobility, has terminated its previously announced business combination agreement with Essentium, Inc., a leading innovator of industrial additive manufacturing solutions, by mutual agreement of all relevant parties. As a result, Atlantic Coastal will seek an alternative business combination.
Blake Teipel, Chief Executive Officer of Essentium, said, “We appreciate the Atlantic Coastal team’s support and guidance throughout this process, and we are disappointed that market conditions prevented the parties from consummating this agreement. We will continue to leverage the strength of our additive manufacturing technology and product system validated by the Department of Defense to continue to advance additive manufacturing globally.”
In connection with the agreement to terminate, the parties have agreed that Atlantic Coastal will be granted the right to receive payments in the future, subject to certain circumstances relating to the consummation of future financing transactions by Essentium, a sale of Essentium, or Atlantic Coastal’s inability to consummate a business combination transaction.
The parties have also agreed that in the event a sale of Essentium does not occur on or prior to March 8, 2023, Essentium shall deliver a warrant to Atlantic Coastal providing for the ability of Atlantic Coastal (or its successors or assigns) to acquire a stake equal to five percent of Essentium at an implied valuation equal to $500,000,000.
Shahraab Ahmad, Chairman and Chief Executive Officer of Atlantic Coastal, said, “We wish Essentium well in their endeavors. Atlantic Coastal will focus its efforts on identifying transformational companies within the mobility space as we look toward maximizing value for shareholders through our next proposed business combination.”
Based in Austin, TX, Essentium manufactures and delivers industrial material extrusion 3D printers, materials, software, and services, enabling many of the world’s top manufacturers to bridge the gap between 3D printing and machining and embrace the future of advanced manufacturing. The company is AS9100D certified and ITAR registered. Shortly before the termination of the SPAC merger deal, a report had emerged on LinkedIn of widespread layoffs at Essentium, although the exact extension of these layoffs was not confirmed by the company and operations are continuing. Representatives from the company also declined to comment on the exact reasons for the SPAC merger termination.