NEW YORK, June 23, 2016 /PRNewswire/ -- Garnero
Group Acquisition Company (NASDAQ: GGAC) ("GGAC"), a public
investment vehicle formed for the purpose of effecting a merger,
acquisition or similar business combination, announced today that
its shareholders had approved an extension of time for GGAC to
complete an initial business combination to July 22, 2016.
In connection with the extension, holders of 12,373,127 of
GGAC's ordinary shares duly exercised their right to convert such
shares into a pro rata portion of the funds held in the trust
account established in connection with GGAC's initial public
offering. GGAC will distribute approximately $124,349,930 from the trust account to such
holders in payment of the aggregate conversion amount. As a result,
approximately $20,118,824 will remain
in the trust account. After the conversions, 6,229,686 GGAC
ordinary shares will remain outstanding (including 2,001,873 that
were issued in the Company's initial public offering). The
conversion will not affect the number of GGAC rights and warrants
outstanding. Accordingly, 14,375,000 GGAC rights, each of which
entitles the holder to automatically receive 1/10th of a
GGAC ordinary share upon consummation of a business combination,
and 14,375,000 GGAC warrants, each of which entitles the holder to
purchase 1/2 of a GGAC ordinary share commencing upon consummation
of a business combination, will remain outstanding.
The purpose of the extension is to allow GGAC additional time to
complete its previously disclosed business combination with Q1
Comercial de Roupas S.A. ("Grupo
Colombo" or "GC"), a leading apparel retailer in
Brazil. GGAC has called an
extraordinary general meeting to consider the proposed business
combination with Grupo Colombo and
certain related proposals. The extraordinary general meeting, which
was originally convened on April 25,
2016 but was adjourned to allow additional time for
Grupo Colombo to complete its
previously disclosed financial restructuring and for GGAC to
distribute additional information to its shareholders about the
transactions, is scheduled to reconvene on July 19, 2016. GGAC encourages all of its
shareholders to vote at the reconvened extraordinary general
meeting. If you have already provided voting instructions, your
shares will be voted in accordance with these instructions at the
reconvened extraordinary general meeting, unless you affirmatively
change your instructions as described in the proxy statement for
the extraordinary general meeting.
About Q1 Comercial de Roupas S.A.
Founded in 1917, Grupo Colombo is
one of Brazil's leading retailers
with a focus on menswear, with approximately 400 stores throughout
the country. GC has strong brand awareness for its clothing and is
known for its high quality products at competitive prices. Basic
pieces that don't go out of fashion which consumers wear day-to-day
for business or leisure are found throughout the year in its
stores. Beyond the basics, GC also has a premium line that brings
fresh ideas every season. For more information, please visit
www.grupocolombo.com.br/investors.
About Garnero Group Acquisition Company
GGAC was incorporated in the Cayman
Islands on February 11, 2014
as a blank check company whose objective is to acquire, through a
merger, share exchange, asset acquisition, stock purchase,
recapitalization, reorganization or other similar business
combination, one or more businesses or entities.
Additional Information
This press release is not a proxy statement or a solicitation of
proxies from the holders of GGAC's ordinary shares and does not
constitute an offer of any securities of GGAC for sale. Any
solicitation of proxies will be made only by the definitive proxy
statement that GGAC has mailed to all shareholders and filed with
the Securities and Exchange Commission, including any supplements
or amendments thereto.
GGAC, its directors and executive officers and EarlyBirdCapital,
Inc. may be deemed to be participants in the solicitation of
proxies for the extraordinary general meeting of GGAC shareholders
to be held to approve the proposed transaction. Shareholders are
advised to read GGAC's definitive proxy statement in connection
with the solicitation of proxies for the extraordinary general
meeting, including any supplements or amendments thereto, because
this proxy statement will contain important information. The
definitive proxy statement has been mailed to shareholders as of
March 28, 2016. Shareholders also may
obtain a copy of the proxy statement, including any supplements or
amendments thereto, without charge, by directing a request to:
EarlyBirdCapital, Inc., 366 Madison Avenue, 8th Floor, New York, NY 10017. The definitive proxy
statement, including any supplements or amendments thereto, also
can be obtained, without charge, at the Securities and Exchange
Commission's internet site (www.sec.gov).
Forward Looking Statements
This press release includes certain forward-looking statements,
including statements regarding future financial performance, future
growth and future acquisitions. These statements are based on
Grupo Colombo's and GGAC's
managements' current expectations or beliefs and are subject to
risk, uncertainty and changes in circumstances. Actual results may
vary materially from those expressed or implied by the statements
herein due to changes in economic, business, competitive and/or
regulatory factors, and other risks and uncertainties affecting the
operation of Grupo Colombo's
business. These risks, uncertainties and contingencies include:
business conditions; changing interpretations of GAAP; fluctuations
in customer demand; management of rapid growth; intensity of
competition from other providers of products and services; general
economic conditions; geopolitical events and regulatory changes;
the possibility that the transactions do not close, including due
to the failure to receive required shareholder approvals or the
failure of other closing conditions, such as receipt of necessary
governmental or regulatory approvals; and other factors set forth
in GGAC's filings with the Securities and Exchange Commission. The
information set forth herein should be read in light of such risks.
Neither GGAC nor Grupo Colombo is
under any obligation to, and expressly disclaims any obligation to,
update or alter its forward-looking statements, whether as a result
of new information, future events, changes in assumptions or
otherwise.
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SOURCE Garnero Group Acquisition Company
