Why they may not get enough votes on the 23rd?
Well there may be a lot of redemptions, they also need around 60% to 80% shareholders to approve (in this case though should be 60%). See the link below for those who are new to SPACS.
https://www.finra.org/rules-guidance/notices/08-54SZZL may feel that they may not get enough votes as many may choose to Sell on market at the moment which is trading at a premium or if they redeem they would get $11.03 instead - stated in the proxy form. Meaning if a shareholders choses to redeem now they will get
A CONFIRMED 10.3% return IN CASH, rather than holding until completion in an uncertain market and have their $10/share investment potentially go down upon merger completion.
clearly stated in there:
"This means that public stockholders who hold shares of Sizzle Common Stock on or before January 19, 2024 (two (2) business days before the special meeting) will be eligible to elect to have their shares of Sizzle Common Stock redeemed for cash in connection with the special meeting, whether or not they are holders as of the Record Date, and whether or not such shares are voted at the special meeting."Keep in mind as well an absent vote/no vote is considered
AGAINST, all abseentee votes for other proposals are not counted towards quorum.
"a Sizzle stockholder’s failure to vote by proxy or to vote in person at the Special Meeting or an abstention will have the same effect as a vote “AGAINST” the Business Combination Proposal"Finally, it is also stated clearly in the statement that just in case they can't get enough votes for the combination above, then a simple majority to extend this meeting, hence the
PRE14A.
"The Adjournment Proposal Sizzle is proposing that its stockholders approve and adopt a proposal to adjourn the Special Meeting to a later date or dates, if necessary, to permit further solicitation and vote of proxies if Sizzle is unable to consummate the Business Combination for any reason."many SPAC deals have fallen through at the last minute due to redemptions or absent votes.
In this case with the extension if they are not able to get the required amount of votes then can extend, those that redeem their shares would technically be voting NO and have to give it up, so a next meeting can be convened for it to go through.
