AULT DISRUPTIVE TECHS Stock Price, News & Analysis

Ault Disruptive Technologies Corp (ADRT) was a Special Purpose Acquisition Company (SPAC) that traded on NYSE American. The company was formed to raise capital through an initial public offering with the purpose of acquiring or merging with an existing operating company. SPACs like ADRT operate as blank-check companies, meaning they have no commercial operations at the time of their IPO and exist solely to identify and complete a business combination with a target company.

SPAC Structure and Purpose

As a SPAC, Ault Disruptive Technologies Corp raised funds from public investors through its IPO, holding those funds in a trust account while its management team searched for a suitable acquisition target. SPACs typically have a limited timeframe, usually 18-24 months, to identify and complete a merger or acquisition. If no deal is consummated within this period, the SPAC must return the funds held in trust to its shareholders through a redemption process.

Business Combination Outcome

Ault Disruptive Technologies Corp announced that it would redeem its public shares and would not consummate an initial business combination. This outcome means the SPAC was unable to identify or finalize an acquisition with a target company within its permitted timeframe. When a SPAC fails to complete a business combination, shareholders who hold public shares are entitled to receive their pro-rata portion of the trust account funds.

Affiliation with Ault Alliance

The company operated under the Ault umbrella of companies, which includes various technology and disruptive innovation ventures. Ault Disruptive Technologies was positioned to potentially acquire companies in the technology sector or other high-growth industries, though no such acquisition was ultimately completed.

Investor Considerations

Investors who held ADRT shares at the time of redemption would have received a return of their invested capital from the trust account, minus any permitted expenses. The redemption process typically marks the end of a SPAC's public market existence, as the company winds down its operations after failing to find a suitable merger partner.