Continental Stock Transfer & Trust Company to Guarantee the Payment of Full Trust Value for 724,000 Shares

Rhea-AI Summary

Continental Stock Transfer & Trust Company has announced it will guarantee the payment of full trust value for 724,000 Class A common shares of Canna Global Acquisition Corp. (NASDAQ: CNGL) in the event of a redemption or liquidation. This action follows Liqueous LP's failure to return the shares, which were issued based on instructions from Canna Global that violated its Certificate of Incorporation. With no agreement from Liqueous LP to guarantee the payment, Continental has stepped in to ensure shareholders are compensated. This guarantee aims to stabilize shareholder confidence and mitigate potential adverse effects on the company's stock value.

Positive

• Continental Stock Transfer & Trust Company guarantees full trust value for 724,000 shares of CNGL.
• The action aims to stabilize shareholder confidence and mitigate potential adverse effects on stock.

Negative

• Liqueous LP failed to return 724,000 Class A common shares, violating CNGL's Certificate of Incorporation.

News Market Reaction

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On the day this news was published, CNGL declined NaN%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

NEW YORK, July 1, 2024 /PRNewswire/ -- Continental Stock Transfer &Trust Company, New York, NY, stock transfer agent and trustee for Canna Global Acquisition Corp. (NASDAQ: CNGL, CNGLU and CNGLW), announced today that, in light of the failure of Liqueous LP to return 724,000 shares of Canna Global Class A common shares issued to them based on instructions from Canna Global in contravention of its Certificate of Incorporation, and in the absence of an agreement by which Liqueous would provide a backstop guarantee insuring payment of full trust value for said 724,000 shares should they be presented for redemption, Continental as trustee has itself agreed to guarantee the payment of full trust value for the 724,000 Class A common shares of Canna Global in the event of a redemption or liquidation event.

 

 

View original content:https://www.prnewswire.com/news-releases/continental-stock-transfer--trust-company-to-guarantee-the-payment-of-full-trust-value-for-724-000-shares-302187050.html

SOURCE Continental Stock Transfer & Trust Company

FAQ

What is the significance of Continental Stock Transfer & Trust Company guaranteeing the payment of full trust value for CNGL shares?

Continental's guarantee aims to ensure that shareholders of CNGL are compensated for 724,000 Class A common shares in the event of a redemption or liquidation, stabilizing shareholder confidence.

Why did Continental Stock Transfer & Trust Company step in to guarantee the shares?

Continental stepped in after Liqueous LP failed to return the shares and did not provide a backstop guarantee, which violated CNGL's Certificate of Incorporation.

How many shares of CNGL are affected by this guarantee?

724,000 Class A common shares of CNGL are affected by the guarantee.

What happened with Liqueous LP regarding CNGL shares?

Liqueous LP failed to return 724,000 Class A common shares of CNGL issued based on instructions that violated CNGL's Certificate of Incorporation.