Business Context and Reporting Period
This Form 8-K is filed by Leisure Acquisition Corp. (not Ensysce Biosciences, Inc., as indicated in the metadata) for the reporting date of March 26, 2020. The company is a Special Purpose Acquisition Company (SPAC) incorporated in Delaware, trading on the Nasdaq under the symbols LACQ, LACQW, and LACQU. The filing reports the results of a special meeting of stockholders held on this date.
Key Financial Metrics and Voting Results
- Share Redemptions: Holders of 16,837,678 shares redeemed their shares for cash.
- Redemption Amount: Approximately $176.3 million was paid out to redeeming shareholders.
- Remaining Trust Account: Approximately $21.3 million remains in the Trust Account after redemptions.
- Voting Results (Proposal 1 - Extension Amendment): 18,632,551 votes FOR; 10 votes AGAINST; 0 ABSTAIN.
- Voting Results (Proposal 2 - Trust Amendment): 18,487,235 votes FOR; 145,326 votes AGAINST; 0 ABSTAIN.
Material Changes
The primary material change is the successful extension of the deadline to consummate a business combination. The deadline has been extended from April 5, 2020 to June 30, 2020. Consequently, the date to commence liquidating the Trust Account in the event of no business combination has also been extended to June 30, 2020. This extension was accompanied by a significant reduction in the company's cash reserves held in trust due to the high volume of share redemptions.
Outlook and Management Commentary
Management secured shareholder approval to extend the search for a target business combination by approximately two and a half months. The filing does not provide specific guidance on future revenue, profit, or operational milestones, as the company is in the pre-business combination phase. The significant redemption activity suggests a portion of the shareholder base opted to exit rather than wait for the extended period.
Investor Verification Checklist
- Verify the discrepancy between the metadata company name (Ensysce Biosciences, Inc.) and the actual registrant (Leisure Acquisition Corp.).
- Confirm the remaining liquidity of $21.3 million is sufficient to cover the company's ongoing operating expenses until the new June 30, 2020 deadline.
- Review the terms of the Extension Amendment to understand any additional conditions or fees associated with the extension.
- Monitor subsequent filings for updates on the status of the business combination search given the reduced capital base.