Alternative Asset Management Acquisition Corp. and Great American Group, LLC Announce Revised Acquisition Terms
09 Juli 2009 - 1:50AM
PR Newswire (US)
NEW YORK, and WOODLAND HILLS, Calif., July 8 /PRNewswire-FirstCall/
-- Alternative Asset Management Acquisition Corp. ("AAMAC") (NYSE
Amex: AMV) and privately-held Great American Group, LLC ("Great
American") today jointly announced that they have agreed to amend
the terms of the Agreement and Plan of Reorganization (the
"Agreement") originally entered into May 14, 2009 and thereafter
amended on May 29, 2009, pursuant to which Great American will be
acquired by Great American Group, Inc., a newly-formed Delaware
corporation and wholly-owned subsidiary of AAMAC ("GA"). As set
forth in the amended Agreement, upon consummation of the
Acquisition, each share of AAMAC common stock will be exchanged for
1.23 shares of GA (the "Exchange") rather than a ratio of 1:1 as
originally announced. In addition, the amount of cash consideration
payable to the members of Great American has been decreased from
$120 million to $60 million. Similarly, the stock consideration
payable to the members of Great American has been reduced from
approximately 12.3 million shares to 12.0 million shares.
Furthermore, the cash payment and shares issuable to the Great
American equityholders upon achievement of the 2009, 2010 and 2011
Adjusted EBITDA targets have been reduced from an aggregate of
$25.0 million to $10.0 million and from an aggregate of 10.0
million shares to 6.0 million shares. Today's amendment to the
Agreement also provides the number of shares of AAMAC's common
stock owned by AAMAC's founders which will be cancelled upon the
consummation of the Acquisition has been increased from 2.85
million shares to 6.35 million shares, as well as an additional
0.92 million shares to offset the shares of the Company's common
stock that the founders will receive in connection with the
Exchange. The consummation of the Acquisition is contingent upon
AAMAC obtaining the vote of a majority in interest of its
warrantholders to allow AAMAC to amend its Warrant Agreement to:
(a) require GA to redeem all of the outstanding warrants, including
those held by AAMAC's sponsors, at any time on or prior to the 90th
day following the Acquisition, at a price of $0.50 per warrant (the
"Warrant Redemption"), (b) delay the commencement of the
exercisability of the warrants from immediately following the
Acquisition to the 91st day following the consummation of the
Acquisition, and (c) preclude any adjustment of the warrants as a
result of the Acquisition. If the AAMAC warrantholders approve the
Warrant Redemption proposal, then the Company will redeem the
warrants on or prior to the 90th day following the Acquisition,
during which period the Company intends to explore the timing and
conduct of a warrant exchange with the holders of the Company
warrants for warrants with an exercise price that exceeds the
current exercise price and an exercise period longer than the
existing exercise period. The Acquisition is subject to customary
closing conditions, including approval of the Acquisition by
AAMAC's stockholders. In addition, the closing of the transaction
is also conditioned on holders of fewer than 30% of the shares of
AAMAC common stock voting against the Acquisition and electing to
convert their AAMAC common stock into cash. As previously
announced, the Special Meeting of AAMAC Warrantholders and Special
Meeting of AAMAC Stockholders have been scheduled for July 28, 2009
and a record date of July 8, 2009 has been set with respect to the
meetings. AAMAC has until August 1, 2009 to complete a transaction
before it would otherwise be required to liquidate. Additional
information regarding Great American, the Acquisition and the
related transactions will be available in the Registration
Statement on Form S-4 to be filed by GA with the Securities and
Exchange Commission ("SEC") and in the revised preliminary proxy
statement to be filed by AAMAC with the SEC, copies of which may be
obtained without charge, at the SEC's website at
http://www.sec.gov/. Great American's website is
http://www.greatamerican.com/. The information on Great American's
website is not, and shall not be deemed to be, incorporated in
filings either AAMAC or GA makes with the SEC. About Alternative
Asset Management Acquisition Corp. AAMAC is a blank check company
which was formed in 2007 for the purpose of acquiring through a
merger, capital stock exchange, asset acquisition, stock purchase,
reorganization or similar business combination one or more
businesses or assets. AAMAC's initial public offering was
consummated on August 7, 2007 and it received net proceeds of
$397,560,377 through the sale of 41.4 million units, including 5.4
million units pursuant to the underwriters' over-allotment option,
at $10.00 per unit. Each unit is comprised of one share of AAMAC
common stock and one warrant with an exercise price of $7.50. As of
June 30, 2009, AAMAC held $407.6 million (or approximately $9.84
per share) in a trust account maintained by an independent trustee,
which will be released upon the consummation of the transaction.
About Great American Group, LLC Great American is a leading
provider of asset disposition solutions and valuation and appraisal
services to a wide range of retail, wholesale and industrial
clients, as well as lenders, capital providers, private equity
investors and professional service firms. Forward Looking
Statements Statements made in this release, other than those
concerning historical financial information, may be considered
forward-looking statements, which speak only as of the date of this
release and are based on current expectations and involve a number
of assumptions. These forward-looking statements include outlooks
or expectations for earnings, revenues, expenses or other future
financial or business performance, strategies or expectations, or
the impact of legal or regulatory matters on business, results of
operations or financial condition. Specifically, forward-looking
statements may include statements relating to the benefits of the
transaction; the future financial performance of GA following the
Acquisition; the growth of the market for GA's services; expansion
plans and opportunities; consolidation in the market for GA's
services generally; and other statements preceded by, followed by
or that include the words "estimate," "plan," "project,"
"forecast," "intend," "expect," "anticipate," "believe," "seek,"
"target" or similar expressions. These forward-looking statements
involve a number of known and unknown risks and uncertainties or
other assumptions that may cause actual results or performance to
be materially different from those expressed or implied by these
forward-looking statements. Some factors that could cause actual
results to differ include: (1) AAMAC's ability to complete its
initial business combination within the specified time limits; (2)
difficulties encountered in integrating the merged businesses and
management teams; (3) officers and directors allocating their time
to other businesses and potentially having conflicts of interest
with AAMAC's business or in approving the Acquisition or another
business combination; (4) success in retaining or recruiting, or
changes required in, GA's officers, key employees or directors
following the Acquisition; (5) listing or delisting of AAMAC's
securities from the NYSE Amex or the ability to have GA's
securities listed on the NYSE Amex following the transaction; (6)
the potential liquidity and trading of AAMAC's and GA's public
securities; (7) GA's revenues and operating performance; (8)
changes in overall economic conditions; (9) anticipated business
development activities of GA following the Acquisition; (10) risks
and costs associated with regulation of corporate governance and
disclosure standards (including pursuant to Section 404 of the
Sarbanes-Oxley Act of 2002); and (11) other risks referenced from
time to time in AAMAC's and GA's filings with the SEC and those
factors listed in GA's Registration Statement on Form S-4 and the
proxy statement/prospectus therein under "Risk Factors". None of
AAMAC, Great American or GA assumes any obligation to update the
information contained in this release. Additional Information and
Where to Find It In connection with the proposed transaction, GA
has filed with the SEC a registration statement on Form S-4 to
register the securities to be issued to the stockholders and
warrantholders of AAMAC. The registration statement includes a
proxy statement/prospectus, which will be sent to the
securityholders of AAMAC seeking their approval of the transaction
and related matters. In addition, AAMAC and GA may file other
relevant documents concerning the proposed transaction with the
SEC. This press release is being made pursuant to and in compliance
with Rules 145, 165 and 425 of the Securities Act of 1933, as
amended, and does not constitute a solicitation of proxies from the
holders of common stock and warrants of AAMAC and does not
constitute an offer of any securities for sale or a solicitation of
an offer to buy or exchange any securities. AAMAC, Great American,
GA and their respective directors and officers may be deemed to be
participants in the solicitation of proxies for the special
meetings of AAMAC's stockholders and AAMAC's warrantholders to be
held to approve the proposed transaction. The underwriters of
AAMAC's initial public offering may provide assistance to AAMAC,
Great American, GA and their respective directors and executive
officers, and may be deemed to be participants in the solicitation
of proxies. A substantial portion of the underwriters' fees
relating to AAMAC's initial public offering were deferred pending
stockholder approval of AAMAC's initial business combination, and
stockholders are advised that the underwriters have a financial
interest in the successful outcome of the proxy solicitation. WE
URGE INVESTORS AND SECURITYHOLDERS TO READ THE REGISTRATION
STATEMENT ON FORM S-4 INITIALLY FILED BY GA WITH THE SEC ON JUNE 1,
2009, AND ALL AMENDMENTS THERETO, INCLUDING THE PROXY
STATEMENT/PROSPECTUS, AND ANY OTHER RELEVANT DOCUMENTS TO BE FILED
WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTION, BECAUSE
THEY CONTAIN IMPORTANT INFORMATION ABOUT AAMAC, GREAT AMERICAN, GA
AND THE PROPOSED TRANSACTION. Investors and security holders may
obtain free copies of these documents through the website
maintained by the SEC at http://www.sec.gov/. In connection with
the proposed Acquisition and amendment to the Warrant Agreement,
AAMAC has filed with the SEC a preliminary proxy statement and will
file a definitive proxy statement. AAMAC's stockholders and
warrantholders are advised to read, when available, the proxy
statement/prospectus and other documents filed with the SEC in
connection with the solicitation of proxies for the special
meetings because these documents will contain important
information. The definitive proxy statement/prospectus will be
mailed to AAMAC's stockholders and warrantholders as of the record
date for voting on the Acquisition and the amendment to the Warrant
Agreement. AAMAC's stockholders and warrantholders will also be
able to obtain a copy of the definitive proxy statement/prospectus,
without charge, by directing a request to: Alternative Asset
Management Acquisition Corp., 590 Madison Avenue, 35th Floor, New
York, New York 10022. The preliminary proxy statement/prospectus
and, once available, the definitive proxy statement/prospectus, can
also be obtained, without charge, at the SEC's website at
http://www.sec.gov/. Contacts: Alternative Asset Management
Acquisition Corp. Contact: Chris Tofalli Chris Tofalli Public
Relations, LLC (914) 834-4334 Great American Group, LLC Contact:
Laura Wayman 847-444-1400 ext 312 DATASOURCE: Alternative Asset
Management Acquisition Corp. CONTACT: Alternative Asset Management
Acquisition Corp., Contact: Chris Tofalli, Chris Tofalli Public
Relations, LLC, +1-914-834-4334; or Great American Group, LLC,
Contact: Laura Wayman, +1-847-444-1400 ext 312, Web Site:
http://www.greatamerican.com/
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