SAN FRANCISCO – Following a merger announcement between Tempo Automation and ACE Convergence Acquisition Corp. in October, yesterday ACE filed a supplement to its Dec. 15 proxy statement, wherein ACE proposed to extend the date by which the company must consummate its initial business combination from Jan. 30 to July 13.

The proposal is expected to be presented at ACE’s annual general meeting of shareholders Jan. 21.

ACE Convergence Acquisition, the company’s sponsor, has agreed if the extension is approved, it will contribute to ACE as a loan $0.03 for each Class A ordinary share that is not redeemed in connection with the shareholder vote to approve the extension for each month until the earlier of the date of the extraordinary general meeting to be held in connection with the shareholder vote to approve the business combination between ACE and Tempo and $1.5 million has been loaned.

The amounts loaned will be placed in the trust account established in connection with ACE’s initial public offering. If the extension is completed, and the sponsor makes contributions totaling the full $1.5 million, the conversion amount per share at the meeting for the proposed business combination or ACE’s subsequent liquidation will be approximately $10.07 per share, compared to the current conversion amount of approximately $10.00 per share.

Upon closing of the merger transaction, the combined entity is expected to be renamed Tempo Automation Holdings. Tempo and ACE currently expect the transaction to be closed in the first or second quarter of 2022.

 
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