secwatch.observer — SEC 8-K summary
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Issuer:     ALLIANCE ENTERTAINMENT HOLDING CORP (AENT)
CIK:        0001823584
Form:       8-K
Filed at:   2023-02-13T23:59:59+00:00
Accession:  0001104659-23-019800
Event type: m_and_a
Sentiment:  negative
Materiality: 1.00
Item codes: 1.01, 2.01, 9.01, 3.02, 4.01, 3.03, 5.03, 5.01, 5.02, 5.05, 5.06, 7.01
LLM model:  deepseek-v4-flash:cloud@v2

Alliance Entertainment closes de-SPAC with 99.1% public redemption; $1.7M trust left; credit default
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- 99.1% of Adara public shares redeemed for ~$116.6M; only 167,170 Class A shares remain outstanding.
- Trust account left with only $1.7M; proceeds used to fund business combination, severely limiting cash.
- Company delisted from NYSE American post-close; shares to trade on OTC Markets with reduced liquidity.
- Alliance breached Fixed Charge Coverage Ratio covenant; lender issued default notice Feb 8, 2023, with deferred action.
- 60M contingent Class E shares issued to Alliance stockholders; earn-out over 10 years based on trigger events.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1823584/000110465923019800/0001104659-23-019800-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1823584/000110465923019800/tm235922d1_8k.htm
  HTML page:      https://secwatch.observer/filing/0001104659-23-019800

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