NEW YORK, Oct. 17, 2022 (GLOBE NEWSWIRE) -- Global System Dynamics, Inc. (NASDAQ: GSD) (the “Company”) today announced that it has entered into a non-binding letter of intent (“LOI”) for a business combination with a target company (the “Target”) that uses advanced laser-based monitoring systems to provide rapid and accurate monitoring of temperatures, strains and stresses. The Target's technology provides monitoring when applied to dynamic critical infrastructure and structural health monitoring, including pipeline monitoring, structural health monitoring of bridges and buildings, perimeter and structural surveillance, aircraft & aerospace structural components and mining safety with VR capable user interface. The Target's fiber-based monitoring systems can assist markets that are not currently served, and its unique technology covers extended areas and any event that is translated into the detection of a change in strain or temperature. In addition to the Target’s ongoing efforts with respect to the marketing and sales of its technology products and services to its customers, the Target also continues to explore potential strategic alliances through joint venture and licensing opportunities to further expand its global market position.
The Target has an experienced management team that has built the business into a market sector leader and demonstrated an ability to commence and drive growth while scaling its business. The Company expects that it can offer the Target its resources, its experience, and its network of relationships to support the Target’s growth and access to more attractive financing terms through access to global public markets, making this an attractive potential business combination for the Company’s stockholders. Under the terms of the LOI, the Company and Target would become a combined entity, with the Target’s existing equity holders rolling over 100% of their equity into the combined public company.
The Company expects to announce additional details regarding the proposed business combination when a definitive agreement is executed, which is expected later in the fourth quarter of 2022.
Notwithstanding the non-binding LOI, the Company has not entered into any definitive agreements, for the purpose of acquiring, engaging in a share exchange, share reconstruction and amalgamation with, purchasing all or substantially all of the assets of, entering into contractual arrangements with, or engaging in any other similar business combination with one or more businesses or entities.
No assurances can be made that the parties will successfully negotiate and enter into a definitive agreement, or that the proposed transaction will be consummated on the terms or timeframe currently contemplated, or at all. Any transaction would be subject to board and equity holder approval of both companies, regulatory approvals, and other customary conditions. The Company expects to extend the deadline to affect a business combination by 90 days from November 8, 2022, to February 7, 2023, and the proposed transaction would be subject to approval of such proposal by the Company’s stockholders.
About Global System Dynamics, Inc.
Global System Dynamics, Inc, formally known as Gladstone Acquisition Corporation (the "Company") is a blank check company (SPAC) incorporated as a Delaware corporation on January 14, 2021, having raised more than $110,000,000.00 in its IPO, currently held in trust. The Company was formed for the purpose of acquiring, merging with, engaging in capital stock exchange with, purchasing all or substantially all the assets of, engaging in contractual arrangements, or engaging in any other similar business combination with a single operating entity, or one or more related or unrelated operating entities operating in any sector (a "Business Combination").
There is no assurance that the Company will be able to complete an initial Business Combination successfully. The Company must complete one or more initial Business Combinations having an aggregate fair market value of at least 80% of the assets held in the Trust Account (net of amounts disbursed to management for working capital purposes, if permitted, and excluding the amount of any deferred underwriting commissions and redemptions exercised) at the time of the agreement to enter the initial Business Combination. However, the Company will only complete an initial Business Combination if the post-transaction company owns or acquires 50% or more of the outstanding voting securities of the target or otherwise acquires an interest in the target sufficient for it not to be required to register as an investment company under the Investment Company Act of 1940, as amended.
If a legally binding definitive agreement with respect to the proposed business combination is executed, the Company intends to file a preliminary proxy statement (a “Deal Proxy Statement”) with the SEC. A definitive Deal Proxy Statement will be mailed to stockholders of the Company as of a record date to be established for voting on the proposed transaction. Stockholders will also be able to obtain a copy of the Deal Proxy Statement, without charge, by directing a request to: Global System Dynamics, Inc., 815 Walker Street, Houston, TX 77002. The preliminary and definitive Deal Proxy Statements, once available, can also be obtained, without charge, at the SEC’s website, www.sec.gov.
NO OFFER OR SOLICITATION
This press release shall not constitute a solicitation of a proxy, consent, or authorization with respect to any securities or in respect of the proposed business combination. This press release shall also not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any states or jurisdictions in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended, or an exemption therefrom.
FORWARD-LOOKING STATEMENTS
This press release includes “forward-looking statements” that involve risks and uncertainties that could cause actual results to differ materially from what is expected. Words such as “expects”, “believes”, “anticipates”, “intends”, “estimates”, “seeks”, “may”, “might”, “plan”, “possible”, “should” and variations and similar words and expressions are intended to identify such forward- looking statements, but the absence of these words does not mean that a statement is not forward-looking. Such forward-looking statements relate to future events or future results, based on currently available information, and reflect management’s current beliefs. A number of factors could cause actual events or results to differ materially from the events and results discussed in the forward-looking statements. In addition, please refer to the Risk Factors section of the Company’s Form 10-K, its Quarterly Reports on Form 10-Q for additional information identifying important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements. Except as expressly required by applicable securities law, the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
