11 Mar 2022 17:34

Gett decides not to merge with SPAC, would have rendered it public company

MOSCOW. March 11 (Interfax) - Gett and Rosecliff Acquisition Corp have decided not to merge the taxi service with Rosecliff Acquisition Corp I special purpose acquisition company (SPAC), which would have rendered Gett a public company, according to the press release from the VNV Global fund, one of Gett's investors.

The decision has been taken amid "the current market conditions and a review of the business strategy," according to the press release.

Gett's merger with Rosecliff Acquisition Corp I was announced in November, and the parties intended to finalize it in the first half of 2022. It was expected that the company would continue its activities under the Gett brand following the merger and that its shares would be traded on Nasdaq.

Moreover, the press release indicates that Gett has decided to exit the Russian transportation and delivery market. It notes that less than 14% of Gett's overall gross profit comes from the Russian market.

Outside of Russia, Gett operates in Israel, the United States, and the United Kingdom.

Gett said earlier on Friday that the Russian division of the taxi service would be reorganized by decision of its global office.

"In connection with the current geopolitical situation, many of Gett's corporate clients are leaving the Russian market or halting their activities, which substantially impacts the company's ability to implement its strategy. The Russian company will be reorganized and will fulfill all obligations undertaken before its clients and employees," Gett said.

The details of the reorganization were not disclosed in the press release, while Gett's press service in Russia said that its Russian office had not yet received details on the reorganization from the global office and is therefore continuing to work as usual.