Greencity Acquisition Corporation (GRCY)

Greencity Acquisition Corporation was a blank check company, or SPAC, incorporated in the Cayman Islands with offices in Shanghai. It was formed to merge with an operating business, with a stated focus on middle-market growth companies tied to Asian markets, and it held the money raised from investors in a trust account until a deal could be completed. It had no operations of its own.

The company completed its initial public offering in July 2020, selling 4,000,000 units at $10.00 each for $40 million. Its units, ordinary shares and warrants traded on the Nasdaq Capital Market under GRCYU, GRCY and GRCYW. Each unit combined one share with a warrant and a right to receive part of a share upon a business combination. Its sponsor was linked to investors in China.

Greencity never signed a binding merger agreement. Shareholders approved several deadline extensions in 2022 and 2023, and each vote led many holders to redeem their shares for cash from the trust, shrinking the public float. By early 2023 Nasdaq notified the company that it fell short of requirements for publicly held shares and market value. The company said it held non-binding talks with possible targets.

On May 22, 2023 Nasdaq ruled that the company no longer met its listing standards. Greencity did not appeal, trading on Nasdaq was suspended on June 1, 2023, and a Form 25 removing the securities took effect on July 20, 2023. After that its securities were quoted only over the counter. Remaining holders were left with thinly traded securities. Its shares had no exchange listing after that.