Northern Star Investment Corp. IV (NSTD)

Northern Star Investment Corp. IV was a special purpose acquisition company, or SPAC, formed to merge with a private operating business. It had no operations of its own and held the money raised from investors in a trust account. The sponsor said it would focus on direct-to-consumer brands and digitally disruptive e-commerce companies. Its Class A shares traded on the New York Stock Exchange under the symbol NSTD, with units and warrants listed alongside.

The SPAC was one of several vehicles in the Northern Star family led by media executive Joanna Coles as chair and chief executive, with Jonathan Ledecky as president. It completed its initial public offering in March 2021, selling 40 million units at $10.00 each for $400 million. That was near the peak of the SPAC boom, when hundreds of similar companies were competing for a limited pool of targets. Northern Star IV did not announce a definitive merger agreement.

As its deadline approached, shareholders approved an extension in March 2023, and about 35.8 million shares were redeemed for cash from the trust. A second extension in August 2023 pushed the deadline to March 2024 and triggered further redemptions. The sponsor signed non-redemption agreements with several holders to keep some cash in the trust. Even so, the remaining public float shrank to a small fraction of the original offering.

On September 12, 2023 the NYSE suspended trading and began delisting proceedings because the SPAC's average market value of publicly held shares had fallen below $40 million. The shares then traded over the counter. In March 2024 holders approved charter changes tied to distributing the remaining trust funds while keeping the company in existence as a shell. No operating business was ever acquired.