Conflict Arises Again Between A-Rod and the 'Seller' in Dispute Over SPAC Deal

In a surprising turn of events, Alex Rodriguez's Slam Corp. finds itself embroiled in a legal dispute with Lynk Global, a startup aiming to bring mobile phone coverage to 750 million people without traditional cellular services.

Last year, Slam Corp., a sports-focused SPAC that raised $575 million in its IPO, secured a merger agreement with Lynk Global for an $800 million valuation. However, recent developments suggest that Lynk may have had a change of heart regarding the merger.

The delay in providing financial statements by Lynk resulted in three extensions on the merger deadline, costing Slam $80,000 per month. An email seeking comment sent to Lynk's head of global affairs, Amy Mehlman, went unanswered. A similar email to A-Rod's business partner and Slam president, Kelly Laferriere, was directed to an outside PR firm, which declined comment.

Slam believes Lynk is trying to slow walk the provision of financial information to run out the clock on the business combination agreement and pursue an alternative transaction. In response, Slam has asked the court to compel Lynk to follow through with the merger and to award the SPAC damages to be determined by a trial.

Meanwhile, Lynk disagrees with Slam's claims and intends to vigorously defend against them and file counterclaims. The new Lynk CEO, whose name is not disclosed, is accused by Slam of intentional foot dragging regarding the provision of financial statements.

Interestingly, Lynk has raised $85 million in Series B funding from Intelsat and SES, two satellite communications firms, after realizing its business is more valuable than the $800 million valuation from the Slam merger. This move has further fueled speculation about Lynk's intentions.

The SPAC bubble burst in 2022, causing difficulties in the market for Slam Corp. Despite these challenges, Slam shareholders have voted to extend the window for closing the merger once more, while waiting for the court's decision.

As the legal battle unfolds, both parties are reportedly seeking undisclosed deals with other parties instead of following through with the merger. The outcome of this dispute could have significant implications for both Slam Corp. and Lynk Global, as well as the broader SPAC market.