The shareholders of Stone Arcade (SCDE.OB) have approved the acquisition of the Kraft Papers Business. The transaction is expected to close prior to January 5, 2007.
SCDE raised $120 million when it completed its IPO on August 16, 2005. On Friday, the common shares and warrants closed at $6.36 and $1.63, respectively, giving the units, which closed at $9.91, a value of $9.62. The units were originally priced at $6.00.
Stone Arcade Stockholders Approve Acquisition of the Kraft Papers Business, a Division of International Paper Company
Friday December 29, 12:10 pm ET
NORTHFIELD, Ill., Dec. 29, 2006 (PRIME NEWSWIRE) -- Stone Arcade Acquisition Corporation (OTC BB:SCDE.OB - News) announced today that at a special meeting held today its stockholders approved the Company's previously-announced proposed acquisition of the Kraft Papers Business (``KPB'), a division of International Paper Company. Of the 23,661,853 votes cast at the meeting (representing 94.6% of the Company's total outstanding shares), 99.8% voted in favor of the acquisition of KPB. Holders of 40,000 shares issued in the Company's initial public offering voted against the acquisition and elected to have such shares redeemed into a pro rata portion of the IPO trust account. As previously announced, Stone and International Paper Company extended the termination date of the acquisition until January 5, 2007. Accordingly, it is expected that the Company will close on the acquisition of KPB in the next several days.
In connection with the acquisition of KPB, the Company's stockholders also approved amendments to Stone's certificate of incorporation to change its name to ``KapStone Paper and Packaging Corporation' and to remove provisions relating to procedures governing Stone's first business combination. Stone does not intend to effectuate either of the amendments to its certificate of incorporation until the acquisition has been consummated. The Company's stockholders also approved Stone's 2006 Incentive Plan, which reserves 3,000,000 shares of common stock for issuance to employees, directors, officers and consultants of Stone and any subsidiaries pursuant to options, restricted stock awards or stock appreciation rights.
In connection with the proposed business combination, Stone filed a Definitive Proxy Statement (No. 000-51444) with the SEC. Investors are urged to carefully read the Definitive Proxy Statement which was distributed to stockholders on or about December 16, 2006, and any other relevant documents filed with the SEC, because they contain important information about Stone, KPB and the proposed transaction, including detailed risk factors. The Definitive Proxy Statement and other documents filed by Stone are available free of charge at the SEC's website, sec.gov, or by directing a request to Stone Arcade Acquisition Corporation, One Northfield Plaza, Suite 480, Northfield, IL 60093, Attention: Roger Stone.
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