FACT II terminates Precision Aerospace merger

FACT II Acquisition Corp. announced the termination of its planned business combination with Precision Aerospace & Defense Group, Inc. (PAD), after failing to secure required approvals and closing conditions. The parties noted that the termination is permissible under the agreement because closing did not occur by the specified date, with no breaches alleged, and the SPAC remains listed and active in seeking other opportunities. The termination affects related agreements, including the Sponsor Support Agreement and PAD-related support arrangements, which also ended under their terms. The company said it would provide additional information via a current SEC filing and will continue evaluating alternative merger opportunities in line with its governing documents. Management attributed the decision to unforeseen circumstances involving a key subsidiary acquisition that materially altered the transaction. Investors are advised that the termination leaves existing confidentiality, expense arrangements, and trust-account provisions largely intact while the SPAC proceeds with its stated strategy.