Algoma Steel, Legato Merger Corp. announce approval of 'business combination'

PRESS RELEASE

Legato Merger Corp. (“Legato”) (Nasdaq: LEGO), a U.S. publicly-traded special purpose acquisition company, and Algoma Steel Group Inc. (“Algoma”), a fully integrated producer of hot and cold rolled steel products, today announced that Legato's stockholders have approved the previously announced business combination transaction between Legato and Algoma (the “Merger”).

The holders of approximately 74 per cent of the shares of Legato common stock voted at the special stockholder meeting and approximately 92 per cent of the shares voted were voted in favour the merger. 

The holders of 716 shares of Legato common stock validly exercised their redemption rights in connection with the Merger.

Legato will file with the Securities and Exchange Commission (the “SEC”) a Form 8-K disclosing the final voting results.

The closing of the merger is expected to occur as soon as reasonably practicable after the satisfaction or waiver by Algoma and Legato of all of the remaining closing conditions set out in the definitive agreements related to the Merger.

Currently the parties anticipate closing the Merger during the week of Oct. 18.

Following the closing of the Merger, the common shares of Algoma are expected to trade on each of the Nasdaq Stock Market (“Nasdaq”) and the Toronto Stock Exchange (the “TSX”) under the new symbol “ASTL”, and the warrants of Algoma will trade on the Nasdaq under the new symbol “ASTLW” and on the TSX under the new symbol “ASTL.WT.” 

In addition, each Legato unit (Nasdaq: LEGOU) will be separated into one Algoma common share and one warrant to purchase one Algoma common share following the closing of the Merger and the units will no longer trade or be listed as units.