Capstar Special Purpose Acquisition in an 8-K filing said it has amended merger terms with biotherapeutics company Gelesis, revising the equity valuation from $900 million to $675 million. The changes also an increase in the earn-out provision to 23.48 million shares from the previous 15 million shares. The SPAC’s sponsor further agreed to forfeit nearly 2 million shares to company stockholders if the deal is approved.
As announced in July, the original transaction terms called for up to $376 million in gross proceeds to the combined company from a combination of a $100 million PIPE and $276 million of cash held in Capstar’s trust account (assuming no redemptions). Read more.