East Stone Acquisition Shores up JHD Merger with Backstop

East Stone

East Stone Acquisition in an 8-K filing said it had entered a forward-purchase agreement with multiple funds, which will hold their shares through the vote on the SPAC’s oft-delayed merger with JHD Holdings.

The SPAC’s sponsor Double Venture Holdings has twice deposited $1.38 million into the trust account for deadline extensions.

In exchange for the agreement to not redeem shares before the merger vote, the SPAC agreed to pay $10.41 per share to participants in the forward-purchase agreement on the three-month anniversary of the merger closing.

Announced in February, terms call for the combined company to issue $1 billion in shares to the selling parties, with 10 percent of those shares subject to an earn-out and escrowed under the terms of the agreement.

JHD Holdings is a merchant enablement platform serving lower-tier cities in China. Read more.

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