Aesther Healthcare Acquisition in an 8-K filing said its merger deal with United Gear & Assembly will be terminated by mutual consent. No reason was given, although a letter included with the filing shows Aesther instigated the move to call off the deal.
The merger plan was announced just two months ago. Last week Aesther entered into a common stock purchase agreement with White Lion Capital that would have given the SPAC the right to require White Lion to purchase up to $50 million in Class A common stock. That, too, was terminated.
Hudson, Wisconsin-based United Gear is a subsidiary of United Stars Holdings, which manufactures small to medium-size precision gears and shafts for industries.
Aesther raised $105 million in an IPO last September with plans to focus on the pharmaceutical and medical device sectors. The SPAC in its latest filing said it would continue to pursue an acquisition. Read more.
