CHW Acquisition in an 8-K filing said it has entered into a forward purchase agreement with investors who will sell up to 2,393,378 shares at $10.30 each on the third anniversary of the SPAC’s completed deal with Wag, a pet services marketplace. The FPA follows shareholder approval last month of the SPAC’s proposed merger with Wag.
CHW noted that 97.78% of all outstanding public shares were redeemed ahead of the vote, leaving about $2.8 million in trust. However, the SPAC had secured a $30 million term loan and $16 million PIPE in support of the deal — more than enough to satisfy the $30 minimum cash condition.
The FPA participants are Milton Arbitrage Partners, MMCAP International, Nautilus Master Fund and Polar Multi-Strategy Master Fund.
In exchange for the company’s commitment to purchase the investor shares on the Put Date, each investor agreed that it will not request redemption of any of the shares in conjunction with the company’s shareholders’ approval of the business combination, or tender the shares to the company in response to any redemption or tender offer that the company may commence for its ordinary shares. Read more.
