Ignyte Acquisition, which has a merger agreement with Peak Bio, in an 8-K filing said it issued a promissory note for $100,000 to its sponsor. The SPAC needs the money for working capital, according to the filing. The note is not convertible.
Ignyte in April announced a merger agreement with Peak Bio, a clinical-stage biopharmaceutical company focused on developing the next-generation of therapeutics to treat oncology and inflammatory diseases.
The combined company is expected to have more than $82.5 million in gross proceeds from a combination of approximately $57.5 million in cash held in Ignyte’s trust account (assuming no redemptions) and more than $25 million from a fully committed PIPE. The PIPE includes participation from healthcare institutional investor Palo Alto Investors and insiders.
The combined company is valued at $278 million. Ignyte filed a preliminary proxy on the deal in June. Read more.
