Ignyte Acquisition in an 8-K disclosed it is in discussions with various parties about a forward share purchase agreement in connection with its proposed merger with biopharmaceutical company Peak Bio.
The FPA would cover up to 1.5 million shares of of the SPAC’s stock, which could be purchased below the redemption price for the shares prior to the merger. FPA participants would also agree to waive their redemption rights.
The combined company is valued at $278 million. If shareholders approve, upon closing Peak Bio expects to list on the Nasdaq under the ticker symbol PKBO. The target is 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. Read more.
