LMF Acquisition Opportunities said its shareholders voted in favor of combining with SeaStar Medical, a technology company developing proprietary solutions to reduce the consequences of hyperinflammation on vital organs.
More than 96% of the votes cast at the meeting voted to approve the business combination, according to the announcement. Holders of approximately 79% of the SPAC’s issued and outstanding shares cast votes.
LMFAO in an 8-K disclosed that 10,257,655 shares were redeemed, which would have wiped out all but about $3 million from the SPAC’s trust. However, LMFAO has a prepaid forward purchase agreement with Vellar Opportunity Fund, which may buy up to 1.5 million previously redeemed shares. That alone would be enough to cover the $15 million minimum cash condition to close the deal. The SPAC also has a $7 million PIPE and a $100 million common stock purchase agreement with Tumim Stone Capital.
After closing, SeaStar Medical Holding stock and warrants are expected to begin trading on the Nasdaq under the new ticker symbols ICU and ICUCW.
The deal had a combined enterprise value of $85 million when announced in April.
The SPAC raised $90 million in a January 2021 IPO with plans at that time to focus on acquiring a business within the financial services industry and related sectors, including FinTech. The company was focusing on acquisitions with an enterprise value of approximately $250 million to $500 million.
The Dow Chemical Company Pension Plans, as existing investors of SeaStar Medical, are participating in the PIPE supporting the deal. Read more.
