Ignyte Acquisition said its stockholders voted in favor of its business combination with Peak Bio, a biopharmaceutical company. Approximately 75% of voting shares were in support of the merger, according to a press release.
The transaction is expected to close Oct. 31, the SPAC said.
In tandem with the shareholder vote, Ignyte disclosed in an 8-K that it entered into a forward share purchase agreement with Frost Gamma Investments Trust. Terms provide that if Frost Gamma holds at least 450,000 shares as of the closing of the business combination, Frost may elect to sell the sahrees to the merged company 60 days from the closing. The sale price is $10.115 per share.
The SPAC has also proposed a modification of its $15.5 million PIPE agreement such that the PIPE investors would also receive warrants for the purchase of up to 1,441,500 shares. The warrants would be exercisable for up to a year following the deal close.
Neither the press release announcing the shareholder vote nor the subsequent 8-K filing mentioned redemptions, if any.
Peak Bio is expected to trade on the Nasdaq under the symbol PKBO. Read more.
