8i Acquisition 2 and EUDA Health enterted into a forward purchase agreement with an unnamed institutional investor for up to 1.125 million shares. The investor has agreed to hold the shares for the benefit of 8i until the closing of the deal with EUDA.
The prepaid forward agreement provides that the investor shall be paid directly out of funds held in 8i’s trust. In addition, the investors will be paid directly from the trust Account an amount equal to the redmption price of 100,000 shares.
About 96% of the SPAC’s cash in trust was wiped out on redemptions before the merger vote last week.
The parties in June lowered the value of the deal to $172 million, down from an enterprise value of $583 million when announced in April.
The deal with EUDA Health is a related party transaction. Meng Dong Tan, The SPAC’s CEO and chairman, is a 10% shareholder of Watermark Developments, the sole shareholder of EUDA Health. Read more.
