Lakeshore Acquisition I filed a proxy outlining terms of its proposed merger with ProSomnus, a manufacturer of medical devices for the treatment of obstructive sleep apnea. A shareholder vote is set for Dec. 2.
The SPAC in September won a three-month extension to complete the transaction, although redemptions erased more than half the $50 million the SPAC raised in a June 2021 IPO.
Terms with ProSomnus now call for $113 million in stock, minus any debt in excess of $12 millio.. Cohanzick Management and CrossingBridge Advisors are expected to lead and backstop a $30 million senior and junior convertible note investment.
The deal has a $40 million minimum cash requirement to close.
The parties at deal announcement in May had also expected to receive a minimum additional $10 million in equity from a PIPE or from Lakeshore’s trust. Read more.
