MedTech Acquisition in an 8-K said it entered into subscription agreements in which the participants have agreed to purchase 1,785,502 shares of a to-be-authorized class of preferred stock at $10 per share.
The SPAC also said it entered into a backstop agreement with its sponsor, which agreed to purchase between $2 million and $3 million worth of Series A convertible preferred stock. Ther precise amount will depend on whether the sponsor opts to participate in the convertible note agreement.
The moves are in support of the Spac’s proposed merger with TriSalus.
The target is a privately held oncology therapeutics company integrating immunotherapy with disruptive delivery technology to transform the treatment paradigm for patients with liver and pancreatic tumors. TriSalus has raised about $170 million in venture funding from backers including Tullis Health Investors.
If approved, at closing the combined company expects to have at least $60 million in cash, which assumes “significant redemptions,” according to the press release announcing the deal two months ago. Cash at closing includes up to $50 million from a convertible note for which MedTech and TriSalus have entered into a non-binding term sheet with an institutional investor. Read more.
