Deep Medicine Acquisition in an 8-K said it entered into non-redemption agreements with unaffiliated third parties who will not redeem shares ahead of the SPAC’s upcoming extension vote. Deep Medicine wants to push its deal deadline from July 29 to Jan. 29, 2024.
Deep Medicine and its sponsor to date have entered into Non-redemption agreements covering up to 22,606 shares. In return for holding their stock, the participants would receive 8,138 founder shares.
As of July 29, the per-share redemption price is estimated to be approximately $11.45.
The SPAC raised $110 million in an October 2021 IPO with initial plans to focus on targets in the healthcare industry.
Deep Medicine now has a merger agreement with TruGolf, a golf simulator manufacturer and distributor. Announced in March, the deal has an implied enterprise value for TruGolf of $125 million. The amount includes up to approximately $45 million of contingent consideration if certain milestones are met.
The target manufactures and sells a line of golf simulator equipment, including software and hardware, and is currently developing a new line of next-generation golf simulator products.
The combined company at deal announcement was expected to have a total pro forma equity value of approximately $134.1 million if the merger ultimately wins shareholder approval, which assumed no redemptions. However, in the latest filing Deep Medicine disclosed that 465,446 shares have been submitted for redemption as of July 11, leaving 4,147,964 shares outstanding. Read more.
