HH&L Acquisition in an 8-K today said it entered into a subscription agreement with Polar Multi-Strategy Master Fund in which Polar agrees to make capital contributions up to $1.5 million for the SPAC’s working capital.
An initial drawdown of $500,000 is available within five business days of the agreement; another $500,000 would be available for drawdown within five business days after the SPAC announces a business combination agreement; and the balance could be drawn after HH&L files a registration statement on a business combination.
In exchange, HH&L and its sponsor will issue one share for each dollar Polar contributes.
Upon repayment of working capital loans from HH&L to the sponsor, the sponsor will repay Polar the amount funded under the agreement within five days of closing a merger.
HH&L last week said it signed a non-redemption agreement with investors who’ve agreed to hold 500,000 shares through a proposed extension that would move the SPAC’s deadline from today to Feb. 9, 2024. Read more.
