GigCapital5 in a regulatory filing said it will proceed with a lawsuit against QT Imaging for alleged breaches of their merger agreement, while rejecting the target’s attempt to terminate the deal.
The SPAC filed the lawsuit in the Court of Chancery of the State of Delaware against QT Imaging and its primary stockholder seeking, among other things, to compel the target to act in accordance with its obligations under the merger agreement.
GigCapital5 further noted that although the Sept. 8 closing date has passed — which is the basis for QT Imaging’s attempt to quit the deal — the SPAC said it is the fault of the target that the deal was not completed within deadline.
A trial is set to begin Nov. 20.
At deal announcement in December, QT Imaging was to receive approximately $41 million in gross proceeds from GigCapital5’s trust account, assuming no redemptions by GigCapital5’s stockholders, and up to $26 million in additional financing.
QT Imaging offers what it calls “an improved imaging modality to address critical deficiencies in the current breast imaging paradigm, especially false-positive testing results.” Read more.
