TradeUP Acquisition in a regulatory filing said it entered into subscription agreements with Plentiful Limited and Lianhe World Limited, a company incorporated in China, each of which will purchase $5 million of the company’s stock.
This move follows TradeUP shareholders’ July 31 vote in favor of merging with Estrella Biopharma. In the run-up to the vote, the SPAC’s trrust was down to about $1 million on redemptions, although TradeUP had secured an earlier $6.8 million PIPE to support the deal.
At deal announcement last October, terms had called for Estrella to receive the SPAC’s $45.4 million of cash held in trust at that time.
The pro forma stockholders’ equity of the combined company as of June 30 was approximately $10.9 million, which reflects $10 million in proceeds to be received at closing, $9.75 million in proceeds to be received at closing in connection with the concurrent sale of 9.75 million shares of Series A preferred stock of Estrella to certain investors, and redemptions of 671,184 shares of the SPAC’s stock ahead of the merger vote.
The combined company’s anticipated first date of trading will be in October 2023. Applying an estimated monthly burn rate of approximately $1.2 million for the four months from July 1 to Oct. 31, the estimated loss for the four months from July 1, 2023 to October 31, 2023 will be approximately $4.7 million, which will result in a pro forma stockholders’ equity of approximately $6.2 million as of Oct. 31.
The resulting pro forma stockholders’ equity as of the anticipated first date of trading of the combined company next month will be approximately $6.2 million, according to the filing.
Estrella is a preclinical-stage biopharmaceutical company developing CD19-targeted ARTEMIS T-cell therapies under certain license agreements with the capacity to address treatment challenges for patients with blood cancers and solid tumors. Read more.
