GigCapital5 in an 8-K said it entered into separate non-redemption agreements with certain public stockholders aheahd of tomorow’s shareholder meeting to consider a deadline extension as the SPAC continues work on a proposed merger with QT Imaging.
One of the stockholders signing the agreement is Meteora Capital Partners, which also has an economic interest in the sponsor of GigCapital5.
The non-redemption agreement covers 2,042,903 shares.
As consideration, QT Imaging has agreed to issue a number of shares equal to the number of non-redeemed GigCapital5 shares multiplied by 0.15, divided by the exchange ratio.
These moves follow the SPAC’s recent decision to drop a lawsuit against merger partner QT Imaging and focus, instead, on renewed efforts to complete the deal. The suit had alleged breaches of the merger agreement, while rejecting the target’s attempt to terminate the deal.
The parties also amended their business combination agreement to remove the $15 million minimum cash condition to close and eliminated the condition precedent that shares of GigCapital5 shall be listed on an exchange as of the closing date, which is now tentatively set for Dec. 31.
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.
