Redwoods Acquisition in a proxy filing seeks a deadline extension of up to 12 months, until Dec. 4, 2024, which would be 32 months post-IPO. The SPAc called a Nov. 13 for shareholders to vote on the proposal.
“Given current market conditions, the Sponsor would like to further extend the Combination Period and pay extension fees that are less than the $120,000 required for each monthly extension under the existing charter” (effective to Dec. 4 this year), the proxy states. “The company expects that there will be significant redemptions at the special meeting.”
Redwoods has a $94 million deal in hand with ANEW MEDICAL, an early-stage biotechnology company focused on developing disruptive new therapies to treat neurodegenerative diseases. Omaha, NE-based ANEW currently lists on the OTC Markets under the symbol LEAS.
The transaction at deal announcement in May was expected to provide approximately $54 million of cash proceeds, which assumed no redemptions by Redwoods stockholders.
If approved, after closing ANEW MEDICAL expects to list on the Nasdaq.
Redwoods Acquisition is led by Jiande Chen, former CEO of IMAX China. Read more.
