Nubia Brand International in an 8-K said it signed a forward-purchase deal with Meteora Capital Partners, which agreed to buy up to 9.9% of the SPAC’s outstanding shares.
Additionally, a non-redemption agreement calls for the participating investors to hold 9.99% of the shares outstanding by the close of a business combination. In return, those investors would be paid an amount equal to the number of backstop shares times the redemption price, minus $4 a share.
These moves follow the SPAC’s announcement earlier this week that yesterday’s shareholder vote on a proposed merger with Honeycomb Battery has been postponed until Thursday, Dec. 14. The purpose of the postponement is to allow Nubia and merger partner Honeycomb additional time to satisfy the closing conditions of their business combination, the SPAC said.
Nubia also announced that it has received redemption requests for 3,896,031 shares, representing 99.4% of the total shares outstanding. If all redemptions are satisfied, 23,586 public shares would remain outstanding.
At deal announcement in February, terms called for Nubia to issue 70 million shares of its common stock to Honeycomb investors, plus contingent earnout payments of up to 22.5 million shares if certain stock price targets are met.
Honeycomb Battery is a subsidiary of Global Graphene Group. The target is focused on the development and commercialization of battery materials, components, cells and module/pack technologies. Read more.
