Phoenix Biotech Acquisition said its shareholders voted in favor of combining with CERo Therapeutics, an immunotherapy company seeking to advance the next generation of engineered T cell therapeutics that employ phagocytic mechanisms. There were 5,493,678 shares voted in support of the merger, with 10,588 shares against.
The 8-K annnouncing the voting results did not include a timeline for when the deal might close, although the parties had removed the minimum cash condition to complete the transaction.
Holders of 671,285 shares exercised redemption rights and will be paid almost $7.5 million ($11.11 per share). All told, the SPAC has lost 99.5% of its trust to redemptions.
Phoenix Biotech also has a $2 million PIPE to support the deal. The parties earlier this month adjusted the terms to increase the number of shares CERo stockholders would be paid, from 4,651,704 shares to 5 million shares. That’s in addition to up to 1.2 million shares issuable upon satisfaction of certain earn-out conditions and 382,651 shares issuable upon exercise of rollover options or warrants.
The deal was announced last June at a pro forma equity capitalization of $145 million.
The business combination reflects a pre-money equity value of $50 million for CERo. Read more.
