Phoenix Biotech Acquisition said it will create two additional pools of earnout shares of common stock, which would sweeten the deal with CERo Therapeutics. The SPAC’s shareholders approved the merger Feb. 12, although total redemptions claimed 99.5% of the shares outstanding.
One earnout pool will contain 875,000 shares, which will fully vest at closing of the business combination and which are being issued as an offset to the agreement by Phoenix Biotech’s sponsor to forfeit an equal number of shares. The second pool will contain 1 million shares, which will be fully vested if CERo submits an application to the FDA for a new investigational drug.
CERo is an immunotherapy company seeking to advance the next generation of engineered T cell therapeutics.
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. Read more.
