Cactus Acquisition 1 in an 8-K said it issued an unsecured promissory note for $600,000 to Energi Holding Limited. The note is repayable in full upon the earlier of either Nov. 1, 2024, if the SPAC liquidates or at the completion of a merger.
The note bears no interest, however, an establishment fee, a line fee and an exit fee totaling 9% annually are payable on the maturity date.
As an inducement for Energi to fund the note, Energi may elect to forfeit repayment rights and receive, instead, 600,000 of Cactus 1 sponsor’s Class A shares. At the SPAC’s last trading price of $11, that would make the lender’s investment worth $6.6 million.
Cactus 1 has been focused on Israel-related technology-based healthcare companies. It has a deadline coming up in November. The SPAC raised $126.5 million in an upsized IPO two years ago. Read more.
