Atlantic Coastal Acquisition II (ACAB) said it entered into a subscription agreement with Polar Multi-Strategy Master Fund in which Polar will provide the SPAC’s sponsor up to $360,000 in exchange for one share of the SPAC’s stock for each $1 invested.
The obligation to make capital contributions terminates Sept. 19. Funds invested by Polar will be loaned by the sponsor to ACAB on an interest-free basis to fund working capital needs and other expenses in connection with the de-SPAC closing. An initial investment of up to $270,000 may be made by Polar within five business days of the date of the subscription agreement upon request by the sponsor.
Atlantic Coastal II has a deal with Abpro at approximately $500 million. The deal was originally announced in September at an implied equity value of $725 million.
The target is a biotechnology company focused on next-generation antibody therapies for severe and life-threatening diseases.
The transaction is expected to be funded with a $37.6 million PIPE and the $7.2 million the SPAC holds in trust.
The deal is still expected to be completed in the second quarter.
Atlantic Coastal II originally raised $250 million in a January 2022 IPO. Read more.
