Redwoods Acquisition said it entered into a non-redemption agreement with several backstop investors who agreed to rescind or reverse their previous election to redeem 360,000 shares.
The redemptions were made last month in connection with the SPAC’s stockholders vote to approve a merger with ANEW MEDICAL.
Upon completion of the merger, Redwood will pay the backstop investors cash equal to the product of the number of backstop shares and the redemption price less $5 per share.
The SPAC said it may enter into other non-redemption agreements with substantially similar terms with other investors.
The target is an early-stage biotechnology company focused on developing disruptive new therapies to treat neurodegenerative diseases. Omaha, NE-based ANEW currently lists on the OTC Markets under the symbol LEAS.
Terms at deal announcement originally called for ANEW to receive up to $60 million in stock, although that was before redemptions of 53% in a December extension vote and another 1.7 million shares redeemed ahead of the merger vote. The parties also indicated they were trying to secure PIPE financing.
There is no minimum cash condition to close. Read more.
