PowerUp Acquisition and merger partner Visiox Pharmaceuticals amended their agreement to extend the outside date to June 30, while lowering the minimum cash condition to close from $5 million to $1, according to an 8-K.
Other changes to the deal terms include an increase in PowerUp’s indebtedness cap from $1 million to $2 million and elimination of the requirement that PowerUp have net tangible assets of at least $5,000,001 at closing. Additionally, the amendment adds three new covenants, which require Visiox to use its best commercial efforts to complete all labeling and compliance requirements necessary to distribute its current product inventory to the extent reasonably acceptable to Visiox no later than June 30, raise capital in an amount no less than $500,000 on terms reasonably acceptable to PowerUp by June 30 and (iii) from May 30, 2024 until immediately following the closing, not make any expenditures in excess of $1,000 without the express approval of PowerUp, with the exception of ordinary payroll processing.
Redemptions of nearly 94% left the SPAC with about $19 million in trust ahead of an extension vote last year. The SPAC had raised $287.5 million in a February 2022 IPO.
Visiox’s pipeline of an FDA Approved drug candidate, and other late-stage clinical drug candidates, includes treatments for patients with ocular hypertension, open angle glaucoma, and post-surgical inflammation and pain. Read more.
