Jupiter Wellness Acquisition in an 8-K today said it has signed non-redemption agreements for up to $5.6 million in stock to support its propose merger with China-based EV maker Chijet. A shareholder vote on the business combination is scheduled for tomorrow.
The non-redemption agreements are for approximately 530,000 Class A shares, of which approximately 340,000 are held by members of the sponsor.
In consideration for agreeing not to redeem their Class A Shares, the SPAC and Chijet agreed to provide down-side protection to each holder, assuming the deal passes shareholder approval. In the event that within 90 days after the closing, the daily volume-weighted average price of shares for each trading day during any 10 consecutive trading-day period is less than $10. the non-redeeming investors would surrender their stock and receive an equal number of shares in the combined company and $5 per share.
Announced in October, the deal values Chijet’s operating companies at $1.6 billion. Read more.
