Portage Fintech Acquisition entered into a subscription agreement with Polar Multi-Strategy Master Fund, which agreed to lend the SPAC’s sponsor $1.3 million extended in three tranches, according to an 8-K filing. Polar in its discretion could extend the funding by another $200,000.
The funds will be used by the SPAC for working capital.
Polar may elect at the De-SPAC closing to receive repayment in cash or shares of Class A stock at a rate of one share for each $10 of the capital contribution.
In consideration for the subscription agreement Portage will issue to Polar 0.9 shares of Class A Common Stock for each dollar of the capital contribution. Those shares will be subject to no transfer restrictions or any other lock-up provisions, earn outs, or other contingencies.
If Portage liquidates without completing a De-SPAC, any amounts remaining in the sponsor’s or the company’s cash accounts, not including the trust, will be paid to Polar within five days of the liquidation.
Portage in July announced a change in management after selling sponsor shares and warrants to Perception Capital Partners. Read more.
