Graf IV in an 8-K said it entered into a securities purchase agreement with the majorirty owner of its merger partner NKGen.
NKMax agreed to purchase $10 million in convertible notes on the merger closing date. The notes mature in 2027 and redeem at 5% in cash or 8% in stock. Upon conversion, the shares includes warrants that can be redeemed for a share at $11.50 each.
A vote on the deal has been adjourned three times, most recently last week, and is now scheduled for Sept. 20.
The SPAC said weeks ago that, although it has already received enough votes to approve the merger, it still needs to obtain additional financing to satisfy the $50 million minimum cash condition to close.
Graf IV raised nearly $172 million in a June 2021 IPO, but redemptions since then had chiseled away at the trust. Additionally, NKMax has put up a $25 million backstop.
The $160 million deal was announced in April.
Graf IV is led by SPAC veteran James Graf.
Based in Santa Ana, CA, NKGen Biotech was established in 2017 and is focused on natural killer cell therapies for the treatment of patients in areas such as neurodegenerative disease, such as Alzheimer’s and Parkinson’s, and oncology. Read more.
