Genesis Growth Tech Acquisition filed a proxy detailing its proposed business combination agreement with digital therapeutics firm Mind Maze for $21 million.
Founded in 2012, MindMaze is engaged in brain technology with a mission to accelerate humanity’s ability to recover, learn and adapt. With over a decade of work at the intersection of neuroscience, biosensing, engineering, mixed reality and artificial intelligence, the company on its website says it has enhanced the recovery potential of patients with neurological diseases.
Deal terms include a Patent Purchase Agreement between the SPAC’s sponsor and MindMaze, including Assigned Patent Rights and all other intellectual property rights acquired by the sponsor under the Patent Purchase Agreement. The SPAC will pay to the sponsor $1,000 and will assume and agree to perform and discharge all of the sponsor’s obligations under the Patent Purchase Agreement, including the obligation to pay $21 million to MindMaze by May 31 and the obligation to share 50% of the gross amounts received under the Patent Purchase Agreement with MindMaze after the threshold amount of $44 million is received by Genesis SPAC. The Patent Purchase Agreement grants a worldwide royalty-free license back to MindMaze.
The SPAC’s sponsor currently owns 5,850,625 Class B shares, representing approximately 91.3% of the outstanding shares, and 8,875,000 warrants to purchase 8,875,000 Class A shares at $11.50 each.
The SPAC’s shareholders in September approved a deadline extension to Dec. 13, 2024. Redemptions were negligible at that time. However, Genesis Growth’s trust was nearly obliterated by redemptions of Class A stock back in March 2023 ahead of an earlier extension vote.
Then, in August, the SPAC mutually terminated a deal with NextTrip.
Genesis Growth Tech originally raised $220 million in a December 2021 IPO. Read more.
