LMF (NASDAQ:LMAO) announced in a press release this afternoon that its shareholders have approved its combination with clinical biotech firm SeaStar Medical at a special meeting held earlier today.
Holders of approximately 79% of LMAO’s issued and outstanding shares cast votes at today’s meeting. The business combination was overwhelmingly approved as the SPAC saw more than 96% of the votes cast were in favor of the transaction.
Although the press release did not disclose redemption amounts, LMAO traded below its trust value of $10.20 throughout its redemption deadline October 14 and closed today at $8.44. The SPAC, however, had been consistently trading above its trust value since the beginning of September.
The parties now expect to close the deal once all closing conditions are satisfied, at which time LMAO will be renamed “SeaStar Medical Holding Corporation” and the company’s common stock and warrants are expected to begin trading on Nasdaq under the new ticker symbols “ICU” and “ICUCW,” respectively.
Just yesterday, LMF entered into a prepaid forward agreement with Vellar Opportunity Fund so that it may purchase shares of LMF common stock, from holders other than LMF or affiliates of LMF, including from holders who have previously elected to redeem. While Vellar does not have an obligation to actually purchase any shares under the agreement, the total “recycled shares” cannot be more than 1,500,000 shares.
Yesterday’s prepaid forward agreement comes nearly two months after LMF entered into a $100 million common stock purchase agreement, a registration rights agreement, and secured a $7 million PIPE.
LMF and SeaStar initially announced their $85 million deal in April 2022. LMF originally brought about $105.7 million into the deal from its current trust and the deal featured a requirement of $15 million unrestricted cash on hand at closing.
Denver-based SeaStar is developing a therapeutic method to address hyper-inflammation with particular applications in treating COVID-19 patients.
ADVISORS
- Maxim Group LLC served as sole financial advisor to SeaStar Medical.
- Skyway Capital Markets LLC served as sole financial and valuation advisor to LMAO.
Considerations for Creating Shareholder Value in a Volatile Market Join us for a virtual panel on December 14, 2022 The current trends of rising interest rates and inflationary cost increases, among other things, have imposed downward pressures on publicly traded equity prices, especially for businesses that became publicly traded via a de-SPAC merger. Please...
Below is a daily summary of links to the latest SPAC news and rumors gathered across the web. Latest SPAC News: Virgin Galactic appoints new top lawyer, Trump Media SPAC rises after investors approve merger deadline extension, and Al Maadeed to be first Qatari to list company on NYSE Virgin Galactic, Preparing for Liftoff,...
PMV Consumer (OTC PINK:PMVC) announced that it is redeeming all non-insider public shares for approximately $10.09 per share, but it will not be dissolving just yet. The SPAC is set to provide written redemption notices to each shareholder and trust proceeds are to be distributed within 30 days of these notices. PMV Consumer will then...
Below is a daily summary of links to the latest SPAC news and rumors gathered across the web. Latest SPAC News: Ex-Marvel chief takes the wheel at Arrival, Paysafe plans reverse stock split, and Dave Inc. to pursue a bank charter Founder of troubled electric van maker Arrival steps aside as CEO The founder...
Digital World (NASDAQ:DWAC) announced late Wednesday that its shareholders have approved amending its charter to allow for automatic three-month extensions of its transaction deadline until September 8, 2023. This brings to close a long drama during which Digital World adjourned the vote without concluding business six times at different meetings in September, October and November....