Priveterra Acquisition Corporation (PMGM) Boosts AEON Biopharma Funding to $125M
by Nicholas Alan Clayton on 2023-06-30 at 9:40am

Priveterra (NASDAQ:PMGM) announced this morning what it has been cooking up through seven adjournments of its special meeting to complete its combination with  AEON Biopharma – up to $105 million in new funding through a mix of facilities.

Of this, $20 million is to follow the terms of the deal’s existing A-1 notes, joining $20 million in investments made by existing AEON investors at $7 per share. A new investor ACM ASOF VIII has also agreed to purchase 1,000,000 shares for $7 per share and will be further compensated with 75,000 newly issued shares.

Importantly, this $47 million in note financing alone should be enough to cover the transaction’s $45 million minimum cash condition. But, Priveterra nonetheless announced it would adjourn its special meeting an eighth time from 4 pm ET today to 4:30 pm ET July 3 to continue talk to shareholders.

This is something of an awkward meeting time late in the day sandwiched between a weekend and the Fourth of July holiday. Priveterra also has until August 11 to complete its deal, so SPACland would likely not be shocked at a ninth rain check next week.

Nonetheless, the bulk of the new financing announced today is to potentially come in the form of forward-purchase agreements with ACM ARRT and Polar Multi-Strategy Fund. These investors are to purchase up to 7,500,000 shares in an OTC prepaid equity arrangement.

These investors will be compensated for this on a per share basis at Priveterra’s redemption rate shortly after close. From then on, these investors may sell shares and terminate the agreements coverage of them. At such times they are to pay AEON the lower of $7 or 30-day VWAP per share.

The higher share price for the forward purchase agreements could counteract the possibility that the note investments at $7 could trigger Priveterra’s $9.20 Crescent Term. Such purchases would have to represent more than 60% of total equity proceeds and the SPAC’s stock would have to hit a pre-close 20-day VWAP under $9.20 in order for this to take effect.

Priveterra inked its $201.8 million business combination with drug developer AEON on December 13. Irvine, California-based AEON is working on an injection-based migraine treatment to compete with Botox for chronic and frequent sufferers.


Recent Posts
by Kristi Marvin on 2023-12-09 at 11:45am

Terms Tracker for the Week Ending December 8, 2023 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. Well that escalated quickly. While last week was quiet, this week was far busier. SPACs saw one IPO start trading after pricing on Friday of...

by Marlena Haddad on 2023-12-08 at 1:59pm

Mobiv Acquisition Corp. (NASDAQ:MOBV) announced this afternoon that it has closed its combination with EV motorcycle-maker SRIVARU. Shareholders originally approved the deal at a special meeting held back on September 28, but at that time, the parties expected the transaction to take just a week to close. Redemptions whittled Mobiv’s IPO share pool of 10,005,000 down...

by Nicholas Alan Clayton on 2023-12-08 at 11:12am

Achari Ventures I (NASDAQ:AVHI) has entered into a definitive agreement to combine with medtech firm Vaso Corporation at an equity value of $176 million, or 19.5x its 2022 adjusted EBITDA. Wuxi, China-based Vaso provides IT services and sales support to medical device manufacturers. The combined company is expected to trade on the Nasdaq under the...

by Marlena Haddad on 2023-12-08 at 10:27am

EF Hutton Acquisition Corp. I (NASDAQ:EFHT) announced this morning that its shareholders have approved its business combination with E.C.D. Auto Design. At the meeting, there were 5,089,203 shares of common stock, representing approximately 76.82% of the issued and outstanding shares of common stock, present. In connection with the meeting, the company’s stockholders holding 3,470,945 shares,...

by Marlena Haddad on 2023-12-08 at 9:42am

Legato Merger Corp. III (NYSE:LEGT) filed for a $175 million IPO yesterday afternoon, becoming the fourth SPAC to file this week. While the other three SPACs that filed their S-1s earlier this week intend to pursue targets in the financial services and biotech industries, Legato III, similar to the earlier Legato SPACs, will focus on...


Copyright © 2023 SPACInsider, Inc. All Rights Reserved