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Aesther Healthcare (AEHA) Terminates United Gear Deal
by Marlena Haddad on 2022-07-19 at 8:31pm

Aesther Healthcare Acquisition Corp. (NASDAQ: AEHA) announced this afternoon that it has mutually terminated its combination agreement with automotive component manufacturer United Gear & Assembly.

The termination comes just two weeks after AEHA secured a common stock purchase agreement and not even two months after deal announcement.  And while today’s 8-K did not disclose the reason for the breakup, it is likely that unfavorable market conditions played a significant role.

Aesther originally brought an estimated $105 million into the deal from its current trust and did not supplement the deal with a PIPE, but secured a common stock purchase agreement of up to $50 million earlier this month. This purchase agreement will also be terminated upon the termination of the merger agreement.

Going forward, AEHA intends to continue to identify and pursue a business combination with an appropriate target. Additionally, AEHA still has two months left on its clock, but can automatically extend their deadline two times for three-months each by contributing $0.10 per share to trust. AEHA raised $100 million at IPO last year on September 14, 2021 and initially intended to combine with a pharmaceutical or healthcare-focused business that has strong access to transformative technology. The SPAC is led by Chairman and CEO Suren Ajjarapu and CFO and Secretary Howard A. Doss.

Aesther Healthcare announced its business combination with United Gear just several weeks ago on May 27, right before the Memorial Day weekend. Hudson, Wisconsin-based United Gear is a subsidiary of United Stars Holdings, focused on manufacturing small to medium-sized precision gears and shafts for a variety of industries.

 

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