TradeUP Acquisition Corp. (UPTD) Shareholders Approve Estrella Deal
by Nicholas Alan Clayton on 2023-08-01 at 7:07am

TradeUP (NASDAQ:UPTD) announced in an 8-K this morning that its shareholders approved its combination with Estrella Biopharma at a special meeting yesterday, July 31.

650,580 shares were redeemed in connection with the vote, leaving the SPAC with just 98,074 public shares remaining from its original IPO. Should these results stand, TradeUp will have finished its process with 94.8% of shares redeemed.

In addition to its roughly $1 million in remaining trust capital, the SPAC also secured a $6.8 million PIPE last week. This effectively allowed Estrella lender Eureka Therapeutics to convert about $6.8 million in debts into equity in the form of 680,000 units, each containing one common share and one preferred share.

But, this is still short of the deal’s minimum cash condition, which requires TradeUp to maintain $20 million in cash available unless waived. The SPAC secured a one-year extension to its transaction deadline last month, however, so it has time to make additional moves to shore up this cash situation.

Should the deal go to close as is, these PIPE shares are to be locked up for one year, so they would not ease the low-float scenario that would face Estrella at close. Perhaps in anticipation of this, TradeUp stock spiked up to about +77% in pre-market trading at one point this morning.

What is likely to have an impact is the common stock purchase agreement TradeUp signed with White Lion Capital in April. Under this agreement, White Lion is to purchase up to $50 million in shares in the combined company after close. The maximum investment for agreement would appear to be unavailable even if White Lion may purchase shares recently tendered for redemption.

But, White Lion will nonetheless be issued 250,000 shares shortly after close in return for having made its commitments, which would more than triple Estrella’s liquid public share count.

TradeUp initially announced its $398 million combination with Estrella Biopharma in October 2022. Emeryville, California-based Estrella is developing three potential cancer therapies aimed at improving the effectiveness of T-cell treatments.

Recent Posts
by Kristi Marvin on 2024-04-20 at 11:45am

Terms Tracker for the Week Ending April 19, 2024 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. Passover and school spring break starts next week, which most likely means a slowdown in SPAC filing activity. Although Churchill IX is now rumored to...

by Nicholas Alan Clayton on 2024-04-19 at 3:00pm

Despite a week of general pull-backs in the market, fintech firm Ibotta (NYSE:IBTA) nonetheless took the dive and had a good week debuting via a traditional IPO in the choppy waters. The company, which provides app-based consumer cashback discounts on purchases, priced its IPO at $88, above its proposed range of $76 to $84, and...

by Nicholas Alan Clayton on 2024-04-19 at 7:53am

At the SPAC of Dawn Happy Friday! SPACInsider has unveiled new presets on SPAC Performance accessible via the Data drop-down to easily sort for the highest and lowest performing active SPACs and de-SPACs. On the de-SPAC side, Vertiv (NYSE:VRT) continues to be well ahead of the pack, logging a 710% return by share price adjusted...

by Nicholas Alan Clayton on 2024-04-18 at 11:50am

AGBA (NASDAQ:AGBA) stock is up over +90% this morning following a +211% premarket spike on news it has signed a definitive agreement to combine with social streaming video platform Triller. AGBA, the company itself, was formed by the $555 million combination between a SPAC of the same name and TAG Companies, a financial services firm...

by Nicholas Alan Clayton on 2024-04-18 at 7:57am

At the SPAC of Dawn Since closing its combination with DHC last month, AI customer engagement firm BEN (NASDAQ:BNAI) has rolled out new partnerships with call center and healthcare clients. And, while it faces a fair bit of competition in the chatbot realm, several high-profile institutions have demonstrated that creating one that provides useful services...

logo

Copyright © 2023 SPACInsider, Inc. All Rights Reserved