Blank-Check Amanat to Merge With Obesity Drug Developer Corxel US
AMAN is trading near its 52-week low of $9.98 (2.4% above the low).
Summary
Amanat Acquisition Corp., a small-cap SPAC trading near its 52-week low, signed a definitive business combination agreement with Corxel US to create a publicly listed obesity-focused biopharmaceutical company, with Corxel US becoming a wholly owned subsidiary of the combined public company upon completion. The combined public company will operate under a new name and have its common stock listed on the Nasdaq Capital Market under a new ticker symbol. The transaction includes commitments for a concurrent, oversubscribed PIPE expected to result in total gross proceeds of about $300M, in addition to about $75M held in Amanat's trust account, and those $300M PIPE subscriptions can be reduced one-for-one by PIPE investors buying Amanat Class A shares in the market or privately before the shareholder meeting. The deal carries a $200M minimum cash closing condition and $10M-$50M termination fees payable by Corxel to Amanat. Current management of Corxel US is expected to continue leading Corxel US while a search for a U.S.-based CEO is underway, and a new CEO of the combined company is expected to be hired prior to or upon closing. The deal follows the August 13 10-Q, which showed only $31,732 of quarterly net income and the forfeiture of 281,250 founder shares after the over-allotment expired unexercised — a shell with no operating revenue.
Updated with an SEC 425 filing · What changed
Updates
· SEC 425 — The deal carries a $200M minimum cash closing condition and $10M-$50M termination fees payable by Corxel to Amanat.
· SEC 8-K — The $300M PIPE subscriptions can be reduced one-for-one by PIPE investors buying Amanat Class A shares in the market or privately before the shareholder meeting.
At the time of this announcement, AMAN was trading at $10.22 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $101.8M. The 52-week trading range was $9.98 to $10.79. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.