BlueRiver Acquisition Corp. (NYSE:BLUA) announced in an 8-K filing this afternoon that it has entered into a non-redemption agreement with one or more unaffiliated third parties after signing a non-binding letter of intent (LOI) yesterday.
Under the non-redemption agreement, the third parties agreed not to redeem an aggregate of 200,000 shares of BLUA. In exchange for the commitment not to redeem such shares, BlueRiver’s sponsor agreed to transfer an aggregate of 50,000 shares of the company to the investors immediately following the completion of the business combination.
BlueRiver currently faces a completion deadline of February 2, but is hoping to gain shareholder approval at its upcoming meeting on January 31 to extend its timeline to August 2. Although the parties have the non-redemption agreement in hand, the SPAC does not expect it to increase the likelihood that its extension proposal will be approved by shareholders, but will increase the amount of funds that remain in the company’s trust account following the meeting.
The agreement comes just a day after the company announced that it has signed a non-binding LOI with a target company. BlueRiver kept the details on the possible merger to a minimum, but disclosed that the target is focused on the medical technology sector.
Additionally, if the extension is implemented, the company plans to liquidate the U.S. government treasury obligations or money market funds held in the trust and thereafter to maintain the funds in an interest-bearing demand deposit account at a bank. Interest on the deposit account is currently 2.5% per annum.
Since BLUA’s deal is not at the “definitive agreement” stage, and is still just a non-binding LOI, SPACInsider will not consider this deal fully “announced”. As such, it will remain in the “Searching” category until a definitive agreement is signed.
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...
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...
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,...
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...
At the SPAC of Dawn This week ends with an unusually busy earnings calendar as 172 US-listed companies report quarterly figures today. Among them is Exela Technologies (NASDSAQ:XELA), which completed a combination with Quinpario 2 in 2017. The billing software company has gone on to do another SPAC deal on November 29, this time spinning...