GigCapital5 (GIA) Drops Lawsuit against QT Imaging
by Nicholas Alan Clayton on 2023-09-22 at 7:40am

GigCapital5 (NYSE:GIA) announced in an 8-K that it will drop its lawsuit against its merger target QT Imaging and the two sides will continue working toward close under a slightly amended business combination agreement.

Things got messy earlier this month as GigCapital5 filed its suit in Delaware court a day before the two sides’ outside date, claiming QT Imaging failed to abide by its obligations and broke exclusivity by engaging with third-party suitors. QT Imaging for its part attempted to terminate the deal, a move that GigCapital5 rejected.

The two now appear to have buried the hatchet and have extended the deal’s outside date to December 31 and eliminated its minimum cash condition.

At announcement, GigCapital5 said it would aim to raise $26 million in outside capital for the combination and had up until now signed a non-binding term sheet for a $10 million advance loan with Yorkville Advisors Global.

The SPAC also has about $31.7 million in its trust, but must get through a September 28 extension vote in order for the process to move forward.

Under the most recent changes, GigCapital5’s sponsor has agreed to fund the first portion of the Yorkville pre-paid advance and will issue convertible promissory notes of $5.5 million and $4.5 million should that facility be adopted.

The two sides initially announced their $219 million combination in December 2022. Novato, California-based QT Imaging has developed a less-invasive scanning device for mammograms that it has begun to commercialize in the US, Europe and China.

 

Recent Posts
by Nicholas Alan Clayton on 2024-02-26 at 1:45pm

News and Rumors PR: Medtech firm Agiliti (NYSE:AGTI) has agreed to be acquired by an affiliate of private equity firm Thomas H. Lee Partners (THL) at $10 per share and an enterprise value of $2.5 billion. This represents a 43% premium over the company’s 90-day VWAP and returns it to 100% ownership by THL five...

by Nicholas Alan Clayton on 2024-02-26 at 7:42am

At the SPAC of Dawn The last week of February is to host a moderate amount of SPAC votes and also the potential for some market-moving data releases. Shareholders for five SPACs are to consider extensions this week and seven more SPACs have scheduled completion votes. But, among the more interesting events on the agenda...

by Kristi Marvin on 2024-02-24 at 11:45am

Terms Tracker for the Week Ending February 23, 2024 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. As expected, new issuance filings were quiet this week.  But, deal announcements were surprisingly active.  Four more SPACs announced combinations in a shortened holiday week...

by Nicholas Alan Clayton on 2024-02-23 at 2:26pm

Pyrophyte (NYSE:PHYT) faced a major regulatory setback for its combination with mining firm Sio Silica this week, but a recent analogous SPAC deal could provide some encouragement for a path forward. Sio Silica is working to develop a high-grade silica mine in the Vivian Sands outside Winnipeg, Canada and it inked the $708 million combination...

by Nicholas Alan Clayton on 2024-02-23 at 1:37pm

News and Rumors JD Supra: Securities class action lawsuits against SPACs and de-SPACs increased only slightly in 2023 with 27 after 2022 saw 24 and 2021 – 33. Lawsuits concerning the de-SPACing process itself dropped precipitously, however, representing just 21% of cases as compared to 69% in the previous two years and 80% in 2020....

logo

Copyright © 2023 SPACInsider, Inc. All Rights Reserved