MedTech Acquisition Corp (MTAC) Adds Convertible Note, Backstop to TriSalus Deal
by Nicholas Alan Clayton on 2023-06-08 at 7:54am

MedTech Acquisition Corp. (NASDAQ:MTAC) announced in an 8-K this morning that it has added a $17.8 million convertible share investment and $2 million backstop to its pending combination with TriSalus Life Sciences.

Investors are to purchase 1,785,502 series A convertible preferred shares at $10 per share. These will provide an 8% per annum dividend, which will be payable by the combined company in a mix of cash or shares to its discretion.

All of these preferred shares will be automatically converted into common shares on the four-year anniversary of the deal’s close at a price pegged to the 10-day VWAP of the combined company’s stock.

The SPAC’s sponsor has also committed that it will together with affiliates backstop at least $2 million and up to $3 million worth of shares depending upon the extent to which they participate in the convertible share investment.

The move comes as MedTech is coming up on a June 12 special meeting to extend its transaction deadline from June 22 to September 22. The sponsor has agreed to contribute $0.04 per share monthly to its trust in connection with the move. MedTech and TriSalus also agreed last month to drop the deal’s minimum cash condition to $35 million from $60 million.

MedTech initially announced its $234 million combination with TriSalus Life Sciences in November. Denver-based TriSalus is developing a range of cancer treatments that utilize the company’s approved and commercialized medical device.

In April, TriSalus presented clinical data from its Phase I trials, which indicated positive results in reducing tumor growth in liver cancer patients.

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