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Priveterra Acquisition Corporation (PMGM) Postpones Extension Vote Again
by Nicholas Alan Clayton on 2023-02-06 at 8:41am

Priveterra Acquisition Corp. (NASDAQ:PMGM) announced in an 8-K this morning that it has rescheduled its extension vote for a second time, now set for noon, February 10.

The SPAC is also now seeking pulling back the final length of the extension from September 11 to August 11. The sponsor is offering to contribute to the trust the lesser of $240,000 or $0.12 per share for the first three months of this extension. If it has not completed its combination with AEON Biopharma by May 11, then it will further contribute the lesser of $80,000 or $0.04 per share per month thereafter.

These contributions are to come in the form of unsecured promissory notes repayable once the combination is completed. If Priveterra does not complete a deal by the extended date, then these contributions will either be paid by funds outside the trust or will be forfeited or forgiven.

Shareholders have until February 8 to modify their redemption decisions in connection with the vote.

Priveterra inked its $201.8 million business combination with drug developer AEON on December 13, and now faces a completion deadline of February 11. Irvine, California-based AEON is working on an injection-based migraine treatment to compete with Botox for chronic and frequent sufferers.

Earlier this month, the SPAC announced it secured $20 million in commitments from existing investors in connection to its business combination. Priveterra originally brought about $276 million into the deal through its current trust but aside from this month’s funding, it has not yet supplemented this with other committed sources of capital. It must maintain at least $45 million in cash available in order for the deal to close.

 

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