Filament Health (NEO: FH) is walking away from a Nasdaq listing and major financing after hitting certain roadblocks related to a merger with a special purpose acquisition vehicle.
The company has elected to terminate an arrangement that was in place for a merger with Jupiter Acquisition Corp (NASDAQ: JAQC), which would have enabled the company to transition to a Nasdaq listing. The arrangement, initially announced back in June, ascribed a US$176 valuation to Filament at the time of announcement. The arrangement, and more specifically the Nasdaq listing, was expected to provide the company with easier access to capital to progress its psychedelic drug development platform.
The termination follows the company on Monday indicating that its special meeting of shareholders saw the resolution related to the merger not brought forward due to changes in a proposed financing of senior secured convertible notes. The proposed material changes, although not described in detail by Filament, were reportedly required as a means of meeting Nasdaq listing requirements.
READ: Filament Health To Merge With SPAC To Obtain Nasdaq Listing
The financing, provided through an affiliate of Helena Partners, was to provide the company with US$14.4 million in funding. The funds were to be provided in six equal tranches of US$2.4 million, the first two of which were to be delivered this month.
While the company previously indicated it would conduct a new special meeting of shareholders in the new year, the parties have evidently decided that the effort is not worth the hassle and have instead elected to terminate the arrangement entirely, including the SPAC merger.
Filament Health last traded at $0.095 on the Neo.
Information for this briefing was found via Sedar and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
