Capstar (NYSE:CPSR) announced in an 8-K filing this morning that all but $3.4 million has been removed from its trust via redemptions ahead of its vote to complete its transaction with biotech firm Gelesis.
A total of 27,260,179 shares were redeemed and this included shares held by PIPE investors. Capstar noted that GCCU VI LLC and TOCU XXIX LLC redeemed 1,000,000 shares each, although each have also agreed to purchase 1,750,000 shares via the transaction’s PIPE. But, Capstar already secured the deal’s completion in regards to its minimum cash condition by adding a backstop in late December.
In the end, $11,599,270 will be pulled into the transaction out of the backstop that was designed to provide up to $15 million. As envisaged by the agreement, backstop investors are to receive a larger proportion of shares at close — 1,983,750 — than they purchased through the backstop.
Capstar shareholders are set to vote to complete the deal tomorrow, January 11. The SPAC slid about 2% on its January 7 redemption deadline, but it is receiving upwards interest in the premarket potentially in hopes that it will present a low float opportunity.
The parties initially announced their deal on July 19. Boston-based Gelesis is advancing a series of therapies for weight management and chronic gut conditions with pills designed to fill the stomach ahead of meals that mimic food to but do not add calories.