MedTech (NASDAQ:MTAC) terminated its combination with surgical technology company Memic this morning after adjourning it’s scheduled meeting to complete yesterday to this morning at 11AM.
Yesterday’s meeting received sufficient turnout and affirmative votes, but adjourned without finalizing any business. A number of SPAC deals have fallen through in the current climate of high redemptions and while MedTech did not disclose redemption figures, they were likely the cause of the breakup.
The parties’ combination agreement required MedTech to maintain at least $250 million in cash available and that less than 50% of its trust be redeemed by shareholders. Only five of the 30 votes reported by SPACs so far this year have seen redemptions under 50% and that includes extension votes, which typically see lower figures.
Nonetheless, more optimistic deal terms were not unreasonable when the $655 million combination was announced on August 13, 2021. MedTech also supplemented the transaction with a $76 million PIPE, but adding to PIPEs has become increasingly difficult in the present environment.
MedTech will continue to seek out a combination and has time with transaction deadline set for December 22, 2022.
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