Larkspur Health (NASDAQ:LSPR) announced this afternoon that it has secured commitments of $10 million for its proposed merger with specialty biopharmaceutical company ZyVersa.

Of that $10 million, $8.5 million will be a PIPE investment in the form of contingent financing that will provide for the purchase of Convertible Preferred Stock of LSPR. Larkspur Health had originally planned to supplement the deal with a $7 million PIPE, which was also contingent upon ZyVersa obtaining additional interim financing, but the SPAC was able to bring in $1.5 million more than expected.

The remaining amount of today’s announced capital is part of a bridge, an interim finance round of approximately $1.5 million. The commitment is from an offering of Series A Convertible Preferred Stock of ZyVersa which will convert into ZyVersa common stock in connection with the transaction.

Capital raised in the bridge will be used to support the advancement of research and development programs and ongoing ZyVersa operations and, along with funds from the PIPE Investment, will be used by the combined company following the business combination for similar purposes.

The PIPE Investment is anticipated to close simultaneously with the closing of the transaction, which is still expected to take place in the fourth quarter of 2022. Upon closing of the deal, Larkspur is expected to be renamed ZyVersa Therapeutics, Inc. and will continue to operate under the ZyVersa management team, led by Stephen C. Glover, Co-Founder, CEO, and Chairman. The combined company’s common stock is expected to be listed on NASDAQ under ticker symbol “ZVSA.”

The SPAC announced its $108.9 million deal with ZyVersa just a few months ago on July 21, 2022. Weston, Florida-based ZyVersa is developing clinical and preclinical treatments for a variety of inflammatory diseases affecting the kidneys and nervous system.