Altitude Acquisition Corp. (NASDAQ:ALTU) announced this morning that it has signed a non-binding letter of intent (LOI) to combine with a global medical device manufacturer.

The SPAC originally teased this deal on October 4, the same day as its redemption deadline, when it announced it was in negotiations to sign a LOI with the medical device manufacturer.

For the most part, the terms are still the same as disclosed in previous negotiations. The proposed transaction still values the target at an enterprise value of $480 million, but the parties have increased the minimum cash closing condition from $20 million to $30 million.

The target still remains unnamed, but Altitude disclosed that it is a leader in its medical device field with a product that is commercially available and approved for use in over 30 countries. The medical manufacturer is currently seeking additional expansion in the U.S. and globally.

Under the terms of the LOI, Altitude and the Target would be become a combined entity, with the target’s existing equity holders rolling 100% of their equity into the combined public company.

Altitude expects to announce additional details regarding the target and the proposed business combination once a definitive merger agreement is executed, which is expected to occur in the first quarter of 2023.

The SPAC announced in June that it entered into a non-redemption agreement alongside certain shareholders who supported an earlier proposal to extend the time ALTU has to complete its initial business combination. At that time, shareholders holding a total of 1,250,000 shares of Class A common stock, representing $12,500,000 of ALTUU’s trust account, agreed not to redeem their shares in connection with the extension and to vote in favor of the extension as well as the initial business combination, in exchange for a cash payment of $0.033 per share per month for the four-month extension.

The non-redemption agreement was then expanded on October 6, to cover about $15 million worth of shares.

Altitude initially raised $261 million at IPO on December 8, 2020 and set out to combine with a travel technology business valued at a $1 billion or more. However, post ALTU’s June and October extension vote, the trust account is now valued at approximately $16.8 million due to redemptions.

Since Altitude’s deal is not at the “definitive agreement” stage, and is still just a non-binding LOI, SPACInsider will not consider this deal fully “announced”. As such, it will remain in the “Searching” category until a definitive agreement is signed.