Chenghe Acquisition Adds FPA to Taiwan Color Optics Deal, Offsetting Heavy Redemptions

Chenghe Acquisition in an 8-K said it secured a forward purchase agreement with Meteroa funds for 6 million shares, or up to 9.9% of shares outstanding. This follows shareholder approval of the SPAC's merger with Taiwan Color Optics, although total redemptions since the SPAC's have removed almost all of the Chenghe trust.

Chenghe in the filing said 8,133,060 shares were redeemed ahead of the merger vote, removing just over $90 million from the trust. Chenghe originally raised $100 million in an April 2022 IPO to focus on financial technology or technology-enabled financial service companies, including artificial intelligence, big data, cloud and blockchain-related initiatives in Asian markets. 

The parties had agreed to waive lock-up provisions and the closing equity Chenghe had been expected to receive.

Founded in 2009, TCO is an optical 3D sensing technology company that is primarily involved in the design, manufacture and sale of laser light source modules and integration chips. Read more.


Source: Chenghe Acquisition Adds FPA to Taiwan Color Optics Deal, Offsetting Heavy Redemptions