Genesis Unicorn Capital in an 8-K today said it entered into a forward-purchase agreement with Vellar Opportunities Fund Master to support the SPAC's acquisition of sustainable waste solutions provider ESGL. Shareholders approved the merger yesterday, although redemptions since Genesis Unicorn's IPO had erased about 99% of the trust.
Vellar intends (but is not obligated) to purchase up to 4.4 million shares of Class A stock from third parties through a broker in the open market. The agreement is structured as an OTC equity prepaid forward transaction. Vellar agreed to be paid the redemption rate for each share it buys. Thirty days after the two-year anniversary of the ESGL closing, Vellar would then pay back the merged company the equivalent of the shares' closing price on the effective valuation date.
The SPAC raised $75 million in a February 2022 IPO with plans to focus on the intersection of the healthcare and technology industries, specifically within the biotechnology and pharmaceutical sectors. Read more.