Papaya Growth Opportunity I in an 8-K said it has secured a loan agreement from its sponsor for up to $2.8 million to cover required depsoits into trust for monthly extensions on its deadline. The SPAC said it has borrowed $331,185 of the total.

Shareholders earlier this month approved an extension in monthly increments up until Oct. 19. This puts Papaya's sponsor on the hook for monthly deposits of $325,000 or 3.25 cents a share — whichever is less — into the Papaya I trust.

The SPAC raised $250 million in a January 2022 IPO to search for a target business operating in the software, internet, media, fintech, healthcare IT or consumer industry sectors and to focus on vertical solutions driven by ai, marketplaces, platforms and networks. Read more.

Source: Papaya Growth Opportunity I Secures .8M from Sponsor for Deadline Extensions