A private equity firm has filed suit against QT Imaging, hoping to force the Novato, CA-based ultrasound developer to complete a SPAC deal announced last year.
GigCapital5 in its own lawsuit against QT Imaging alleges breaches of their merger agreement, while rejecting the target's attempt to terminate the deal.
The SPAC filed the lawsuit in the Court of Chancery of the State of Delaware against QT Imaging and its primary stockholder seeking, among other things, to compel the target to act in accordance with its obligations under the agreement.
GigCapital5 further noted that although the Sept. 8 closing date has passed — which is the basis for QT Imaging's attempt to quit the deal — the SPAC said it is the fault of the target that the deal was not completed within deadline.
A trial is set to begin Nov. 20.
gigcapital accuses QT Imaging of engaging in discussions with a third party that are “contrary to the exclusivity provision” of their agreement, reports Radiology Business.
“Because of the delays caused by QT Imaging's actions, the company will not have sufficient time to complete the QTI business combination prior to Sept. 28,” and sec filing states. That's the SPAC's termination deadline.
GigCapital5 seeks an extension from its shareholders and intends to keep pursuing the QT lawsuit. Read more.