Phoenix Biotech Adds PIPE, Adjusts CERo Deal Terms

Phoenix Biotech Acquisition said it added a $2 million to support its proposed merger with CERo Therapeutics. The parties also tweaked transaction terms to increase the number of shares CERo stockholders would be paid, from 4,651,704 shares to 5 million shares. That's in addition to up to 1.2 million shares issuable upon satisfaction of certain earn-out conditions and 382,651 shares issuable upon exercise of rollover options or .

The deal was announced last June at a pro forma equity capitalization of $145 million.

The parties also removed the minimum cash condition to close and modified y the stock-price based milestones, resetting the First Level Earnout from $12.50 to 125% of the conversion price of Series A Preferred Stock and adjusting the trading price condition for the Second Level Earnout Target from $15 to 150% of the Conversion Price of the Series A Preferred Stock upon reset of the conversion price.

CERo is an immunotherapy company seeking to advance the next generation of engineered T cell therapeutics that employ phagocytic mechanisms.

Aassuming no redemptions, CERo would expect to receive up to $13.7 million of cash held in the SPAC's trust at deal announcement. The business combination reflects a pre-money equity value of $50 million for CERo. Read more.


Source: Phoenix Biotech Adds PIPE, Adjusts CERo Deal Terms