TradeUP Acquisition Secures $6.8M to Support Estrella Deal

TradeUP Acquisition in an 8-K today said it entered into a binding term sheet with Suma Ventures and Eureka Therapeutics to support the proposed merger with Estrella Biopharma.

Terms call for Eureka Therapeutics to acquire certain Estrella payables for $6.8 million in exchange for securities of Eureka owned by the investor. At closing, TradeUP will issue 680,000 Class B units to the investor. Eureka, in exchange, will agree to waive the indebtedness, and release Estrella and the post-merger company from all obligations under the indebtedness.

TradeUP shareholders are scheduled to vote Monday on the acquisiton.

At deal announcement in October, terms called for Estrella Biopharma to receive the SPAC's $45.4 million of cash held in trust at that time. However, ahead of a January extension vote, redemptions erased about 78% of the SPAC's cash. 

Estrella is a preclinical-stage biopharmaceutical company focusing on cancer therapeutics. Read more.

Source: TradeUP Acquisition Secures .8M to Support Estrella Deal