Mergers & Acquisitions ·
Ribbon Acquisition Corp. entered into a Forward Purchase Agreement, Subscription Agreement, Standby Equity Purchase…
RIBBRibbon Acquisition Corp.
Ribbon Acquisition Corp. entered into a Forward Purchase Agreement, Subscription Agreement, Standby Equity Purchase Agreement (SEPA), and Convertible Promissory Note with Meteora Select Trading Opportunities Master, LP in connection with its business combination with DRC Medicine Ltd. The Investor agreed to purchase up to 4,100,000 shares at the redemption price, funded by a $1,212,121 pre-paid advance secured by a convertible note bearing no interest but subject to an 18% default rate and a 7% payment premium. The SEPA provides a $100 million equity commitment with a 1.75% ($1,750,000) fee payable in cash or shares. Additionally, shareholders deposited 9.9% of post-combination common stock into escrow to secure the note obligations. Ribbon Acquisition Corp. is a blank check company formed for effecting a merger, capital stock exchange, asset acquisition, or other business combination with an operating business.