Item 1.01 Entry into a Material Definitive Agreement.
Business Combination Agreement
On
Intrinsic is a preclinical-stage therapeutics company leveraging synthetic biology-manufactured human milk oligosaccharides as new medicines to treat large patient populations underserved by current treatment options.
The Merger, the Business Combination Agreement and the transactions contemplated thereby were unanimously approved and declared advisable by the board of directors of each of the Company and Intrinsic. The Company's board of directors also resolved to recommend approval of the Business Combination Agreement and related matters by the stockholders of the Company.
Consideration and Structure
At the effective time of the Merger (the "Effective Time"), (i) each outstanding
share of common stock, par value
Representations, Warranties and Covenants
The parties to the Business Combination Agreement have agreed to customary representations and warranties for transactions of this type. In addition, the parties to the Business Combination Agreement agreed to be bound by certain customary covenants for transactions of this type, including, among others, covenants with respect to the conduct of Intrinsic, the Company and their respective subsidiaries during the period between execution of the Business Combination Agreement and Closing. The representations, warranties, agreements and covenants of the
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parties set forth in the Business Combination Agreement will terminate at Closing, except for those representations, warranties, covenants and agreements that, by their terms, contemplate performance after Closing. Each of the parties to the Business Combination Agreement has agreed to use its reasonable best efforts to take or cause to be taken all actions and things necessary to consummate and expeditiously implement the Merger.
Conditions to Closing
Under the Business Combination Agreement, the obligations of the parties to
consummate the Merger are subject to the satisfaction or waiver of certain
customary closing conditions of the respective parties, including, without
limitation: (i) the approval and adoption of the Business Combination Agreement
and transactions contemplated thereby by requisite vote of the Company's
stockholders (the "Company Stockholder Approval") and Intrinsic's stockholders
(the "Intrinsic Stockholder Approval"); (ii) the expiration or termination of
the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements
Act of 1976, as amended; (iii) the absence of a Company Material Adverse Effect
or SPAC Material Adverse Effect (each, as defined in the Business Combination
Agreement) since the date of the Business Combination Agreement that is
continuing; (iv) after giving effect to the transactions contemplated by the
Business Combination Agreement, the Company has net tangible assets of at least
Termination
The Business Combination Agreement may be terminated under certain customary and
limited circumstances at any time prior to the Closing, including, without
limitation, (i) by the Company or Intrinsic, if (a) the Closing has not occurred
by
If the Business Combination Agreement is validly terminated, none of the parties to the Business Combination Agreement will have any liability or any further obligation under the Business Combination Agreement other than customary confidentiality obligations, except in the case of Willful Breach or Fraud (each, as defined in the Business Combination Agreement). . . .
Item 7.01 Regulation FD Disclosure.
On
The information in this Item 7.01 and Exhibits 99.1 and 99.2 attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act or the Exchange Act, except as expressly set forth by specific reference in such filing.
Additional Information about the Business Combination and Where to Find It
This communication relates to the proposed business combination by and between
the Company, Intrinsic and Merger Sub. In connection with the proposed business
combination, the Company intends to file with the
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BEFORE MAKING ANY VOTING OR INVESTMENT DECISION, THE COMPANY'S STOCKHOLDERS AND OTHER INTERESTED PARTIES ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS WHEN IT BECOMES AVAILABLE AND ANY AMENDMENTS THERETO AND ANY OTHER DOCUMENTS FILED BY THE COMPANY WITH THE SEC IN CONNECTION WITH THE PROPOSED BUSINESS COMBINATION OR INCORPORATED BY REFERENCE THEREIN IN THEIR ENTIRETY BEFORE MAKING ANY VOTING OR INVESTMENT DECISION WITH RESPECT TO THE PROPOSED BUSINESS COMBINATION BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED BUSINESS COMBINATION AND THE PARTIES TO THE PROPOSED BUSINESS COMBINATION.
The definitive proxy statement/final prospectus will be mailed to stockholders
of the Company as of a record date to be established for voting on the proposed
business combination. Additionally, the Company will file other relevant
materials with the
No Offer or Solicitation
This communication is for information purposes only and is not intended to and
does not constitute, or form part of, an offer, invitation or the solicitation
of an offer or invitation to purchase, otherwise acquire, subscribe for, sell or
otherwise dispose of any securities, or the solicitation of any vote or approval
in any jurisdiction, pursuant to the proposed business combination or otherwise,
nor shall there be any sale, issuance or transfer of securities in any
jurisdiction in contravention of applicable law. The proposed business
combination will be implemented solely pursuant to the Business Combination
Agreement, by and between the Company, Merger Sub and Intrinsic, dated
Participants in Solicitation
This communication may be deemed solicitation material in respect of the
proposed business combination. The Company and Intrinsic and their respective
directors and executive officers, under
Forward-Looking Statements
All statements other than statements of historical facts contained in this communication are forward-looking statements. Forward-looking statements may generally be identified by the use of words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "should," "would," "plan," "project," "forecast," "predict," "potential," "seem," "seek," "future," "outlook," "target" or other similar expressions (or the negative versions of such words or expressions) that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding the
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financial position, business strategy and the plans and objectives of management for future operations including as they relate to the proposed business combination and related transactions, pricing and market opportunity, the satisfaction of closing conditions to the proposed business combination and related transactions, the level of redemptions by the Company's public stockholders and the timing of the completion of the proposed business combination, including the anticipated closing date of the proposed business combination and the use of the cash proceeds therefrom. These statements are based on various assumptions, whether or not identified in this communication, and on the current expectations of Intrinsic's and the Company's management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and may differ from such assumptions, and such differences may be material. Many actual events and circumstances are beyond the control of Intrinsic and the Company.
These forward-looking statements are subject to a number of risks and uncertainties, including (i) changes in domestic and foreign business, market, financial, political and legal conditions; (ii) the inability of the parties to successfully or timely consummate the proposed business combination, including the risk that any required regulatory approvals are not obtained, are delayed or are subject to unanticipated conditions that could adversely affect the combined company or the expected benefits of the proposed business combination, or that the approval of the stockholders of the Company is not obtained; (iii) the ability to maintain the listing of the combined company's securities on the stock exchange; (iv) the inability to complete any private placement financing, the amount of any private placement financing or the completion of any private placement financing with terms unfavorable to you; (v) the risk that the proposed business combination disrupts current plans and operations of the Company or Intrinsic as a result of the announcement and consummation of the proposed business combination and related transactions; (vi) the risk that any of the conditions to closing of the business combination are not satisfied in the anticipated manner or on the anticipated timeline or are waived by any of the parties thereto; (vii) the failure to realize the anticipated benefits of the proposed business combination and related transactions; (viii) risks relating to the uncertainty of the costs related to the proposed business combination; (ix) risks related to the rollout of Intrinsic's business strategy and the timing of expected business milestones; (x) the effects of competition on Intrinsic's future business and the ability of the combined company to grow and manage growth, establish and maintain relationships with customers and . . .
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits Exhibit No. Description 2.1† Business Combination Agreement, dated as ofOctober 30, 2022 , by and amongPhoenix Biotech Acquisition Corp. ,OM Merger Sub, Inc. andIntrinsic Medicine, Inc. 10.1 Sponsor Support Agreement, dated as ofOctober 30, 2022 , by and amongPhoenix Biotech Sponsor, LLC ,Phoenix Biotech Acquisition Corp. ,Intrinsic Medicine, Inc. and certain investors. 10.2 Company Stockholder Support Agreement, dated as ofOctober 30, 2022 , by and amongPhoenix Biotech Acquisition Corp. ,Intrinsic Medicine, Inc. andAlexander Martinez . 10.3 Company Stockholder Support Agreement, dated as ofOctober 30, 2022 , by and amongPhoenix Biotech Acquisition Corp. ,Intrinsic Medicine, Inc. andJason Ferrone . 10.4 Company Stockholder Support Agreement, dated as ofOctober 30, 2022 , by and amongPhoenix Biotech Acquisition Corp. ,Intrinsic Medicine, Inc. andEmil Chuang . 10.5 Company Stockholder Support Agreement, dated as ofOctober 30, 2022 , by and amongPhoenix Biotech Acquisition Corp. ,Intrinsic Medicine, Inc. andDustin Crawford . 99.1 Press Release, datedOctober 31, 2022 . 99.2 Investor Presentation, datedOctober 2022 .
† Certain of the exhibits and schedules to this exhibit have been omitted in
accordance with Regulation S-K Item 601(b)(2). The Registrant agrees to furnish supplementally a copy of all omitted exhibits and schedules to theSEC upon its request.
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