ARYA Sciences Acquisition Corp IV (NASDAQ:ARYD), a special purpose acquisition company, has entered into a financial agreement with its sponsor, ARYA Sciences Holdings IV, securing a $150,000 unsecured convertible promissory note.
Announced on Tuesday, the loan is designed to support general corporate functions and fund deposits into the company’s trust account for extending the period to complete a business combination.
The agreement, dated June 28, 2024, allows ARYA Sciences Acquisition Corp IV to convert the loan into Class A ordinary shares at $10.00 per share, at the discretion of the sponsor. These shares will have the same terms as the private placement shares issued during the company's initial public offering on March 2, 2021.
The working capital loan carries no interest and is repayable upon the successful execution of a business combination. If the company does not achieve a business combination, the note will be settled from funds outside of the trust account or may be forfeited or forgiven.
Alongside this financial arrangement, the company has also announced the approval of a fourth one-month extension to complete its initial business combination, now set for August 2, 2024. To facilitate this extension, ARYA Sciences Acquisition Corp IV has drawn $111,000 from the promissory note to deposit into the trust account and an additional $24,000 for working capital purposes.
The details of the promissory note and the extension are based on the company's recent SEC filing, which provides investors with the latest financial arrangements and strategic efforts by ARYA Sciences Acquisition Corp IV to secure additional time and resources for its business combination objectives.
In other recent news, ARYA Sciences Acquisition Corp IV is advancing its business combination with Adagio Medical, Inc., as disclosed in a recent SEC filing. The merger, initially announced in February, involves ARYA and several subsidiaries, including Aja Holdco, Inc., ARYA Merger Sub, and Company Merger Sub. The companies have provided an investor presentation detailing the strategic rationale for the combination, expected benefits, and future prospects of the merged entity, to be known as New Adagio.
The presentation also outlines the anticipated financial implications, including the enterprise value of New Adagio, the proposed ownership structure, and the projected cash runway through 2025. However, the filing emphasizes that forward-looking statements are based on estimates and assumptions and are not guarantees of future performance.
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