BurTech Acquisition Corp. (NASDAQ:BRKH), a special purpose acquisition company, is actively seeking non-redemption agreements with certain accredited investors ahead of its upcoming special meeting slated for December 23, 2024.
The initiative aims to secure funds in the company's trust account by persuading these shareholders not to redeem their shares at the meeting.
The proposed merger with Blaize, Inc., disclosed on December 22, 2023, and amended several times throughout 2024, is pending shareholder approval. If the merger is successful, Blaize will become a wholly owned subsidiary of BurTech.
Investors who enter into non-redemption agreements would retain their shares and, in return, receive an equal number of shares in the post-merger entity, dubbed New Blaize Earnout Shares. These shares would be granted based on a performance trigger: if the trading price of the combined company's common stock closes at $12.50 for 20 out of 30 consecutive trading days.
The company clarified that neither the Sponsor nor its affiliates are eligible to receive New Blaize Earnout Shares. While these agreements are not expected to influence the approval of the merger, they are anticipated to increase the residual funds in the trust account post-meeting.
The news above is based on an SEC filing.
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