Inception Growth Acquisition Ltd (NASDAQ:IGTA), a special purpose acquisition company (SPAC), has entered into pivotal agreements as it advances towards its merger with AgileAlgo Holdings Ltd. The agreements, disclosed in an 8-K filing with the Securities and Exchange Commission today, outline the conversion of sponsor loans and the settlement of underwriting fees.
The company has reached a Sponsor Loan Conversion Agreement with its sponsor, Soul Venture Partners LLC, which will see all loans provided by the sponsor, including those for IPO expenses and administrative services, convert into 240,000 shares of common stock in the post-merger entity upon closing.
Additionally, Inception Growth has signed a Satisfaction and Discharge of Indebtedness Agreement with EF Hutton LLC, the underwriter of its IPO. Instead of receiving a cash deferred commission, EF Hutton will accept 50,000 shares, valued at $500,000, and a promissory note for an additional $500,000, which will mature 13 months post-issuance or 92 days after the termination of certain convertible promissory notes related to a Standby Equity Purchase Agreement.
The agreements come as Inception Growth prepares for its upcoming business combination with AgileAlgo, which was previously announced on September 12, 2023. Upon completion, AgileAlgo will become a subsidiary of the newly formed entity, with Inception Growth merging into the subsidiary.
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