Vincerx Pharma (VINC) said Tuesday it has entered into a nonbinding letter of intent for a reverse triangular merger that would result in artificial intelligence infrastructure company Global Digital, doing business as QumulusAI, becoming a publicly traded company.
The proposed transaction values QumulusAI at about $285 million and Vincerx at around $15 million, Vincerx said.
Under the proposed terms, Vincerx said its subsidiary would merge into QumulusAI, with QumulusAI stockholders receiving Vincerx shares. QumulusAI options, warrants, and other rights would be converted into options, warrants, and rights to acquire Vincerx stock.
As part of the deal, QumulusAI or its designees will also invest up to $1.5 million in Vincerx before the transaction closes, according to Vincerx.
QumulusAI shareholders are expected to own about 95% of the combined company, with Vincerx holders holding the remaining 5%, Vincerx said.
The companies have agreed to a 30-day exclusivity period to negotiate and sign a definitive agreement, Vincerx added.
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