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    CPSR   US14070Y1010

CAPR SPEC

(CPSR)
Delayed Nyse  -  04:00 2022-09-28 pm EDT
1.130 USD   +3.67%
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CAPSTAR SPECIAL PURPOSE ACQUISITION CORP. : Entry into a Material Definitive Agreement, Unregistered Sale of Equity Securities (form 8-K)

01/03/2022 | 07:03am EDT

Item 1.01. Entry Into A Material Definitive Agreement.

Amendment to Business Combination Agreement

As previously disclosed, on July 19, 2021, Capstar Special Purpose Acquisition Corp., a Delaware corporation (the "Company"), entered into a Business Combination Agreement (as amended by the Amendment to Business Combination Agreement, dated as of November 8, 2021, the "Original Business Combination Agreement"), by and among the Company, CPSR Gelesis Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of CPSR ("Merger Sub") and Gelesis, Inc., a Delaware corporation ("Gelesis") that, among other things, provides for Merger Sub to merge with and into Gelesis, with Gelesis as the surviving company in the merger and, after giving effect to such merger, Gelesis to be a wholly-owned subsidiary of the Company (the "Merger").

On December 30, 2021, the Company, Merger Sub and Gelesis entered into a Second Amendment to the Original Business Combination Agreement (the "Second Amendment to Business Combination Agreement", and together with the Original Business Combination Agreement, the "Business Combination Agreement"), which, among other things, removed the provisions relating to the issuance of 1,983,750 additional Capstar Class A Shares to Gelesis stockholders, equal to the number of Capstar Class B Shares forfeited by Capstar Sponsor Group LLC, a Delaware limited liability company (the "Sponsor"), and certain affiliates of the Sponsor in accordance with the Amendment to Sponsor Letter Agreement entered into by Capstar, the Sponsor, certain affiliates of the Sponsor and Gelesis on November 8, 2021.

The Second Amendment to Business Combination Agreement is filed as Exhibit 2.1 to this Current Report on Form 8-K and the foregoing description is qualified in its entirety by reference to the full text of the Second Amendment to Business Combination Agreement.



Backstop Agreement


Pursuant to 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, among other closing conditions, that the Company's total available cash at the Effective Time, after giving effect to (i) the $90.0 million PIPE Financing and (ii) the Capstar Stockholder Redemptions, must not be less than $105 million (the "Minimum Cash Condition").

In connection, and concurrently, with the execution of the Second Amendment to Business Combination Agreement, on December 30, 2021, the Company entered into a Backstop Agreement (the "Backstop Agreement") with PureTech Health LLC ("PureTech") and SSD2, LLC ("SSD2" and together with PureTech, the "Purchasers"), pursuant to which the Purchasers agreed to purchase an aggregate of up to 1,500,000 Capstar Class A Shares immediately prior to the Closing at a cash purchase price of $10.00 per share (the "Backstop Purchase Shares"), resulting in aggregate proceeds of up to $15.0 million, which amount, when added to the proceeds from the PIPE Financing, is expected to ensure that the Minimum Cash Condition will be satisfied. The Purchasers will only be obligated to purchase Backstop Purchase Shares if, at the Effective Time, the amount of funds remaining in the Trust Account after giving effect to the Capstar Stockholder Redemptions (the "Available Funds") is less than $15.0 million, in which case the Purchasers will purchase such number of Backstop Purchase Shares which results in gross proceeds to the Company equal to the amount by which $15.0 million exceeds the Available Funds, subject to the other terms and conditions of the Backstop Agreement. In addition, subject to the terms and conditions of the Backstop Agreement and the terms and conditions of the Sponsor Letter Agreement, at the closing of the sale of the Backstop Purchase Shares, the Company will issue to the Purchasers 1,983,750 Capstar Class A Shares.

The Backstop Agreement contains customary representations, warranties, covenants and agreements of the Company and the Purchasers and is subject to customary closing conditions and termination rights. If the conditions to the consummation of the backstop subscription contemplated by the Backstop Agreement are triggered, the closing of the sale of the Backstop Purchase Shares is expected to occur substantially concurrently with the Closing of the transactions contemplated by the Business Combination Agreement.

Capitalized terms used but not otherwise defined in this Current Report on Form 8-K have the meanings given to such terms in the Business Combination Agreement.

The Backstop Agreement is filed as Exhibit 10.1 to this Current Report on Form 8-K and the foregoing description is qualified in its entirety by reference to the full text of the Backstop Agreement.

Item 3.02. Unregistered Sales of Equity Securities.

The disclosure set forth above in Item 1.01 of this Current Report on Form 8-K is incorporated by reference herein. The Capstar Class A Shares to be offered and sold and issued in connection with the Backstop Agreement will not be registered under the Securities Act in reliance upon the exemption provided in Section 4(a)(2) thereof.

© Edgar Online, source Glimpses

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Financials ()
Sales 2021 - - -
Net income 2021 -12,9 M - -
Net cash 2021 0,22 M - -
P/E ratio 2021 -26,6x
Yield 2021 -
Capitalization 176 M 176 M -
EV / Sales 2020 -
EV / Sales 2021 -
Nbr of Employees 103
Free-Float -
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