Deep Medicine’s move comes after it made two amendments to the deal to extend the due diligence period. The first amendment was made on September 6, to extend Chijet’s due diligence period until September 20, in an effort to review the company’s operations and complete its own valuation of the Chinese carmaker. On September 16, the parties entered into the second amendment to extend the diligence expiration date until September 30. However, on September 26, Deep Medicine sent Chijet a termination notice.
The deal included a minimum cash condition of at least $10 million. Deep Medicine brought about $127.8 million from its current trust into the deal and did not supplement this with a PIPE.
Deep Medicine and Chijet mark the 45th deal to be terminated this year. The SPAC will not be obligated to pay any penalties pursuant to the terms of the business combination agreement as a result of the termination.
Deep Medicine initially announced its definitive agreement to combine with Chijet just a few months ago on July 13, 2022. Chijit currently sells a line of gasoline-fueled SUVs and trucks in China and Southeast Asia and is working to build a production facility for a new line of EVs.