Priveterra Acquisition Corp. (NASDAQ:PMGM) and its biopharmaceutical target, AEON Biopharma, announced this morning that they have secured an additional $20 million in commitments from existing investors in connection to its business combination.
The SPAC brought about $276 million into the deal through its current trust but aside from today’s funding, it has not yet supplemented this with other committed sources of capital. Priveterra must maintain at least $45 million in cash available in order for the deal to close, which means the SPAC potentially still needs to secure an additional $25 million in capital.
Under the terms of the commitments, the issued security is to be exchanged or converted into Class A common stock of the combined company once the proposed merger is completed, and is expected to fund concurrently with or immediately prior to the closing of the deal.
PMGM announced its $201.8 million business combination with drug developer AEON on December 13, 2022. Irvine, California-based AEON is working on an injection-based migraine treatment to compete with Botox for chronic and frequent sufferers.
AEON Biopharma also announced in December the completion of patient enrollment in the Phase 2 study of ABP-450 for the preventive treatment of episodic migraine. The company expects to announce top-line data from the study in the second half of 2023.