An initial $2.5 million advance has already been funded to Realbotix for growth and working capital. The facility is non-interest bearing while the acquisition remains pending.
Under the agreement, the bridge facility and any obligations attached to it will be automatically cancelled and discharged if the acquisition closes. The cash required from Onconetix at closing will also be reduced by the principal advanced under the facility plus an additional $500,000.
If the transaction is terminated instead, interest on the outstanding principal will begin accruing at 12% annually from the termination date.
Onconetix agreed in February to acquire 100% of Realbotix LLC in an all-stock transaction. Realbotix Corp. is expected to receive between 75% and 90% of the fully diluted equity of the combined company, depending on the amount of net cash held by Onconetix at closing. The transaction remains subject to shareholder approval, regulatory approvals and other closing conditions.
If completed, the combined company is expected to continue trading on Nasdaq. Realbotix LLC contains the group’s humanoid robotics engineering operations, AI software team and certain robotics patents and intellectual property. Its systems are focused on expressive humanoid robots for customer service, healthcare, education, hospitality and entertainment.
