Irving-based hormone therapy company Biote has reached a $60 million settlement with its founder's ex-wife over its 2022 merger with a special purpose...
The Irving-based hormone therapy company has been dealing with the legal blowback from its 2022 SPAC merger which saw founding members diluting their ownership stake.with its founder’s ex-wife, Marci Donovitz. The lawsuit was filed June 5 and alleged that the Irving-based hormone therapy company’s executives irresponsibly agreed to a 2022 merger with a special purpose acquisition company which provided nearly no cash for the deal.
The suit filed in The Court of Chancery of The State of Delaware also alleged that Donovitz was duped into waiving a minimum cash closing condition days before the merger closed. As part of the settlement, Biote will be forced to repurchase all 8.3 million of Donovitz’s shares at $7.23 each. Donovitz’s payout will continue over the next three years.. A SPAC is a shell company that pools money together through initial public offerings to acquire or merge with another company to take it public.
“Suppose a group of strangers came up to you and said: “I have a company. It doesn’t do much of anything, but sometime in the next two years, we’ll merge with another company. I don’t know what that company is yet,” said SEC chair Gary Gensler in a. “What if I told you that, if the strangers complete a merger, they get to pocket 20 percent of your investment? This essentially describes what SPACs do.
As the SEC tightens up on SPACs and looks to put an end to the bonanza around them, Brewer hopes to see more held accountable, he said.“Our client hopes this outcome lights a path for those victimized by similar deals,” Brewer said. “This case underscores the rights of those too often viewed as pawns in these speculative pursuits.”On the first day of his East Asia tour, Texas Gov. Greg Abbott opens the Texas-Taiwan office in Taipei, signaling the growing economic ties to the island nation.
Metrick spoke exclusively to the Dallas Morning News Friday less than 24 hours after HBC, the holding company for Saks, made the deal public.. Irving is a business writer for the Dallas Morning News. He's previously served as an environmental reporter for Bridge Michigan, a writer for Automotive News, and the sports and managing editor for the South End. He graduated from Wayne State University in 2023 with a degree in print and online journalism and psychology minor.
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