After lengthy delays and a lawsuit from one involved party, an ultrasound developer is finally moving forward with a merger.
The deal dates to December 2022, when QT Imaging first started discussing a sale to investment firm GigCapital. Both sides had originally hoped to execute the transaction by mid-2023, with the combined company carrying an equity value of $151 million.
However, talks have stalled and in September, GigCapital filed suit, trying to force the deal to move forward. At the time, it accused Novato, California-based QT Imaging of engaging in discussions with a third party that were “contrary to the exclusivity provision” of their agreement.
But things now appear back on track, with shareholders voting to approve the proposed business combination, according to an announcement issued Thursday.
GigCapital Global specializes in taking other companies from private ownership to public trading. Leaders there formed a “special purpose acquisition corporation”—a blank check, shell company listed on a stock exchange for the purpose of acquiring an entity—in late 2022. The company now has until March 31 to close the transaction following shareholders’ approval.
Internist John Klock, MD, founded QT Imaging in 2011 and currently serves as its CEO and chief medical officer. The medical device-maker offers whole-body and breast ultrasound technology including the QTSscan, cleared for sale by the U.S. Food and Drug Administration as an adjunct to mammography. The National Institute of Health has awarded QT Imaging more than $15.5 million in research funding.
You can read more about the deal in our September report about the lawsuit.
Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.