Company: FTII
Filing Date: 2025-02-14
Form Type: S-4
Source: 0001493152-25-006997
Chunk: 230

Company: FutureTech II Acquisition Corp.
Filing Date: 2025-02-14
Form: S-4
Chunk 230
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 Company and the PIPE Investor signed an escrow agreement dated January 23, 2025
(the “Escrow Agreement”), pursuant to which the Company agreed to issue additional 2,000,000 shares of Class A Common Stock
(the “Escrow Shares”, together with any dividends, distributions or other income on the Escrow Shares, the “Escrow
Property”), in the name of the Company, to be deposited with Escrow Agent (as defined therein) for two (2) years from
the date of the Closing (the “Escrow Release Date”), subject to release to PIPE Investor if and only if the closing
price of the common stock of the Company on the date immediately prior to the Escrow Release Date is less than $7.50 per share. Pursuant
to the Escrow Agreement, the Escrow Agent shall release a portion of the Escrow Shares to the PIPE Investor such that the aggregate value
of all shares of Common Stock issued to the PIPE Investor at or before the Closing plus the value of the portion of the Escrow
Property released to the PIPE Investor is equal to $7,500,000; provided, however, that if the aggregate value of all shares
of Common Stock issued to the PIPE Investor at or before the Closing plus the value of the Escrow Property on the Escrow Release Date
is less than $7,500,000, the PIPE Investor will be entitled to receive all of the Escrow Property but nothing more; provided, further,
that, each Escrow Share shall be valued at an amount equal to the closing price of the shares of Common Stock on Nasdaq on the day immediately
prior to the Escrow Release Date.

The Subscrition Agreement
became effective upon execution of the Escrow Agreement on January 31, 2025.

Background of the Business Combination

During a meeting
of the Cerevast board held on June 9, 2021, Mr. Yuquan Wang, Cerevast Board member, proposed the concept of Cerevast completing a business
combination with a special purpose acquisition company, or SPAC. During these discussions, it was determined that Cerevast would first
need to acquire one or more other life science companies to achieve a combined valuation that would be considered appropriate for a SPAC
transaction. At this meeting, Mr. Wang and Mr. Bradford A. Zakes, Chairman, Chief Executive Officer and President of Cerevast, were tasked
with identifying potential acquisition candidates