New deal, same SPAC game
8i Acquisition 2 Corp. is teaming up with EUDA Health in a transaction that gives the combined company an estimated $583 million enterprise value. That number includes about $673 million of equity value and $90 million in net cash, assuming public shareholders don’t hit the eject button.
Follow the cash, not just the headline
Here’s the part investors usually squint at: the cash coming into the deal depends on redemptions. 8i says it has about $86.3 million in trust, but that’s only useful if investors actually leave it there. If a bunch of holders redeem, the post-close balance sheet could look a lot less glam than the press release suggests.
Sweeteners for the road
EUDA’s side of the deal also comes with earnouts — 9 million total shares that could be handed out if the stock hits $15, $20, and $25 over the next three years. Translation: the seller gets more upside only if the market buys the story and sends the shares moonward.
Big picture
This is classic SPAC theater: big valuation, lots of optionality, and plenty of fine print. For investors, the real question isn’t whether the headline sounds exciting — it’s whether the merged company can keep enough cash in the door and actually grow into that valuation.