Envoy Medical, Inc. announced that it has entered into a subscription agreement for the private placement of 1,000,000 series A convertible preferred shares at a price of $10 per share for gross proceeds of $10,000,000 on April 17, 2023. The transaction will include participation from returning investor, Anzu SPAC GP I LLC. The holders of series A preferred stock will be entitled to dividends at the rate of 12% per annum on the original issuance price.

Each series A holder will have the right, at its option, to convert its series A preferred stock, in whole or in part, into fully paid and non-assessable shares of Anzu class A common stock at a conversion price equal to $11.50 per share. The post-combination company may mandatorily convert the series A preferred stock to Anzu class A common stock at the conversion price if, at any time commencing 90 days following the closing, the closing price per share of Anzu class A common stock is greater than $15.00 for any 20 trading days within any 30-trading day period.