Abpro Corp. is making another attempt to go public, this time by merging with Atlantic Coastal Acquisition Corp. II. The merger would put Abpro’s company value at $725 million. Atlantic Coastal is a special purpose acquisition company (SPAC) that went public in January 2022. Its stock (NASDAQ:ACAB) closed Sept. 22 at $10.63 per share.
The first special purpose acquisition company (SPAC) merger announced in 2023 has fallen apart. Aprinoia Therapeutics Inc. and Ross Acquisition Corp. II mutually agreed to call off the merger that had been valued at $280 million. The failed deal is part of a larger trend that has gained momentum in the past year as a struggling economy and tighter U.S. SEC restrictions dampened SPAC deals.
Looking ahead to potential commercialization of its late-stage tau PET imaging agent, Aprinoia Therapeutics Inc. has chosen to go public via a merger with special purpose acquisition company (SPAC) Ross Acquisition Corp. II in a deal that has an equity value of $280 million. The funding is aimed at getting candidate 18F-APN-1607 to the market in China.
After a flood of deals with special purpose acquisition companies (SPACs) that took dozens of med-tech and biotech companies public in 2021, deal flow slowed to a trickle in 2022. Market conditions factored into the collapse of interest, but regulatory changes also played a significant role. Still, several notable companies made their market debuts via SPACs in 2022 – and one changed its mind mid-stream.
Transition ultrasound startup QT Imaging Inc. is poised to go public via a merger with Gigcapital5 Inc., a special purpose acquisition company (SPAC), in a deal that puts the equity value of the combination at $151 million. The combined company, QT Imaging Holdings Inc. will be traded on the NYSE under the ticker symbol QTI.
Eye diseases specialist Oculis SA is set to add $200 million to its balance sheet by merging with the European Biotech Acquisition Corp., a special purpose acquisition company (SPAC) formed to invest in the European life sciences industry.
After listing on the Nasdaq market on May 18, Hong Kong-based diagnostics and genetic testing company Prenetics Group Ltd. saw its shares fall nearly 30% in early trading, dropping from $8.40 per share on listing to $5.70 by the end of trading May 19. Trading under the ticker PRE, Prenetics formed a merger with Artisan Acquisition Corp., a special purpose acquisition company, which was founded by entrepreneur Adrian Cheng. The transaction values Prenetics at an enterprise value of $1.25 billion, making the company the first Hong Kong unicorn to list on the Nasdaq.
Sorrento Therapeutics Inc.’s majority-owned subsidiary, Scilex Holding Co., and antibody drug developer Apexigen Inc. both announced plans late this week to go public via mergers with special purpose acquisition companies (SPACs), suggesting that, despite current market conditions, SPACs are still considered a viable option for firms seeking cash and access to public markets.
After two years of record venture capital financing, which peaked during the first quarter of 2021 with a whopping $38.27 billion raised, investments in biopharma have started to drop off, and industry watchers are expecting a slower deal pace ahead. The same is expected for the IPO market, which saw a record 134 companies go public in 2021. Those trends, combined with big pharma’s hefty cash balances, could mean an M&A surge in 2022, though the availability of special purpose acquisition companies could continue to offer private firms an attractive alternative to a buyout.
