KBL Merger Corp. IV (KBLM), released details this morning on their previously announced non-binding term sheet ahead of their June 5th extension vote. KBLM’s LOI with with CannBioRx Life Sciences Corp. (“CannBioRx”), would form a company combined of three programs focused on treating inflammatory diseases:
- 180 Therapeutics, a late clinical-stage biopharmaceutical company focused on the discovery and development of novel biologic therapies for treating fibrosis;
- Katexco Pharmaceuticals, a pre-clinical effort for developing orally available therapies harnessing the brain’s nicotinic receptors to treat inflammatory diseases; and
- CannBioRexPharmaceuticals, a pre-clinical initiative focused on the development and commercialization of man-made cannabinoids for arthritis, pain, diabetes and obesity.
Important to note, KBL states these opportunities are non-plant-touching, pharmaceutical-grade, non-psychoactive cannabis and drug development programs.
Shareholder Vote to Extend: To be held June 5th, record date is May 15th
No further details on the transaction have been released as of yet, but it is important to note that KBLM will be changing it’s previous extension amendment. Per the first extension amendment, KBLM had previously agreed to contribute $0.03 for each public share that was not redeemed for each calendar month commencing on June 7, 2019, through September 7, 2019 (should they need the full three months). However, KBLM is now asking for a potential six months, which would move their potential deadline date to December 7th instead. Additionally, instead of $0.03 per share per month, KBLM will now be contributing $0.025 per share per month, for a total of $0.15 per share should they need the full six months.
Quick Takes: While cannabis companies are hot, we still do not have a lot of details on this transaction. However, two out of the three of CannBioRx’s programs are at the pre-clincial stage. It’s difficult to evaluate the opportunity without specifics, but clearly this was announced ahead of the extension vote to give shareholders something to chew on before they decide to redeem or not. However, reducing the per month contribution from $0.03 to $0.025 might be detrimental. A longer duration and a reduced monthly contribution are generally not well received by SPAC investors.


Terms Tracker for the Week Ending June 27, 2025 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. June continued its late-month rally with another five SPAC IPOs pricing this week, bringing the monthly total to 10 and the 2025 year-to-date count to...
Blueport (NASDAQ:BPACU) has filed for a $69 million SPAC that would bring another first-time sponsor team to market. The new SPAC is offering investors a right to a 1/6 share in each unit and it will have 15 months to complete a business combination. It is underwritten by Alliance Global Partners and will not be...
At the SPAC of Dawn The markets appear to poised to continue a rosy week with futures in the green in anticipation of PCE inflation readings. Space is one of the sectors feeling the most love recently and launch services firm Rocket Lab (NASDAQ:RKLB) is keeping up the momentum, scheduling two launches within 48 hours...
FIGX Acquisition Corp. (NASDAQ:FIGXU) announced the pricing of its $131 million IPO and its units are expected to begin trading on the Nasdaq under the symbol “FIGXU”, Friday, June 27, 2025. The new SPAC aims to seek out a financial services target with a particular focus on wealth and asset managers with the potential to...
Yorkville Acquisition Corp. (NASDAQ:YORKU) announced the pricing of its $150 million IPO and its units are expected to begin trading on the Nasdaq under the symbol “YORKU”, Friday, June 27, 2025. The new SPAC plans to combine with a target company in the telecom, media or technology sectors. Yorkville Acquisition Corp.’s management team is led...