Isleworth (NASDAQ:ISLE) announced this afternoon that it has mutually terminated its combination agreement with biopharmaceutical company Cytovia.
Although the press release was short on details, it is likely the parties decided to terminate for the same reason a number of other SPACs recently have, which pertains to the headwinds in the SPAC market as well as general market volatility. The termination is effective immediately, but it’s worth noting that Isleworth stated that it is, “currently assessing whether it should extend its life”.
Isleworth originally brought about $207 million into the deal from its current trust, which it planned to supplement with $100 million in additional funding. As a part of this, Cytovia’s strategic partner Cellectis had agreed to invest $20 million convertible notes in the company, which were to come with a number of warrants equal to 35% of the number of shares Cellectis receives. The SPAC had a minimum cash closing condition of $50 million through a combination of its trust and the PIPE.
Isleworth had also arranged a $20 million PIPE investment to be available at the merger’s signing from new investors and had plans to line up $30 million more in PIPE investments and $30 million more convertible notes funding before close.
But, with a deadline of August 30, quickly approaching, the SPAC, as mentioned above, is still assessing whether it should extend its timeline and seek an alternative business combination. Isleworth raised $180 million at IPO on February 24, 2021 and initially aimed to combine with a revenue generating US healthcare company with direct-to-patient initiatives. The SPAC is led by Chairman Allen Weiss and CEO Robert Whitehead alongside CFO and EVP Dan Halvorson.
Both the SPAC and equity market conditions are creating an ongoing challenge for SPACs and IPOs alike, making Isleworth’s deal the 26th to terminate this year. The SPAC initially announced its $367 million combination with Cytovia earlier this year on April 27. The Aventura, Florida-based company is working to develop a range of therapies to treat liver cancer with modified natural killer cells.
At the SPAC of Dawn Although the market has largely recovered from a negative stretch last week, the roller coaster is tilted back downward for Trump Media (NASDAQ:DJT), which slid -8% yesterday to $32.57 – one of its lowest points since closing with Digital World last month. Other SPACs and de-SPACs are having a more...
Remember the metaverse? Many do not. Meta’s (NASDAQ:META) attempted transition to virtually living and working seemed to mark a trend that went up and down quickly, but one SPAC deal has both survived that roller coaster and may rise with a second. Back in December 2022, Newbury Street (NASDAQ:NBST) announced a $1.85 billion combination with...
At the SPAC of Dawn Tucked into the bill that provides $95 billion in funding to American allies passed by the House this weekend is another measure that is likely to have far more impact on at least one pending deal in SPAC world. It would appear that the timing was fortuitous for TikTok rival...
With the passage this weekend of $95 billion in funding for Ukraine, Israel and Taiwan by the House of Representatives, some focus has gone back towards the defense sector, which has generally had a good year as a whole. But, SPACs have not been as active in defense, despite the fact that companies in the...
At the SPAC of Dawn As April’s sleepy month for SPAC news continues, there is only one special meeting on the docket to consider a SPAC deal approval, that being today’s vote on Pegasus Digital Mobility‘s (NYSE:PGSS) combination with equipment manufacturer Schmid. Three more SPACs are facing extension votes this week, including Pyrophyte (NYSE:PHYT), whose...