Alpha Healthcare III (NASDAQ:ALPA) announced this morning that it has signed a non-binding LOI for its combination Carmell Therapeutics to acquire an unnamed commercial-stage biotech firm for about $65 million.
The consideration would come in the form of $8 million in cash and $57 million in combined Carmell stock at close plus $75 million in potential milestone payments paid out along the same split (12% cash and 88% shares). This target company’s shares would be locked for 12 months following close.
The $140 million total potential value of this acquisition comes close to doubling the scale of the initial combination with Carmell, which was struck at $188 million enterprise value. Pittsburgh-based Carmell is developing a treatment platform to accelerate healing in bone fractures and soft tissue wounds.
It could also provide Carmell with some cash flow nearer at hand post-close as the target generated about $5 million in EBITDA from $50 million in revenue during the 12 months ending March 31, 2023.
The target also has a sales contract in place with a purchasing organization with coverage in about 1,500 US hospitals. Carmell’s therapies on the other hand remain at the clinical stage with its most advanced candidates undergoing Phase II trials.
This acquisition agreement remains non-binding, however, and may not come to fruition. In the meantime, it may serve as an amuse-bouche for Alpha Healthcare III investors as they head into a completion vote for the Carmell deal on July 11.
Columbus Acquisition Corp (NASDAQ:COLAU) has filed for a $57.5 million IPO to give its team a second vehicle in circulation to hunt for deals. The same team IPO’d Eureka (NASDAQ:EURK) in July at a slightly smaller $50 million scale and this new SPAC would improve upon some of that foray’s terms. Both SPACs managed to...
At the SPAC of Dawn One week before Thanksgiving, SPACs are not filling up their plate with just five votes scheduled, all of which are extensions. Five of these are set to take place today, and investors are also set to get an update on one of the most successful de-SPACs of recent years. Industrial...
Terms Tracker for the Week Ending November 15, 2024 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. The drought in De-SPAC deals continues without a single announced combination since October 23rd. That’s more than three weeks now with SPACs experiencing a dry...
Few corners of the market have seen a bigger boost from the result of the US elections than the crypto industry, and SPACs are always sure to be drawn to where the action is. But, in crypto’s case, this is a play that SPACs have been involved in before, so the question is more of...
At the SPAC of Dawn As more information continues to trickle out about what investors should expect from the Trump 2.0 tax changes, it has become increasingly clear that the $7,500 EV tax credit is on the outs. Such a change could shift the strategies for many EV de-SPACs and prospective SPAC targets in the...