Thursday, January 20, 2022

Even as boom wanes, a new $200M SPAC is still hoping for another big score - Endpoints News

The biotech sector has been booming throughout the Covid-19 pandemic — and while it has slowed down considerably, there are yet more SPACs at work.

Blank check company BioPlus Acquisition Corp announced last Thursday that it priced its upsized IPO of 20 million units at $10.00 per unit — for $200 million.

The SPAC started trading on Friday at $10.02 under the ticker $BIOSU.

BioPlus didn’t wade into details about its targets, saying only that it planned to merge with “Life Sciences Sector,” according to the company’s S-1 filed back in July.

The SPAC’s “sponsor” — known as BioPlus Sponsor, LLC — owned 100% of the shares available before the IPO, around 6.3 million shares. After the offering, the plan was for BioPlus Sponsor was go down to about 5.9 million shares, and much further down percentage-wise — from 100% down to 21%.

And from the S-1, the sponsor had three managing members: life sciences lawyer Alan Mendelson, who died earlier this year, Alex Vieux and Steven Fletcher.

Mendelson was a former biopharma lawyer who served as legal counsel to Amgen and later Blade Therapeutics before his death back in October. Vieux is the owner of Red Herring, a consumer business portal, and Fletcher is a partner with Broken Arrow Holding, a private VC firm.

This comes as a late bloom in the SPAC market — after a massive showing from last summer to this year, that market has started to recede. Just a few weeks ago, Flagship’s Valo Health and Khosla Ventures SPAC called off its planned...

Read Full Story: https://endpts.com/despite-the-boom-waning-a-new-200m-spac-is-still-hoping-theres-a-promising-biotech-to-take-public/