Locust Walk Acquisition stockholders approved the business combination with eFFECTOR Therapeutics yesterday, although redemptions ahead of the vote all but wiped out the SPAC’s cash in trust.
Approximately 93.2% of the votes cast at the meeting, representing approximately 71.7% of LWAC’s outstanding shares, voted to approve the merger, the SPAC said in a press release.
The deal is expected to close today an eFFECTOR’s stock and public warrants will begin trading on the Nasdaq tomorrow under EFTR and EFTRW.
Approximately 17 million of the SPAC’s outstanding shares were redeemed for $10 each ahead of the merger vote, leaving about $5.2 million in trust. The SPAC raised 175 million in a January IPO.
Combined with the $60.7 million in expected gross proceeds from a concurrent PIPE, there will be approximately $65.9 million of total cash proceeds from the transaction. The SPAC said eFFECTOR waived the requirement that total cash proceeds equal or exceed $100 million.
There will be approximately $53.5 million of net cash available to the combined company from the transaction, after deducting transaction fees and expenses.
eFFector develops therapeutic drugs for the treatment of cancer. Read more.
