Good Works II Acquisition and Direct Biologics, a late-stage biotechnology company, today announced they have signed a letter of intent for a potential business combination. The LOI is non-binding except for certain specified provisions relating to, among other things, exclusivity, expenses and other customary provisions.
The letter of intent provides that, until Nov. 21, Good Works II and Direct Biologics will negotiate exclusively with each other to achieve a merger agreement.
Direct Biologics is using its extracellular vesicle platform technology — designed to harness the power of bone marrow-derived mesenchymal stem cells — to develop cell-free therapeutic candidates. Its product candidate, ExoFlo, is in a Phase 3 clinical trial for treating moderate-to-severe acute respiratory distress syndrome in hospitalized adults with severe-to-critical COVID-19.
Good Works II raised $200 million in a July 2021 IPO. The SPAC earlier this month called an Oct. 11 meeting for shareholders to vote on a six-month merger deadline extension. Read more.
