Good Works II Acquisition and Direct Biologics today announced a definitive agreement to merge. The companies disclosed last month that they had signed a letter of intent to do a deal, with the proposed transaction valuing Direct Biologics at an enterprise value of $675 million.
If appoved, at closing Direct Biologics shares are expected to trade on the Nasdaq. The transaction is expected to close in the first half of 2023.
There is a minimum cash condition of $75 million to close the deal. Direct Biologics is also conducting a private placement of up to $100 million. IB Investments I, an affiliate of the placement agent and the sponsor of Good Works II, has invested $5 million in the private placement. As well as the money raised in the private placement, the combined company will also retain the cash in the Good Works II trust account.
Good Works II shareholders earlier this week voted to extend the business combination deadline from Oct. 14 to April 14, 2023. The SPAC raised $200 million in a July 2021 IPO. Read more.
