CERo Therapeutics and Phoenix Biotech Acquisition today announced a definitive business combination agreement at a pro forma equity capitalization of $145 million. If approved, upon closing, whic is anticipated to occur in the second half of 2023, the combined company will be named CERo Therapeutics Holdings. The target is an immunotherapy company seeking to advance the next generation of engineered T cell therapeutics that employ phagocytic mechanisms.
Aassuming no redemptions, CERo would expect to receive up to $13.7 million of cash held in the SPAC’s trust. The business combination reflects a pre-money equity value of $50 million for CERo. The business combination is subject to a minimum cash condition of $30 million, net of expenses, which is expected to be funded through the SPAC’s trust and additional financing, including investments from existing CERo stockholders via a PIPE.
Phoenix Biotech in a proxy filed last month seeks shareholder approval for a deadline extension in monthly increments from July until Oct. 3, if necessary.
The SPAC in December mutually terminated a $136 million deal with Intrinsic Medicine.
Phoenix Biotech raised $155 million in an October 2021 IPO with plans to target healthcare or healthcare related industries in the United States and Europe, especially life sciences companies. Redemptions have eroded the trust considerably since then. Read more.
