HDL Therapeutics today announced a merger agreement with Swiftmerge Acquisition at a valuation of $480 milion for the combined company.
The target is a commercial stage biotech company with an FDA-approved cardiovascular therapy the Plasma Delipidation System (PDS-2™ System) for reducing coronary atheroma in patients with homozygous familial hypercholesterolemia. Cholesterol and calcium deposits are the common culprits behind this arterial condition.
Investors in HDL Therapeutics will receive a combination of cash and equity in Swiftmerge totalling $400 million, subject to adjustments.
The combined company itself would receive approximately $104 million in gross proceeds, including $24 million of cash held in Swiftmerge’s trust account (assuming no redemptions) and approximately $80 million in new PIPE financing that Swiftmerge seeks to raise.
Swiftmerge in a June said shareholders redeemed 20,553,090 shares at $10.39 each ahead of an extension vote. The measure pushed the SPAC’s completion deadline from June 17 to March 15, 2024.
The SPAC had held about $225 million in trust as of April, when Swiftmerge signed an LOI with HDL. Based on that amount, redemptions erased about 89% of the trust two months ago.
Swiftmerge raised $200 million in a December 2021 IPO “to pursue opportunities targeting disruptive consumer companies utilizing technology and the internet to evolve the way that consumers interact with the market.” Read more.
