Biotech startup Tevogen Bio is going public in a $1.2 billion SPAC deal in the US
While generative AI continues to dominate the headlines, things have been relatively quiet on the blank-check merger front. But that doesn’t mean special purpose acquisition company (SPAC) deals aren’t happening. It’s just that the number of SPAC deals has dwindled in recent months. Now, one biotech startup has just broken the SPAC spell.
Today, Biotech startup Tevogen Bio announced its plans to go public in the United States through a SPACE merger. The merger with Semper Paratus Acquisition will result in a combined entity valued at approximately $1.2 billion. The deal is expected to accelerate the development of Tevogen’s COVID-19 therapy, known as TVGN 489.
Upon completion of the merger, the newly formed company will be named Tevogen Bio Holdings and its shares will be listed and traded on the New York Stock Exchange under the ticker symbol “TVGN.” The anticipated timeframe for the closing of the deal is in the fourth quarter of 2023. This public listing will provide Tevogen Bio with increased visibility and access to capital to further advance its COVID-19 therapy and other biotech endeavors.
Sometimes called a blank-check company, SPAC is a shell company that has no operations but plans to go public with the intention of acquiring or merging with a company utilizing the proceeds of the SPAC’s initial public offering (IPO). The so-called shell companies help private firms avoid the longer route of an initial public offering going public.
SPAC activity has slowed down since the second half of 2022 due to inflation and a slowdown in the overall economy. However, some analysts expect a resurgence in the second half of the year as inflation cools down. So far this year, there are only 17 SPAC deals, according to data from the SPAC analytics firm, SPACAnalytics.com.
Founded in 2020 by a team of scientists and researchers, the New Jersey-based Tevogen Bio is a biotech startup that focuses on the development of innovative therapies and solutions for various diseases and medical conditions. The company is particularly known for its efforts in developing a therapy for COVID-19, referred to as TVGN 489. Tevogen Bio’s mission is to advance the understanding of diseases and develop novel treatments that can significantly impact patient outcomes.