Carmell Therapeutics to go public via $328m SPAC deal with Alpha Healthcare

TAGS

Carmell Therapeutics, a phase 2-stage biotechnology platform company, is set to go public through a merger deal with Alpha Healthcare Acquisition Corp. III, a special purpose acquisition company (SPAC).

Post-closing, the combined business will be renamed Carmell Therapeutics Corporation, which is likely to be listed on the Nasdaq Capital Market.

Assuming no redemption of shares by Alpha Healthcare shareholders, the enlarged Carmell Therapeutics is estimated to have a market capitalization of around $328 million.

Based in Pennsylvania, Carmell Therapeutics is focused on developing allogeneic plasma-based biomaterials for the healing of bone and soft tissue.

The company’s product candidates include bone healing accelerant (BHA) and tissue healing accelerant (THA).

Bone healing accelerant is intended for multiple bone applications like trauma fixation surgeries, including spinal fusion, severe tibia fractures, dental bone graft substitutes, and foot/ankle fusion.

Tissue healing accelerant is anticipated to be used in chronic wound care as well as aesthetic applications.

Randy Hubbell — Carmell Therapeutics CEO said: “The business combination of Alpha and Carmell, allows us to advance the clinical development of our platform technology, to add significant regenerative medicine experience to the Carmell board of directors and to access high-quality institutional investors.”

Assuming no redemptions, the combined entity is projected to receive gross proceeds of about $154 million, post-closing.

Rajiv Shukla — Alpha Healthcare Chairman and CEO said: “Carmell’s patent-protected technology is designed to enable the application of allogeneic biomaterials across a wide variety of orthopedic and soft tissue applications.

“By potentially accelerating healing time and reducing the rate of infections, Carmell’s product candidates, if approved, are expected to significantly improve patient outcomes and reduce cost to payors.”

Under the terms of the proposed agreement, Carmell Therapeutics’ shareholders will receive an aggregate of 15 million shares of Alpha Healthcare for their existing shares in the biotechnology platform company.

Upon the completion of the transaction, the existing stakeholders of Carmell Therapeutics will own around 46% of the issued and outstanding shares in the combined entity.

The transaction is anticipated to complete in the first half of 2023, subject to the approval of Alpha Healthcare and Carmell Therapeutics’ shareholders and other customary closing conditions.

CATEGORIES
TAGS
Share This

COMMENTS

Wordpress (0)