CBI plans to issue new SPAC to merge with Israeli life science company
The Israeli biotech giant plans to raise $100 million on Nasdaq to acquire a company that’s involved in advanced healthcare solutions
12:1418.03.21
The SPAC frenzy is continuing to produce new opportunities. On Thursday, Clal Biotechnology Industries (CBI) announced its intent to issue a special purpose acquisition company (SPAC) on the Nasdaq in an effort to raise $100 million to acquire or merge with an Israeli life sciences company.
CBI CEO Ofer Gonen. Photo: Eran Lavie Among the reasons companies favor taking the SPAC route as opposed to a traditional IPO, is the speed at which the deal can be completed. SPACs enable mergers to be completed within weeks instead of the minimum nine-month period it takes privately held companies to complete an IPO.
According to the company’s statement, it plans to acquire a company that is active in the biotechnology, drug development, digital healthcare, or medical technology sectors.
![CBI CEO Ofer Gonen. Photo: Eran Lavie CBI CEO Ofer Gonen. Photo: Eran Lavie](https://pic1.calcalist.co.il/PicServer3/2017/03/06/708718/Ofer-Gonen-l.jpg)
CBI also announced on Thursday that it is conducting negotiations with R&D partnership Almeda Ventures, which was recently listed on the Tel Aviv Stock Exchange. CBI aims to sell Almed its shares in Anatomy Medical Technology Fund worth NIS 17 million-20 million. The sale will allow CBI to continue focusing on its holdings in the biotech and drug development fields. Almeda, meanwhile, will focus on developing the fund, which specializes in healthtech.