SPAC Introduction

SPACs are operating companies formed for the purpose of consummating a business combination with one or more target companies using a combination of listed stock and cash, raised from an Initial Public Offering plus additional PIPE equity, convertible or senior debt.

Market Share

In 2019, nearly 1 in 4 of US IPOs (by volume and value) were SPACs:

Healthcare SPACs

In the 5 years between 2015-19:

  • 172 SPAC IPOs
  • Of which, 12 were focused on the US healthcare sector
  • TMT and Consumer were the most common sector strategies

In the 5 years between 2015-19:

  • 312 healthcare IPOs
  • 6 US healthcare SPAC transactions (5 in 2019 alone)

Our First SPAC

On August 29, 2019, we successfully consummated an acquisition of and concurrent PIPE in DermTech, Inc. at $6.50 per common share. Click here for DermTech’s corporate presentation.

  • As we indicated in our Closing press release, “we are excited to bring this opportunity to our shareholders for three reasons.
    1. The molecular diagnostics sector has meaningfully outperformed the traditional pathology sector over the last two years.
    2. In addition to a deep pipeline of new technologies, DermTech has developed PLA, a clinically proven test that is significantly superior to surgical biopsy in terms of patient comfort, specificity and sensitivity.
    3. There is a significant near-term value creation opportunity linked with anticipated LCD and product pricing decisions as well as a significant long-term value creation opportunity linked with scale-up of its commercial footprint and sales led by a very experienced and competent Management team.”
  • On Jan 2, 2020, DermTech received a final Local Coverage Decision from Medicare at a price of $760 per Pigmented Lesion Assay test.
  • On Mar 2, 2020, DermTech announced that they successfully consummated a PIPE with $65 million in gross proceeds.

Our Second SPAC

We expect to launch our next SPAC in 2020 with targeted IPO proceeds of $100-150 million. The SPAC will focus on US healthcare companies.