Clal Biotech to Form a $ 100M SPAC

Clal Biotechnology Industries (TASE: CBI) is once again making a new investment after several years focusing on its existing portfolio. This time, the company turns into the current hot ingredient in the stock market and is forming a SPAC (Special Purpose Acquisition Firm). Clal Biotech also announced today that it will separate from Anatomy, its medical technology funds. In addition, the company announced a dividend of NIS 36 million after the exit in 2020 from the Cadent Therapeutics and Neon portfolio companies. In December, Cadent Therapeutics was sold to Novartis for an immediate payment of $ 210 million, with a potential further payment based on success of up to $ 770 million. The American company Neon Therapeutics, in which Clal Biotechnology holds a 4% stake, has been incorporated into German company BioNTech, which has become a partner of Pfizer in developing a vaccine against Covid-19. Clal BNiotech sold its shares for $ 15 million, after investing only a few million dollars. On top of all this, Clal Biotech announced a share buyback program worth 9.3 million shekels. This morning, Clal Biotech was trading with a market value of NIS 297 million, after its share price rose 178% over the past year. SPAC’s plan is to raise $ 100 million to invest in a company valued at between $ 500 million and $ 1 billion. The company is likely a pharmaceutical business, or, more likely, a digital health company associated with pharmaceuticals. Ofer Gonen, CEO of Clal Biotech, said, “We are creating a special purpose acquisition company with key life science partners whose names cannot be revealed yet. The target company will be in Israel. We estimate that there are about ten Israeli companies that could be suitable for a movement like This represents a unique opportunity for us, unlike players who have set up a plumber abroad and don’t know these companies well, or are not looking to invest here. ”The second step announced by Clal Biotech is to sell Anatomy money to Almeda Ventures’ partnership in exchange for shares. Almeda Ventures is a partnership to invest in digital health and medical devices that was listed on the Tel Aviv Stock Exchange in October last year with a market value of NIS 41 million. The partnership is managed by Tzachi Sultan, Dr. Irit Yaniv and Dr. Amir Platt. Anatomy’s portfolio will be transferred to Almeda Ventures, with the exception of Sight Diagnostics, the developer of Rapid Checkups that raised $ 71 million last August. The partners in Anatomy Funds will receive participating units in Almeda Ventures, worth NIS 17-20 million. Clal Biotech owns 50% of Anatomy and Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL) owns 30% and Harel Insurance Investments and Financial Services Ltd. (TASE: HARL) owns 20%. Related articles Novartis said today it censored Clal Biotech portfolio companies for $ 770 million. Decide on. The deal brings in new Almeda companies without initial financial investment, and also adds Clal Biotech and two significant financial institutions as investors in the partnership, along with The Phoenix Holdings Ltd. (TASE: PHOE1; PHOE5) and More Investment House and Excellence Investments Ltd. (TASE: EXCE), which has already been invested. Posted by Globes, Israel business news – en.globes.co.il – on March 18, 2021 © Copyright Globes Publisher Itonut (1983) Ltd. 2021