Revelation Goes the SPAC Way to list on Nasdaq

In 2020, the Special Purpose Acquisition Companies (SPACs) raised more capital than all previous years combined. That trend seems to have continued to 2021, as SPACs have raised over $87.9 billion so far.

The latest player to ride the wave is Revelation Biosciences, which on August 30th announced its merger with Petra Acquisition to create a company listed on the Nasdaq exchange.

Revelation is a life sciences company developing therapeutics and diagnostics for respiratory viral infections.

The merger is expected to be completed in the fourth quarter of 2021. Subsequently, the combined company will list on Nasdaq under the ticker symbol “REVB”.

Earlier this year, Revelation raised $4.4 million in a Series A financing round. With the merger, the company will gain access to the $73 million war chest sitting in Petra’s trust account. This will put Revelation’s combined value at around $128 million.

Extra Funds for Lead Product Candidate REVTx-99

Revelation will funnel proceeds from the $73 million transaction into developing its lead product candidate REVTx-99 to prevent or treat respiratory viral infections.

REVTx-99 is an antiviral nasal drop that acts by activating the innate immune system to prevent or treat infection from a variety of viruses, including different forms of influenza, rhinovirus, RSV, and COVID-19 variants.

In a completed Phase 1 clinical trial, the experimental drug has proven that it is well-tolerated and stimulated significant production of Interferon-Induced Protein-10 (IP-10), an activator of white blood cells.

Revelation plans to initiate a Phase 2 viral challenge study in early 2022, which would evaluate the potential of the REVTx-99 to prevent or reduce the severity and duration of infection with influenza.

James Rolke, Chief Executive Officer of Revelation, has commented on the crippling effects a virus has on lives and economies.

“We believe innovations like REVTx-99 will enable a return to normalcy, alleviating concerns about exposure to severe respiratory infections,” he said. “Our merger with Petra Acquisition will provide the capital needed to further our innovations and ensure they are widely available to transform the prevention and treatment landscape of viral respiratory diseases which lead to millions of deaths annually as well as immense healthcare and economic disruptions.”

Revelation is also developing REVTx-200, a supplement to intramuscular vaccination for boosting immunity, and REVDx-501, a rapid point of care diagnostic for detecting respiratory viral infection regardless of virus type.

In SPAC, They Believe

Earlier in August, a merger announcement between biotech firm EQRx and CM Life Sciences III saw EQRx go public on the Nasdaq. EQRx’s IPO is expected to raise around $1.8 billion in cash.

Only a few days later, RNA tech firm GreenLight Biosciences revealed its intent to merge with Environmental Impact Acquisition Corp. and list on Nasdaq. The announcement netted GreenLight a valuation of $1.5 billion.

SPAC mergers provide companies with an alternative to the traditional IPO. SPACs could accelerate the process a company needs to go through in order to go public. A highly-reputed SPAC could confer a “halo effect,” giving market credibility and valuation certainty to a company.

Author

Joy Lin

Without knowledge, there is no imagination. Without imagination, knowledge is meaningless