HBM Healthcare Investments AG / Key word(s): Merger
HBM Healthcare Investments announced today that its portfolio company Valo Health ('Valo'), a technology company using human-centric data and artificial intelligence (AI) powered computation to transform the drug discovery and development process, and Khosla Ventures Acquisition Co. ('KVAC', Nasdaq: KVSA), a special purpose acquisition company founded by affiliates of Khosla Ventures, have entered into a definitive merger agreement.
The transaction values the combined company at a pro forma market value of approximately USD 2.8 billion. The combined company is anticipated to have a pro forma cash balance of approximately USD 750 million before deducting anticipated transaction expenses, including existing Valo cash of approximately USD 250 million as of the date hereof, approximately USD 33 million of net cash held in KVAC's trust, after deducting deferred underwriting commissions and assuming no redemptions, and a USD 168.5 million private investment in public equity ('PIPE') priced at $10.00 per share., to which HBM Healthcare Investments committed USD 7 million.
HBM Healthcare Investment will revalue its existing investment of USD 15 million in Valo Health to reflect the agreed merger valuation. Trading of the KVAC shares may serve as additional valuation parameter. As a result, the net asset value per HBM-share is expected to increase by approximately 0.6 percent.
Closing of the transaction is anticipated to occur in the third quarter of 2021 and is subject to the approval of KVAC's stockholders and the satisfaction or waiver of certain other customary closing conditions.
Valo is building a fully integrated, end-to-end approach to developing drugs from target discovery through approval using its Opal Computational Platform(TM). Built on large scale, highquality longitudinal and omics data, Valo's Opal platform is designed to accelerate the rate of drug discovery compared to that of traditional operators, by allowing information and data to be shared in parallel at every stage of the drug discovery and development process, reducing the dependency on surrogates, and enabling insights across preclinical and clinical to drive towards therapeutic success. Valo has built an internal pipeline with two clinical-stage assets and 15 prioritized pre-clinical assets across cardiovascular, metabolic renal, neurodegeneration and oncology fields, as well as a deep pipeline of additional candidates. This transaction positions Valo to use the full power of technology to accelerate multiple programs through clinical trials.
About HBM Healthcare Investments
HBM Healthcare Investments invests in the healthcare sector. The Company holds and manages an international portfolio of promising companies in the human medicine, biotechnology, medical technology and diagnostics sectors and related areas. Many of these companies have their lead products already available on the market or at an advanced stage of development. The portfolio companies are closely tracked and actively guided in their strategic direction. This is what makes HBM Healthcare Investments an interesting alternative to investments in big pharma and biotechnology companies. HBM Healthcare Investments has an international shareholder base and is listed on SIX Swiss Exchange (ticker: HBMN).
The publication is for information purposes only and does not constitute an offer to sell or a solicitation to buy or subscribe for securities. This news release does not constitute a prospectus within the meaning of Art. 35ff FinSA, or securities prospectus in the sense of the German securities prospectus law. This news release and the information contained therein is not intended for distribution to the United States of America (USA) or within the USA and may not be distributed or forwarded to US persons (including legal persons) or to publications with a general distribution in the USA. This news release is not an offer or solicitation to buy securities in the United States. HBM Healthcare Investments AG's securities were not issued in accordance with the U.S. U.S. securities laws, and may not be sold, offered for sale, or delivered in the U.S. or to U.S. individuals without prior registration or without a registration exemption. Some information quoted was obtained from external sources HBM considers to be reliable. HBM cannot guarantee the adequacy, accuracy, timeliness or completeness of or be held responsible or liable for errors of fact regarding such data and information obtained from third parties, and this data may change with market conditions.
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