CBI plans to issue new SPAC to merge with Israeli life science company

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.

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.

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.

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.