Massimo Giachetti
Singapore-based cancer drug maker Aum Biosciences is about to go public on Nasdaq through a business combination with SPAC Mountain Crest Acquisition (NASDAQ:MCAG).
The transaction reflects a pre-equity value of $400 million for Aum and is expected to provide ~$69 million in cash holdings Mountain Crest’s trust account, assuming no redemption funds, the companies said in a statement on Thursday.
Upon closure, the incorporated company will operate under a holding entity formed as an exempt company in the Cayman Islands (Holdco) and intended to trade on Nasdaq under the symbol AUMB.
Under the agreement, all outstanding AUM shares will be destroyed in exchange for ~40 million common Holdco shares valued at $10 per Holdco share.
AUM is developing a portfolio of precision cancer treatments. AUM001 is an MNK inhibitor whose enrollment is expected to begin in phase 2 trials in Q4 2022. Aum said it partnered with Roche to develop AUM001 in combination with Tecentriq for several blocks. solid u.
The companies added that AUM601 is a promising therapy for TRK combination and mutations in the kinase domain and is on track to enter phase 2, while AUM302 is an oral kinase inhibitor.
Following the close of the deal, Aum CEO Vishal Doshi will continue to lead Holdco as CEO.
The boards of both companies approved the transaction, which is expected to close in the first quarter of 2023.
The deal requires approval from the shareholders of both companies, regulatory clarity, among other things.
