BCTG Acquisition, a blank check company formed by Boxer Capital targeting the biotech industry, filed on Friday with the SEC to raise up to $125 million in an initial public offering.
The San Diego, CA-based company plans to raise $125 million by offering 12.5 million shares at $10. Unlike an ordinary SPAC, the company is not offering warrants that would become exercisable following completion of the initial business combination. Its sponsor has agreed to purchase at least $25 million worth of shares in connection with a proposed acquisition. At the proposed price, BCTG Acquisition would command a market value of $161 million.
The company is led by CEO and Chairman Aaron Davis, the co-founder, CEO, and portfolio manager of Boxer Capital; and President Christopher Fuglesang, the co-founder and Managing Director of Boxer Capital. The company plans to target a business in the biotechnology industry.
BCTG Acquisition joins the growing trend of blank check companies going public by offering common shares instead of units. SPAC offerings normally include units consisting of shares of common stock and tradable warrants. RA Capital's Therapeutics Acquisition (TXAC) was the first to complete a warrantless SPAC offering, and it last closed up 50% from IPO.
BCTG Acquisition was founded in 2020 and plans to list on the Nasdaq under the symbol BCTG. SVB Leerink is the sole bookrunner on the deal.
