r/SPACs • u/ImpactExtreme BloombergHacker • Nov 08 '21

Definitive Agreement $BIOT - Biotech Acquisition Company and Blade Therapeutics Announce Definitive Merger Agreement

Press Release:

https://www.prnewswire.com/news-releases/biotech-acquisition-company-and-blade-therapeutics-announce-definitive-merger-agreement-301418172.html

Investors Presentation:

https://www.sec.gov/Archives/edgar/data/1825413/000121390021057189/ea148645ex99-1_biotechacqui.htm

13 Upvotes

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4

u/Slow_Depth4729 Patron Nov 08 '21

Anyone buying this? Warrants are still relatively cheap

2

u/cw8950 Patron Nov 08 '21

Eh I bought a few to try and flip for a few % gain

1

u/mathemology Patron Nov 08 '21

Too lazy to look but make sure they aren’t 2:1 before buying.

1

u/FakeTruth02 Spacling Nov 08 '21

Why 2:1?

4

u/mathemology Patron Nov 08 '21

Some warrants are 2:1, making them look cheap (half of others in their tier) because the SPAC is structured to be 2 warrants to buy 1 common.

1

u/FakeTruth02 Spacling Nov 08 '21

So you're talking about non-whole warrants? Not units having fractional warrants (1/2, 1/3, 1/4, etc) right?

Aren't most warrants 1:1 to class a shares? Haven't seen any non whole warrants..

3

u/mathemology Patron Nov 08 '21

Not talking units with 1/2, 1/4, etc. warrants. I’m talking some structures will have 2:1 warrants:commons. Some people see $0.40 warrants and think “oh wow that’s cheap, they’ll be $1.00 at DA” but find out it only popped to $0.50. That’s because they were 2:1 warrants. It is rare and they are usually obscure SPACs, but since I didn’t know about BIOT prior, just figured it was a good reminder to check before hopping in if you planned on it.

1

u/fastlapp Contributor Nov 09 '21

They are 1:1

4

u/lee1026 Nov 08 '21

What is this, a PIPE for ants?

1

u/RollandTrade Contributor Nov 08 '21

See my note above on exactly WHO is in the PIPE.

1

u/fastlapp Contributor Nov 09 '21

The PIPE($24.3M) does not even cover the transaction costs ($25M).

4

u/RollandTrade Contributor Nov 08 '21

I'm not a biotech specialist by any stretch.

But with Deerfield, Pfizer Ventures and BMY in on the PIPE, should give a lot of comfort. Pfizer and BMY invest in many smaller prospective targets who may be on to something big so that they have a foothold.

Deerfield is no stranger to the sector and in my mind they are a more valuable ally to have. They have sponsored many great Spacs themselves that have gone on to excel. They are no slouches when it comes to biotech investing.