Valo Health, a biotech from Boston used artificial intelligence to detect drug discovery, announced on Monday it had agreed to end plans on the use of the land to go public by a merger with a special purpose acquisition company.
The merger was expected to close in the fourth quarter and leave Valo as a publicly traded company with $700 million in cash.
The companies and their respective board decided to end the merger before a planned meeting on Tuesday, where shareholders would vote on the business combination.
A large number of biotech companies have flooded the city, despite its mergers this year, but not all of them has panned out for investors. Gemini Therapeutics went public in February, whose shares fell nearly 70 percent last six months to about $3, and announced that it plans to cut 20 percent of its staff and end research programmes.
Valo raised $300 million in its second round of financing earlier this year, bringing its total funding to $450 million.
Valo launched in the year 2019 from the Harvard, and was founded by 'Spany of Enterprise Technologies' (PVID-2) in 2013. The move comes less than a week after Valo issued a press release saying it expects to raise $33.5 million from investors as part of the merger. multiple institutional investors committed more money in July, and said Berry and chief financial officer Graeme Bell. Valo launched in 2019, after establishing Flagship Pioneering, a multinational of the Cambridge-based market for
Samir Kaul said that the SPAC still plans to merge with a company that would be "impactful to the world."
Value has been a lot of money but we like them as long as they progress towards a solid plan, he says in a prepared statement. We continue looking for other low-impact targets across a range of industries to deliver maximum shareholder value.
Anissa Gardizy can be reached at firstname.lastname@example.org. Follow her on twitter @anissagardizy8.