Ashington Innovation PLC (LSE:ASHI), a special purpose acquisition company (SPAC), has agreed a reverse takeover with a biotech firm less than two months after floating with the intention of attracting a fintech deal.
Under the non-binding terms, Ashington will acquire 100% of the total issued equity of Cell Therapy for £135 million in an all-share transaction, and will also seek a £3 million fundraising to finance the drug development program and working capital.
Cell Therapy is a clinical-stage biotechnology firm with a portfolio of patented cellular medicines with a lead program that successfully completed an early-stage human clinical trial in heart failure.
The shares were immediately suspended, pending the publication of a prospectus.
Ashington founder Jason Smart said: "During the past few months, we have reviewed numerous projects and believe the proposed acquisition meets our stated objective of identifying a potentially extremely valuable entity capable of sustainable development and with significant technological advantages."