SPAC engineering reaches new heights as scrapped deal sends pharma firm's stock plunging 36%
- After a novel
SPACbuyback deal imploded, shares of clinical-stage biopharma company Immunovantplunged as much as 35.7% on Tuesday, according to a Bloomberg report.
- The deal collapsed on Monday, sending shares in Immunovant tumbling below $7 on Tuesday from above $10 last week.
- Exotic SPAC deals have at times received the regulatory side-eye.
After a novel SPAC buyback deal imploded, shares of clinical-stage biopharma company Immunovant plunged as much as 35.7% on Tuesday, according to a Bloomberg report.
The mind-bending deal, according to Bloomberg, collapsed on Monday after Roviant announced it would simply go public via SPAC, without any of the other maneuvers. Instead of taking over Immunovant, Roviant will invest $200 million in the company through stock purchases, according to statements from both firms.
The news sent Immunovant stock tumbling below $7 on Tuesday from above $10 before the weekend. Shares were worth more than $50 late last year.
"Roivant and Immunovant explored a range of possible transactions over the past few months, including a potential acquisition by Roivant of the minority interest in Immunovant, and ultimately agreed on this significant investment," said Matt Gline, Roivant's CEO, in a statement. Immunovant's CEO added that the $200 million would go toward drug development.
Exotic SPAC deals have at times received the regulatory side-eye. In July, legendary investor
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