Transaction Case Studies

M&A advisor and PIPE placement agent for $340M acquisition and $60M PIPE

Situation Assessment

  • Locust Walk Acquisition Corp. (LWAC) raised $175M as a SPAC with the intent to merge with a suitable biopharmaceutical company with a certain pre-determined criteria
  • Locust Walk served as the Manager for the SPAC and deal execution support for the management and board
  • eFFECTOR Therapeutics (NASDAQ: EFTR) is a clinical-stage biopharmaceutical company focused on the discovery and development of selective translation regulator inhibitors (STRIs) as a novel class of oncology drugs
  • EFTR sought to merge with a SPAC and raise capital to fund its clinical development programs​​

Key Activities

  • Locust Walk performed a comprehensive strategy project to identify the right criteria for a potential merger target
  • Key baseline and superlative criteria were established prior to IPO to guide the company selection process
  • As M&A advisor, evaluated > 90 prospective target companies as merger candidates for LWAC
  • Performed deep dive due diligence on 6 companies
  • Ran a full valuation and associated analytics plus a sell-deck for 2 target companies
  • Co-led the negotiation for the letter of intent (LOI) and supported definitive merger agreement negotiations
  • As a Placement Agent, Locust Walk drove an efficient capital raise process
  • Provided material feedback on EFTR management presentation in preparation for investor conversations
  • Conducted targeted outreach campaign to top-tier life-science focused PIPE investors 
  • Provided extensive guidance on deal dynamics and worked in collaboration with banking syndicate and legal teams to drive financing to close​​

Successful Outcome

  • From SPAC IPO until EFTR merger announcement, rapidly drove towards a transaction parallel processing multiple opportunities
  • LWAC IPO:  January 8, 2021
  • LOI with EFTR signed:  March 29, 2021
  • Merger and PIPE announced:  May 26, 2021
  • De-SPAC + PIPE closed:  August 25, 2021
  • Successfully advised LWAC on its $340M acquisition of EFTR
  • Served as PIPE placement agent raising a $60.7M PIPE financing in under 2 months

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