Tang Capital Acquisition, a blank check company formed by Tang Capital targeting clinical-stage biotechs, filed on Tuesday with the SEC to raise up to $75 million in an initial public offering.
Tang Capital Acquisition plans to raise $75 million by offering 3.0 million shares at $25. Unlike most SPACs, it is not offering units containing warrants or rights. It would also be the first SPAC not to price its IPO at the standard $10 since Executive Network Partnering Corp offered its novel "CAPS" units in September 2020.
Sponsor Tang Capital Management has indicated a non-binding interest in purchasing $50 million of shares (67% of the deal) at the IPO price. The sponsor may buy fewer shares if outside demand is strong, but intends to buy more than half the deal.
Tang Capital Acquisition describes itself as the first no-promote SPAC (or "np-SPAC"): the company will have a single class of shares, the sponsor will hold no founder shares or warrants, and every share owned by the sponsor will be bought at the $25 IPO price. The sponsor will fund expenses, to be repaid from interest earned in the trust.
The SPAC is led by CEO and Chair Kevin Tang, the founder and President of life sciences investment firm Tang Capital Management and CEO of Aurinia Pharmaceuticals (Nasdaq: AUPH). He is joined by CFO Michael Hearne, who also serves as CFO of Tang Capital and Aurinia, and COO Ryan Cole, the COO of Aurinia Pharmaceuticals.
Tang Capital Acquisition plans to target private, development-stage biopharmaceutical companies. The SPAC may pursue a company affiliated with Tang Capital or its officers or directors. The SPAC believes that its unique corporate structure confers advantages over other SPACs, noting its single share class, lack of promote, and a lower risk of significant redemptions due to its sponsor's anticipated investment of $50 million.
The San Diego, CA-based company was founded in 2026. It plans to list on the Nasdaq under the symbol TCAA. Tang Capital Acquisition filed confidentially on August 31, 2026. LifeSci Capital and Raymond James are the joint bookrunners on the deal.
