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RA Capital's SPAC Therapeutics Acquisition prices upsized $118 million IPO at $10

July 8, 2020

Therapeutics Acquisition, a blank check company formed by RA Capital targeting the biotech industry, raised $118 million by offering 11.8 million shares at $10. The company had previously planned to raise $100 million by offering 10.0 million shares. When it first filed in June, the SPAC had planned to offer units consisting of one common share and one-third of a warrant, before it removed the warrant component in an amendment on Monday.

It is the first time a SPAC has completed an IPO by selling common shares rather than units in their roughly 20-year history, signaling ever-greater demand in the space.

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Therapeutics Acquisition is led by CEO and Chairman Peter Kolchinsky, founder and Managing Partner of RA Capital, and CFO Matthew Hammond, who is a Principal on the investment team at RA Capital. The company plans to leverage its management team's experience and target the healthcare industry, with an emphasis on the biotech sector.

Last week a similar biotech-focused SPAC, EcoR1 Capital's Panacea Acquisition (PANAU), popped 13% on its debut, the highest first-day trade for a SPAC in modern history.

Therapeutics Acquisition plans to list on the Nasdaq under the symbol TXAC. Jefferies acted as lead manager on the deal.