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Life science SPAC Consonance-HFW Acquisition lowers proposed deal size by 20% ahead of $80 million IPO

November 12, 2020
CHFW.U

Consonance-HFW Acquisition, a blank check company formed by Consonance Capital targeting the life science industry, lowered the proposed deal size for its upcoming IPO on Thursday.

The Princeton, NJ-based company now plans to raise $80 million by offering 8 million units at $10. The company had previously filed to offer 10 million units at the same price. Each unit still consists of one share of common stock and one-third of a warrant, exercisable at $11.50. The company may raise an additional $25 million at the closing of an acquisition pursuant to a forward purchase agreement with its sponsor. At the revised deal size, Consonance-HFW Acquisition will raise -20% less in proceeds than previously anticipated.

The company is led by Chairman Mitchell Blutt, who is the founder and CEO of Consonance Capital and Consonance Capital Management, and a co-founder and Co-Managing Partner of Consonance Capital Partners. CEO Gad Soffer previously served as COO of Third Rock-funded Rheos Medicines and was part of the founding team at Atara Biotherapeutics. The SPAC plans on targeting the life science industry, specifically the biotech sector in the US and Europe.

Consonance-HFW Acquisition was founded in 2020 and plans to list on the NYSE American under the symbol CHFW.U. J.P. Morgan is the sole bookrunner on the deal.