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LumiraDx Withdraws $100M IPO In Favor Of $5B SPAC Merger: Bloomberg

  • LumiraDx, a UK-based provider of point-of-care diagnostics, including COVID-19 tests, has withdrawn its initial public offering plans. It had planned to list on the NASDAQ under the symbol LMDX.
  • It initially filed an IPO prospectus in January this year with a proposed deal size of $100 million.
  • Jefferies, SVB Leerink, Evercore ISI, and Raymond James were the joint book runners on the deal.
  • The withdrawal follows the announcement of a merger agreement between LumiraDx and special purpose acquisition company (SPAC), CA Healthcare Acquisition Corp (NASDAQ: CAHC), in a deal that values LumiraDx’s equity at $5 billion.
  • According to Bloomberg, no equity placement is attached to the transaction. Still, LumiraDx has secured a $300 million loan from BioPharma Credit Plc and an additional $100 million revolving credit facility from Capital One Financial Corp.
  • At $5 billion, LumiraDx’s deal is the largest of the past year by a healthcare company with a SPAC, according to data compiled by Bloomberg.
  • As of December 31, 2020, it had placed more than 7,000 instruments with over 500 customers across more than 25 countries.
  • LumiraDx’s tests can process about 30 different tests in 12 minutes or less. The company is also developing a smaller device that will be available for home use.
  • The company sees revenue between $600 million to $1 billion this year, compared with $139 million in 2020.
  • CA Healthcare Acquisition raised $115 million in its January IPO.
  • Price Action: CAHC units were trading 3.66% higher at $10.05 during the market trading session on the last check Wednesday.

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