CB Pharma Acquisition Corp. (CNLMU) files for an IPO of 4M units priced at $10 per unit. Each unit consists of one share of common stock, one right to purchase 1/10 of a share of common stock on the consummation of an initial business combination and one warrant to purchase 1/2 of one share of common stock at a full-share price of $11.50.
The firm is a blank check company formed by Coronado Biosciences (CNDO +0.5%). It will seek business combinations via mergers, share exchanges, asset acquisitions, share purchases, recapitalizations or reorganizations.
It has 18 months from the consummation of this offering to complete its initial business combination (up to 21 months in certain circumstances) or it will liquidate the trust account, distribute the proceeds to shareholders and dissolve.
Per NASDAQ listing rules, the target business for the initial combination must have a fair market value equal to at least 80% of the value of the trust account.
The Health Care M&A Report tallies Q1 2014 deal volume of 239 transactions valued at $49.6B. The number of deals for Q4 2013 and Q1 2013 were 278 and 212, respectively. The $49.6B total value was up 11% versus Q4 and up 217% versus Q1.
The most deals were consummated in long-term care (60), pharmaceuticals (33), biotech (26) and devices (25).
Fitch is establishing a negative 2012 outlook for pharmaceutical companies, arguing soft demand, patent expirations, and government spending cuts will take a toll on the industry; the patent expirations (I, II, III) are seen affecting LLY, BMY, and PFE the most. Fitch also sees pharmas responding to these challenges by stepping up their M&A activity. Dec. 14, 2011, 7:50 AM