A SPAC called FLAC? Seattle venture capital firm to launch $100 million ‘blank check’ company

One among Seattle’s greatest and longest energetic venture capital companies is trying to leap into the SPAC enviornment.

Frazier Healthcare Partners — which has invested in biotechnology corporations since 1991 — filed with the Securities and Exchange Commission to increase $100 million for a particular objective acquisition company, often known as a SPAC.

Frazier’s SPAC is dubbed Frazier Lifescience Acquisition Company, or FLAC for brief. Frazier describes the brand new entity as a “clean test company” with the objective of reaching “a merger, share alternate, asset acquisition, share buy, reorganization or related enterprise mixture with a number of companies or entities.”

The newly-created firm — led by key members of the Frazier funding group — has not but chosen a goal. However it does plan to use its expertise to discover a company within the biotechnology enviornment, one that may can “each develop transformative therapies for sufferers in want and ship vital returns to its buyers.”

Frazier Lifescience Acquisition Company is led by four-person government group of James Topper, David Topper, Gordon Empey and Max Nowicki, all 4 of whom maintain prime positions inside Frazier. Its board consists of Michael Bigham, the previous CEO of Paratek Pharmaceutical; Robert Baltera,  the CEO of Cirius Prescribed drugs and an Entrepreneur in Residence at Frazier; Carol G. Gallagher, a venture companion at New Enterprise Associates; and Krishna Polu, the Government Vice President R&D of Equillium and a former Entrepreneur in Residence at Frazier who based Expedition Therapeutics.

The firm declined to touch upon the submitting.

One notable side of the SEC submitting: The newly-created entity might pursue a enterprise mixture with a company already linked to Frazier. If that happens, the firm stated it will search an outdoor opinion from an funding banking or accounting firm indicating that “such preliminary enterprise mixture or transaction is honest to our company from a monetary viewpoint.”

Frazier Healthcare shouldn’t be alone in its pursuit of SPAC riches. As TechCrunch noted final month, a bunch of venture companies — from Ribbit Capital to Softbank to Lux Capital — have jumped on the SPAC bandwagon. Notable buyers similar to wi-fi pioneer Craig McCaw and LinkedIn founder Reid Hoffman even have fashioned SPACs lately. Within the first 10 months of 2020, there have been 165 SPACS listed — twice as many as within the full yr of 2019, according to CNBC.

Frazier Healthcare introduced a $617 million venture capital fund earlier this yr, the firm’s tenth. Over time, Frazier has bankrolled greater than 100 corporations, taking greater than 60 to IPO or merger. Sine 2010, its portfolio corporations have acquired FDA approval for 30 medicine.

With the formation of FLAC, the firm sees a possibility to make the most of surging M&A exercise within the biotechnology area.

“The fast and growing tempo of company formation and innovation within the Biopharma atmosphere has yielded a sexy variety of compelling funding alternatives,” the firm wrote within the SEC submitting. “Pushed by the energy of the personal fundraising atmosphere, we proceed to see a profusion of top of the range personal corporations that varieties a big pool of potential targets for FLAC.”

The newly-formed company plans to commerce on the Nasdaq below the ticker image FLACU, with Credit score Suisse serving as supervisor of the providing. Extra on the SPAC from the SEC submitting here.
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