Biotech Acquisition Company Announces Plan for New Sponsor to Make Additional Contributions to Trust Account Upon Approval of Proposed Extension Amendment

Rhea-AI Summary

Biotech Acquisition Company (NASDAQ: BIOT) announced a proposed extension of its deadline to finalize a business combination. Upon approval, IREEM LLC will contribute up to $457,500 to the Company's Trust Account for each additional month, or $0.055 per outstanding share not redeemed. The Company will hold remaining funds in an interest-bearing account. As a Cayman Islands entity, it is insulated from U.S. excise tax uncertainties under the Inflation Reduction Act. Biotech raised $230 million in its 2021 IPO, trading on Nasdaq under symbols 'BIOT' and 'BIOTW.'

Positive

• IREEM LLC's financial contribution of up to $457,500 enhances the Trust Account's stability.
• The extension may provide additional time to secure a suitable business combination.

Negative

• The need for an extension could imply challenges in finalizing a business combination.
• Continued uncertainties in the SPAC environment may impact investor confidence.

NEW YORK, Jan. 4, 2023 /PRNewswire/ -- Biotech Acquisition Company (NASDAQ: BIOT) (the "Company"), a publicly traded special purpose acquisition company, today announced that in connection with a proposed extension (the "Extension") of the time period the Company has to complete an initial business combination, as described in the Proxy Statement (as defined below), IREEM LLC, which has entered into an agreement to acquire the current sponsor's interest in the Company (as described in the Proxy Statement), will deposit into the Company's trust account (the "Trust Account") for each additional month the lesser of (i) an aggregate of $457,500 or (ii) $0.055 per share that remains outstanding and is not redeemed in connection with the Extension.

The amount deposited per share will depend on the number of public shares that remain outstanding after redemptions in connection with the Extension and the length of the extension period that will be needed to complete an initial business combination.

If the Extension is implemented, the Company plans to maintain the remaining amount in the Trust Account in an interest-bearing demand deposit account at a bank.

The Company also notes that as it is a Cayman Islands exempted company, unless and until it redomiciles into the United States, it is not affected by the current uncertainty surrounding excise tax liabilities and the implementation of the Inflation Reduction Act of 2022.

About Biotech Acquisition Company

Biotech Acquisition Company raised $230 million in its initial public offering in January 2021. The Class A ordinary shares and warrants of the Company trade on the Nasdaq Capital Market under the symbols "BIOT" and "BIOTW," respectively. The Company is a blank check company, incorporated as a Cayman Islands exempted company, formed for the purpose of effecting a merger, amalgamation, share exchange, asset acquisition, share purchase, reorganization or other similar business combination with one or more businesses.

Participants in the Solicitation

The Company and its directors and executive officers and other persons may be deemed to be participants in the solicitation of proxies from the Company's shareholders in respect of the Extension. Information regarding the Company's directors and executive officers is available in the final prospectus for the Company's initial public offering filed with the Securities and Exchange Commission (the "SEC"). Additional information regarding the participants in the proxy solicitation and a description of their direct and indirect interests are contained in the Proxy Statement.

Additional Information

The Company has filed with the SEC a definitive proxy statement (the "Proxy Statement") in connection with the extraordinary general meeting of shareholders to approve the Extension. The Company's shareholders and other interested persons are advised to read the Proxy Statement and any other relevant documents that have been or will be filed with the SEC in connection with the Company's solicitation of proxies for the Meeting because these documents will contain important information about the Company, the Extension and related matters. Shareholders may also obtain a free copy of the Proxy Statement, as well as other relevant documents that have been or will be filed with the SEC, without charge, at the SEC's website located at www.sec.gov or by directing a request to Advantage Proxy, Inc., at (877) 870-8565 (toll free) or by email at ksmith@advantageproxy.com.

Forward-Looking Statements

This press release and oral statements made from time to time by representatives of the Company may include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact included in this press release are forward-looking statements. When used in this press release, words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "would" and similar expressions, as they relate to the Company or its management team, identify forward-looking statements. Such forward-looking statements are based on the beliefs of the Company's management, as well as assumptions made by, and information currently available to, the Company's management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors detailed in the Company's filings with the SEC. All subsequent written or oral forward-looking statements attributable to the Company or persons acting on its behalf are qualified in their entirety by this paragraph. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including those set forth in the final prospectus for the Company's initial public offering filed with the SEC. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

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SOURCE Biotech Acquisition Company

FAQ

What is the purpose of the proposed extension by Biotech Acquisition Company?

The proposed extension aims to provide more time to complete an initial business combination.

How much will IREEM LLC contribute to the Trust Account?

IREEM LLC will contribute up to $457,500 or $0.055 per outstanding share not redeemed for each additional month.

What does the Trust Account hold for Biotech Acquisition Company?

The Trust Account holds funds intended for the business combination and will be maintained in an interest-bearing account.

How much capital did Biotech Acquisition Company raise in its IPO?

Biotech Acquisition Company raised $230 million in its initial public offering in January 2021.

What are the implications of being a Cayman Islands company for Biotech Acquisition Company?

As a Cayman Islands company, Biotech is not currently affected by U.S. excise tax liabilities from the Inflation Reduction Act.