Valo Health and Khosla Ventures Acquisition Co. Mutually Agree to Terminate Business Combination Agreement

Rhea-AI Summary

Khosla Ventures Acquisition Co. (KVSA) and Valo Health, LLC have mutually agreed to terminate their merger agreement due to unfavorable market conditions in the biotechnology sector. KVSA expressed confidence in Valo's strength and future potential as it progresses toward launching Phase 2 clinical trials. Valo remains committed to its growth strategy, leveraging human-centric data and AI to enhance drug discovery and development.

Positive

• Valo Health is poised to launch its first Phase 2 trial soon, indicating progress in its development pipeline.
• The decision to terminate the merger allows Valo to maintain its strategic position and focus on growth.

Negative

• The termination of the merger may lead to uncertainty regarding KVSA's future business combinations.
• Market conditions were cited as a primary factor for the merger's termination, signaling potential challenges ahead.

BOSTON and MENLO PARK, Calif., Nov. 15, 2021 /PRNewswire/ -- Valo Health, LLC ("Valo"), the technology company using human-centric data and artificial intelligence (AI) powered computation to transform the drug discovery and development process and Khosla Ventures Acquisition Co. (Nasdaq: KVSA) ("KVSA"), a special purpose acquisition company sponsored by affiliates of Khosla Ventures, LLC, announced today that both companies have mutually agreed to terminate their previously announced agreement and plan of merger (the "Business Combination Agreement"), effective immediately.

Both parties decided to terminate the Business Combination based on current market conditions, particularly in the biotechnology area.

"We formed KVSA to merge with companies that are impactful to the world as we recently did with KVSB when we merged with Nextdoor," said Samir Kaul, Founding Partner and Managing Director at Khosla Ventures. "Valo Health is a strong company and we wish them continued success as they move forward on a very solid plan. We will continue to look for other high-impact targets across a range of industries to deliver maximum shareholder value."

"We made this decision to ensure that Valo continues to be in an optimal position of strength to pursue our growth strategy and to deliver on our mission to transform drug discovery and development," said David Berry, Founder & CEO. "Our team has worked hard to ensure that all of the fundamentals of our business are strong. As we move closer to launching our first Phase 2 trial this year, our second Phase 2 trial in the first half of next year, and continue to aggressively build out the additional unique capabilities of our platform, we have tremendous momentum going into 2022 and beyond."

About Valo Health

Valo Health, LLC ("Valo") is a technology company built to transform the drug discovery and development process using human-centric data and artificial intelligence-driven computation. As a digitally native company, Valo aims to fully integrate human-centric data across the entire drug development life cycle into a single unified architecture, thereby accelerating the discovery and development of life-changing drugs while simultaneously reducing costs, time, and failure rates. The company's Opal Computational Platform^™ is an integrated set of capabilities designed to transform data into valuable insights that may accelerate discoveries and enable Valo to advance a robust pipeline of programs across cardiovascular metabolic renal, oncology, and neurodegenerative disease. Founded by Flagship Pioneering and headquartered in Boston, MA, Valo also has offices in Lexington, MA, San Francisco, CA, Princeton, NJ, and Branford, CT. To learn more, visit www.valohealth.com

About KVSA

KVSA is a special purpose acquisition company sponsored by affiliates of Khosla Ventures. Khosla Ventures manages a series of venture capital funds that make early-stage venture capital investments and provide strategic advice to entrepreneurs building companies with lasting significance. The firm was founded in 2004 by Vinod Khosla, co-founder of Sun Microsystems. Khosla Ventures has over $15 billion dollars of assets under management and focuses on a broad range of sectors including artificial intelligence, agriculture/food, consumer, enterprise, financial services, health, space, sustainable energy, robotics, VR/AR and 3D printing. Collectively, Khosla Ventures portfolio of investments has created nearly half a trillion dollars in market value.

View original content:https://www.prnewswire.com/news-releases/valo-health-and-khosla-ventures-acquisition-co-mutually-agree-to-terminate-business-combination-agreement-301424671.html

SOURCE Khosla Ventures Acquisition Co.

FAQ

What led to the termination of the merger between KVSA and Valo Health?

The merger was terminated due to unfavorable market conditions in the biotechnology sector.

What is the current status of Valo Health after the merger termination?

Valo Health remains committed to its growth strategy and is launching its first Phase 2 trial.

How does the termination of the merger affect KVSA's strategy?

KVSA will continue to seek high-impact targets across various industries to maximize shareholder value.

What are Valo Health's plans following the termination of the merger?

Valo plans to focus on its drug discovery and development efforts while pursuing its growth strategy.