Apdemanden Signs Business Combination Agreement with Brookline Capital

Apdemanden has entered into a definitive business combination agreement with Special Purpose Acquisition Company (SPAC) Brookline Capital Acquisition to create a new immuno-oncology company.

Upon closing of the agreement, the combined company will be called Apexigen, which will be led by current Apexigen President and CEO, Dr. Xiaodong Yang.

In accordance with the agreement, the deal values ​​the combined company Apexigen at $205 million on an equity basis.

At closing, the gross proceeds of the transaction available to the Company will be approximately $73 million. These proceeds include nearly $58 million in cash held in Brookline’s trust account and $15 million from a private equity investment (PIPE).

A group of healthcare investors and current shareholders of Aexigen will participate in the transaction through $15 million of common stock and PIPE warrants for $10 per unit.

The fusion product will be used to advance Phase II development of Aexigen’s CD40 agonist antibody, sotigalimab, for various oncology indications.

Additionally, Lincoln Park and Brookline signed a committed investment agreement under which the former may acquire up to an aggregate of $50 million of common stock in the combined company over two years.

The agreement has been unanimously approved by the boards of directors of Brookline and Apexigen.

Subject to necessary approvals and other closing conditions, the agreements are expected to close in July of this year.

Dr. Yang said, “This transaction brings Apexigen to the public and strengthens our track record for advancing the Phase II development of our lead program, sotigalimab, as well as maximizing the therapeutic potential of the company’s APXiMAB antibody discovery platform. Apdemanden and the innovative pipeline of other antibody therapeutics.

“We remain encouraged by emerging data from ongoing Phase II clinical trials of sotigalimab, a potentially first-in-class and best-in-class CD40 agonist that may provide superior clinical benefit in several important cancer indications.