HH&L Acquisition Co., a SPAC that went through a $360 million IPO in early 2021, has reneged on its business combination agreement.
The Hong Kong-based blank check pulled plans to take California molecular diagnostics company DiaCarta public via a merger. In an SEC filing, HH&L said it terminated the deal last week, “based on breaches by DiaCarta of certain representations and covenants contained in the business combination agreement and fraudulent misrepresentation on the part of DiaCarta.”
DiaCarta said the allegations are “false and baseless” and “rejects them in their entirety.”
“We have worked diligently and in good faith to consummate the parties’ transaction and the company has fulfilled all its obligations and duties under the agreement,” DiaCarta said in a press release.
The companies disclosed their agreement last October. DiaCarta makes tests for a variety of cancers, Covid-19 and mpox. It also provides other diagnostic services. — Kyle LaHucik
Clay Siegall will run a public biotech again
Immunome and Morphimmune have agreed to a merger.
According to the release, the company will operate under Immunome’s name and retain the same ticker symbol {IMNM}. The company will plant its headquarters in Seattle and have research labs in West Lafayette, IN, and Exton, PA.
Former Seagen CEO Clay Siegall, who was named CEO of Morphimmune earlier this year, will serve as president, CEO and chairman of the board at Immunome.
Siegall exited Seagen last year in the wake of domestic violence allegations by his then-wife. Seagen’s board launched an investigation, and he resigned. Siegall denied the allegations and did not face charges due to “evidentiary reasons” and “insurmountable inconsistencies.” Siegall re-emerged in the biotech world earlier this year to run Morphimmune, which is based on the work of Philip Low, a repeat entrepreneur behind several startups including Endocyte and Umoja Biopharma.
The combined companies have also received a PIPE from several groups of $125 million, including Enavate Sciences, EcoR1 Capital and Redmile Group, among others. The merger and the private placement are expected to close in the fourth quarter.
“This is the first step in establishing a preeminent oncology company,” Siegall said in the release. – Tyler Patchen
