Estrella Biopharma going public in SPAC merger

In a sign that special purpose acquisition company (SPAC) deals may be back in favor, Estrella Biopharma and TradeUP Acquisition Corp (Nasdaq: UPTD), a publicly-traded SPAC, have entered into a definitive business combination agreement that will result in Estrella becoming a publicly listed company.

On closing of the transaction, TradeUP will be renamed Estrella Immunopharma Inc and, if all goes as planned, will be worth around $398.5 million. The deal is expected to close in the first half of 2023. TradeUP’s stockholders will own ~11.1% and its founder sponsors, officers, directors and other stockholders ~3.6%, while Estrella shareholders will hold ~81.6% of the combined company.

Estrella’s president and chief executive, Cheng Liu, and the current management team will continue to lead the combined company. Dr Liu will also continue in his role as president and CEO of Eureka Therapeutics, a licensing partner of Estrella.