Roivant merging with Montes Archimedes to go public in $7.3 billion SPAC deal

Switzerland-based biopharma Roivant Sciences and Montes Archimedes Acquisition (Nasdaq: MAAC), a special purpose acquisition company sponsored by Patient Square Capital, have entered into a definitive business combination agreement.

Upon closing of the transaction, outstanding shares and warrants of MAAC, shares of which were up 3.5% at $10.2 pre-market on Monday, will be exchanged for newly-issued shares and warrants of Roivant Sciences, which is expected to be listed on Nasdaq under the new ticker symbol “ROIV.”

The transaction is expected to deliver up to $611 million of gross proceeds to fund discovery and development programs. This includes up to $411 million currently held in MAAC’s trust account, as well as a concurrent $200 million common stock private investment in public equity (“PIPE”) priced at $10.00 per share. New institutional and strategic investors and existing Roivant shareholders have committed to participate in the PIPE.

Jim Momtazee, managing partner of Patient Square Capital, will join Roivant’s board of directors. Prior to founding Patient Square Capital, Mr Momtazee was a 21-year veteran of KKR where he helped form its health care investment team 20 years ago and ran that team for over a decade.

“Roivant is at the cutting edge of using technology to discover and develop transformative medicines for a wide range of serious diseases, and in a very short time they have established a remarkable track record of building subsidiaries that have run successful registrational clinical trials for approved medicines,” said Mr Momtazee.

Roivant will continue to operate under its current management team led by chief executive Matthew Gline. Roivant founder Vivek Ramaswamy will continue to serve as executive chairman.