LWAC - SPAC Locust Walk Acquisition inks merger deal with eFFECTOR Therapeutics

May, 27 2021 08:40 AM Locust Walk Acquisition Corp.

SPAC Locust Walk Acquisition Corp. (LWAC) and biopharma eFFECTOR Therapeutics have entered into a definitive merger agreement.The transaction is expected to close in Q3 2021. The combined company will be named eFFECTOR Therapeutics and is expected to be listed on Nasdaq under the ticker symbol “EFTR”. The transaction includes up to $175M in trust at LWAC and a concurrent, $60M PIPE financing of common stock issued at $10.00/share.Upon the closing of the business combination, eFFECTOR is expected to have cash resources of ~$210M (less any redemptions), and a total enterprise valuation of $419M. Proceeds from the deal are expected to further develop eFFECTOR's pipeline, advancing it through multiple clinical milestones. The new entity will be led by Steve Worland, Ph.D., president and CEO. The management teams of eFFECTOR and LWAC will host a webcast today, at 9:00 a.m. ET to provide a brief overview of proposed transaction.

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SPAC Locust Walk Acquisition inks merger deal with eFFECTOR Therapeutics

Company Name:	Locust Walk Acquisition Corp.
Stock Symbol:	LWAC
Market:	NASDAQ

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