LumiraDx Withdraws $100M IPO In Favor Of $5B SPAC Merger: Bloomberg

Author: Vandana Singh | April 07, 2021 12:23pm

LumiraDx, a UK-based provider of point-of-care diagnostics, including COVID-19 tests, has withdrawn its initial public offering plans. It had planned to list on the NASDAQ under the symbol LMDX.
It initially filed an IPO prospectus in January this year with a proposed deal size of $100 million.
Jefferies, SVB Leerink, Evercore ISI, and Raymond James were the joint book runners on the deal.
The withdrawal follows the announcement of a merger agreement between LumiraDx and special purpose acquisition company (SPAC), CA Healthcare Acquisition Corp (NASDAQ: CAHC), in a deal that values LumiraDx’s equity at $5 billion.
According to Bloomberg, no equity placement is attached to the transaction. Still, LumiraDx has secured a $300 million loan from BioPharma Credit Plc and an additional $100 million revolving credit facility from Capital One Financial Corp.
At $5 billion, LumiraDx’s deal is the largest of the past year by a healthcare company with a SPAC, according to data compiled by Bloomberg.
As of December 31, 2020, it had placed more than 7,000 instruments with over 500 customers across more than 25 countries.
LumiraDx’s tests can process about 30 different tests in 12 minutes or less. The company is also developing a smaller device that will be available for home use.
The company sees revenue between $600 million to $1 billion this year, compared with $139 million in 2020.
CA Healthcare Acquisition raised $115 million in its January IPO.
Price Action: CAHC units were trading 3.66% higher at $10.05 during the market trading session on the last check Wednesday.