Sagaliam Acquisition Corp. (SAGA) Amends LOI with Enzolytics
by Marlena Haddad on 2023-06-30 at 10:07am

Sagaliam (NASDAQ:SAGA) announced this morning that it has amended a non-binding letter of intent (LOI) for the purchase of Biogenysis, Inc. and Virogentics Inc., operating subsidiaries of Enzolytics Inc. (Pink: ENZC).

The LOI was initially announced on April 17, but at that time, the parties expected a definitive agreement to be finalized by May 19.

Today’s amendment significantly increases the combined purchase price from $250 million to $450 million. Sagaliam plans to raise additional capital through a PIPE transaction.

Virogentics intends to use the funds raised to support clinical trials of its anti-HIV therapeutic ITV-1, complete the African Project, and advance the marketing of its IPF Immune.

As for Biogenysis, it will use the funds to finalize the production and testing of species-specific monoclonal antibodies for COVID-19, HIV, and Feline Leukemia. This funding will enhance Biogenysis’ drug discovery capabilities using proprietary AI technology, expand its IP portfolio, and advance healthcare towards predictive, preventive, personalized, and participatory medicine.

Further details and clarification on the transaction will be provided as final terms are negotiated.

Earlier this year, Sagaliam terminated its proposed merger with Arabian Entertainment Company (AEC), just a few months after their deal announcement.

The SPAC originally raised approximately $116 million in total gross proceeds from its December 2021 IPO. However, it saw 91.68% of its trust removed during a December 2022 meeting, leaving it with roughly $9.8 million post-vote. It currently has a completion deadline of July 23, but can extend its timeline until April 23, 2024.

 

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