Antiviral nasal drop maker does the Nasdaq shuffle as part of minor SPAC reverse merger
Revelation Biosciences, a San Diego biotech working on antiviral nasal drops, will go public as part of a reverse merger with the Petra Acquisitions SPAC announced Tuesday.
The deal is for $73 million and comes after Revelation closed a $4.4 million Series A-1 in February. Once the transaction is completed, the newco valuation will be around $128 million. Revelation’s existing stockholders will own more than half — 54% — of the company. Revelation’s current CEO James Rolke will continue to lead the company, when the deal closes in Q4 of 2021. In a press release, he said:
We believe innovations like REVTx‑99 will enable a return to normalcy, alleviating concerns about exposure to severe respiratory infections. The mechanism of REVTx‑99, which activates the innate immune system, has the potential to reduce the exposure risks associated with travel, medical care and normal daily interactions by preventing and combating early infection. Our merger with Petra Acquisition will provide the capital needed to further our innovations and ensure they are widely available to transform the prevention and treatment landscape of viral respiratory diseases which lead to millions of deaths annually as well as immense healthcare and economic disruptions.
The company is working on an antiviral nasal drop that can be used to treat several respiratory infections, including Covid-19, the flu and rhinovirus. REVTx-99 boosts the body’s immune system to fight early infections, while REVTx-200 is being developed to be used in combination with a vaccination to offer immunity. Revelation is also developing REVDx-501, a diagnostics tool to detect respiratory viral infections.
Revelation announced the results from its Phase I trial of REVTx-99 in May, noting a 10-fold change in production of interferon-induced protein-10 from individual pre-dose levels in the 50 μg treated group. Forty-eight patients were dosed, and two received placebo.
Side effects included nasal bleeding and discomfort, headaches and rhinorrhea. Phase II is set to start in the second half of 2021.
Revelation will trade under the ticker $REVB. Before the Revelation Deal, 50 SPACs have raised $18.06 billion in biotech this year.
“Revelation Biosciences represents an opportunity to dramatically reduce the impact and severity respiratory infections have on our lives,” Petra CEO Andreas Typaldos said in a press release. “This transaction will provide James and the proven leadership team at Revelation the capital necessary to continue innovating in the world of innate immune system therapeutics and diagnostics – the first step towards a healthier future.”