LONDON, UK: Ashington Innovation (LSE:ASHI), a SPAC that focuses on technology businesses, has announced that it has signed a non-binding term sheet to acquire Cell Therapy Limited, a clinical stage biotechnology firm with a portfolio of patented cellular medicines.

Cell Therapy is developing novel therapies for heart failure, based on its proprietary technology that uses stem cells to regenerate damaged heart tissue. The company has successfully completed an early-stage human clinical trial and has secured patents in the US, UK, EU and Asia.

The deal values Cell Therapy at £135 million and will be paid entirely in Ashington Innovation shares. The transaction is subject to due diligence, regulatory approvals, shareholder votes and a fundraising of up to £3 million to finance the drug development program and working capital.

As a result of the deal, Ashington Innovation’s shares have been suspended from trading on the London Stock Exchange, pending the publication of a prospectus or an announcement that the deal is not proceeding. The company expects to complete the transaction in the first quarter of 2024.

Jason Smart, Founder of Ashington Innovation, commented: “We are delighted to have agreed a heads of terms to acquire Cell Therapy. We believe the proposed acquisition meets our stated objective of identifying a potentially extremely valuable entity capable of sustainable development and with significant technological advantages.

The regenerative medicine and biotechnology sector presents compelling opportunities to create value for shareholders and the proposed acquisition presents a high-quality target with an experienced and expert leadership. This is a very exciting opportunity to bring a scalable business with a strong track record to the public markets.”

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