Estrella Biopharma going public in SPAC merger

In a sign that special purpose acquisition company (SPAC) deals may be back in favor, Estrella Biopharma and TradeUP Acquisition Corp (Nasdaq: UPTD), a publicly-traded SPAC, have entered into a definitive business combination agreement that will result in Estrella becoming a publicly listed company.

On closing of the transaction, TradeUP will be renamed Estrella Immunopharma Inc and, if all goes as planned, will be worth around $398.5 million. The deal is expected to close in the first half of 2023. TradeUP’s stockholders will own ~11.1% and its founder sponsors, officers, directors and other stockholders ~3.6%, while Estrella shareholders will hold ~81.6% of the combined company.