Tango Bypasses IPO Route With SPAC Merger

Tango Therapeutics, Inc. will bring its cash balance to $553m later this year and become a publicly traded company in the US when it closes a merger with the special purpose acquisition corporation (SPAC) known as BCTG Acquisition Corp., which was sponsored by frequent biopharmaceutical company investor Boxer Capital. Tango will raise $353m through the deal announced on 14 April, including $167m held in trust by BCTG and $186m from a concurrent private investment in public equity (PIPE) financings.

SPACs, also known as blank check companies, launch initial public offerings to raise money that facilitates a merger with another firm in hopes that the target company eventually generates a significant return on investment. Boxer Capital launched the IPO for BCTG in September, raising gross proceeds of $166.8m from the sale of 16.7 million shares at $10 each, with plans to combine with a company developing targeted oncology therapeutics