Effector Therapeutics Inc., a biopharmaceutical company focused on the development of selective translation regulation inhibitors for the treatment of cancer, and Locust Walk Acquisition Corp., a blank-check company formed for the purpose of acquiring or merging with one or more businesses, today announced they have entered into a definitive merger agreement. Upon closing of the transaction, anticipated to occur in the third quarter of 2021, the combined company will be named Effector Therapeutics Inc. and will be led by Steve Worland, president and CEO. The combined company’s common stock is expected to be listed on the Nasdaq Capital Market under the ticker symbol “EFTR.”
“This milestone is the beginning of a significant new chapter in Effector history, as we build on our strong scientific foundation as leaders in the development of selective translation regulator inhibitors as a new class of therapies for cancer,” said Worland. “We’re entering into this transaction to accelerate Effector’s growth with the goal of delivering a new class of medicines to help drive improved health outcomes for people with cancer. We are excited to be selected by the management and board of LWAC, whose members have vast experience as investors and operating executives in the biotechnology industry.”
“After evaluating more than 90 biotech companies, Effector emerged as the best choice for our business combination,” stated Chris Ehrlich, CEO and director of LWAC. “Effector is at the cutting-edge of targeting translation regulation, which has the potential to simultaneously address multiple drivers of cancer. We are confident that the highly experienced management team with a track record of pipeline advancement and business accomplishments are prepared to lead Effector as a publicly listed company. This transaction positions Effector to reach important value inflection points for our impressive list of stakeholders.”
Credit Suisse and Stifel are acting as lead PIPE placement agents, and Credit Suisse is also acting as capital markets advisor to Effector. Locust Walk Securities is also acting as PIPE placement agent. Latham & Watkins LLP is acting as legal counsel to Effector. Cantor Fitzgerald is acting as the lead capital markets advisor to LWAC. JMP Securities and Mizuho Securities are also acting as capital markets advisors to LWAC. Mintz, Levin, Cohn, Ferris, Glovsky and Popeo PC is serving as legal counsel to LWAC.