An Introduction to the Big Cypress (NASDAQ: BCYP) Acquisition Corporation
It is no secret that the biggest sectors right now are the Medical and Technology fields. The BCYP SPAC narrows its entrance into the Medical field by looking at Life Sciences. Bringing with it a fantastic team with countless years of experience.
Announcing itself on the open market with an upsized IPO of $100 million (initially suggesting $75 million). The company arrived on the 11th January 2020 with the standard $10 units. These units consisted of a single share and a one-half share warrant. Closing the IPO with a respectable $115 million, it was clear that the investor interest was there.
But the company shares have not performed well since the units split, with a lack of any announcements and an overtly technical team assembly. See what we’ve discovered on our in-depth look at the Big Cypress Acquisition Corporation.
Sponsor Analysis & Context
The listed sponsor is the Big Cypress Holdings LLC with the underwriter Landenburg Thalmann, assisted by Co-Manager Brookline Capital Markets. The lack of a serious sponsor affiliated with a SPAC throws heavy reliance on the deal flow and management of the assembled team. The BCYP SPAC shifts most of this responsibility to the Upper Management.
Samuel J. Reich
The CEO and CFO of the BCYP SPAC. Mr Reich has a deep and thorough history with the field of Life Sciences. Having Co-founded Biscayne Neurotherapeutics in 2011 and sitting as Executive Chairman until its eventual sale to Supernus Pharmaceuticals (Nasdaq: SUPN) in 2018. This company had a heavy focus on the treatments for seizures.
Thereafter sitting as the VP of OPKO Ophthalmologics, a subsidiary of the publically traded OPKO Health (NASDAQ: OPK). Prior to that, Mr Reich founded and sat as VP of Acuity Pharmaceuticals until its merger with OPKO Health.
A classically trained Doctor and no stranger to the Executive level positions within the Life Sciences corporate world, the in depth understanding and knowledge that Mr Reich brings to the BCYP SPAC is truly unrivalled.
Jeffrey G. Spragens
Mr Spragens clear command and exemplary level of experience make him a fantastic selection as Chairman of the Board. Both a Co-Founder and CEO of SafeStick Medical from 2005 till 2013. This revolutionary medical device company was one of the forerunners in incision-less surgery. The company grew successfully under his leadership till its successful 2013 merger with TransEnterix, Inc. (formerly NYSE: TRXC) now known as Asensus Surgical.
Furthermore, Mr Spragens was also a founding board member of North American Vaccine, leading it through the daunting IPO process in 1990. Mr Spragens secured initial financing for the company and actually established a manufacturing facility. The company was ultimately acquired by Baxter International (NYSE: BAX) in 1999.
An avid philantroper as well as a highly successful real estate developer and entreprenuer. It was only a matter of time until he re-emerged into the Life Sciences sector with the BCYP SPAC.
As of 2017, Mr Martin has sat as the CFO of Cocrystal Pharma, Inc. (Nasdaq: COCP). This clinical-stage therapeutic development company is most likely the avenue of a targeted sector that the BCYP SPAC is looking towards. Prior to his tenure at Cocrystal, Mr Martin was the CFO of Scivac Therapeutics, an Israeli based vaccine development and manufacturing company. Mr Martin also oversaw the acquisition of the company with Levon Resources further helping the company attain a listing on both the NASDAQ and Toronto Stock Exchange.
Thereafter sitting as CFO of Motus GI Holdings, Inc. (NASDAQ: MOTS). Another Israel-based medical device company. However, his relation to the members of the BCYP SPAC began from 2011 to 2013 when he sat as the CFO of SafeStitch, Inc (alongside Jeffrey G. Spragens).
With a corporate history as an attorney lasting over 20 years with a particular focus on M&A transactions, amongst other things. With a strong focus on both the Life Sciences and Technology field, Mr Katz currently sits as a partner at Dentons (since 2015).
Although his experience at Dentons is particularly impressive, having overseen multiple mergers and acquisitions, private equity, securities law compliance and venture transactions from startups to publicly traded companies. His successful history as an entrepreneur extends to his Co-Founding of Acuity Pharmaceuticals (alongside Samuel J. Reich – CEO, CFO BCYP SPAC). Pioneering the reverse merger transaction resulting in OPKO Health.
A fantastic addition to the company, bringing with him some quality experience in relation to the M&A process as well as a legal and corporate understanding with a history in the Life Sciences field.
Stephen D. Collins, MD, PhD.
Having held multiple senior and executive positions across a number of pharmaceutical and biotech companies solidifies Dr Collins as a fantastic addition to the BCYP SPAC. Having maintained a personal hand in the drug approval process as well as the dealings related to company acquisitions, totalling over $1.5 Billion.
Most recently, Dr Collins has maintained the Chairman position of Xalud Therapeutics. This company is focused on non-viral gene therapy targeting immune modulation, a strong focus on anti-inflammatories, the company is currently in Phase 2 clinical studies.
Dr Collins has held a number of high-ranking and influential positions across the Life Sciences industry, the following is a select list:
- President and CEO of Biscayne Neurotherapeutics (alongside Samuel J. Reich – BCYP SPAC CEO & CFO)
- CEO and President of NeuroTherapeutics Pharma
- Chief Scientific Officer & VP of Ovation Pharmaceuticals
- Global Director at Johnson & Johnson
- Business development and asset acquisition at Abbott Laboratories’ Pharmaceutical
Market Sector & Target Criteria
The assembled team has a clear level of experience and networking capability through the emergent Life Sciences sector. A subsector of the rapidly growing Health and Medical industries, the BCYP SPAC is in the perfect position to strike.
The life sciences sector is a seriously underrated and overlooked facet of the marketplace. With US healthcare spending at around $3.7 trillion yearly, with an expected 5% annual growth. This is reflected globally, due to factors such as an ageing population, greater access to healthcare and the pervasiveness of chronic diseases.
Further compounding these are the major developments in the technology and medical fields that are creating an impressive crossroads of the industries. There currently exist more than 10,000 life science companies across the U.S, Europe and Israel. This is reflected in the increase of FDA approval of novel drugs, a 40% increase in the past 5 years.
As scientific innovation continues to expand our understanding of diseases processes we believe that an increasing number of early-stage life sciences companies will be formed generating a significant number of acquisition targets.BCYP SPAC – Prospectus – 2020
Although such a revolutionary and potentially world-changing aspect of the medical field, the life sciences sector is seriously ignored. Less than 10% of the SPAC market is directed towards Life Sciences. Of a total $9.9 Billion in SPAC IPO capital raised, only $170 million was directed towards Life Sciences.
This is allegedly due to a gross misalignment within the sector due to the number of multinational healthcare conglomerates that seek to purchase and acquire these high-quality private life sciences companies as opposed to the traditional, tedious IPO process.
We intend to complete an initial business combination with a target business that has an equity value of two to six times the total amount of the gross proceeds of this offering.BCYP SPAC – Prospectus – 2020
With the trust funds in excess of $100 million, this respectably valued target does have impressive scalability due to the nature of the industry and rapid developments in the medical and life sciences fields.
Post Deal Value
The generation of Post Deal Value could be cause for concern in regards to the BCYP SPAC. Although a highly talked about and an exciting new sector, the management team seriously lacks any talented and experienced members in relation to business development and growth.
Although Ilan Katz has extensive experience with the M&A process of both public and private companies. None of the assembled team at the BCYP SPAC has any SPAC experience nor any deep corporate experience. More so focused on the technical and scientific nature of the companies.
While in certain market sectors, such as Life Sciences, this is vital. But from the viewpoint of a SPAC, this is merely one facet of responsibility. The lack of a serious sponsor to help contribute, this is a serious shortcoming of the BCYP SPAC.
The BCYP SPAC is in a very precarious position with multiple checks both for and against it. The decision to enter the Life Sciences sector within this particular economic climate was certainly an intelligent one. Although recently splitting units, the share price has been on the downward trend.
The company needs to start digging deep and identifying potential targets as the prospectus remains too ambiguous and vague. The level of experience of the team members is certainly impressive but is far too diverse to predict any specific aspect of the Life Sciences sector that the BCYP SPAC would be looking at.
Throughout the health and medical fields, it has been widely predicted that the genomics industry is set to explode across the coming years. With a Trust in excess of $100 million and a target potentially 6 times larger, an emergent genomics company seems like a perfect target.
However, the lack of a dedicated sponsor in order to secure a solid deal flow and the lack of dedicated team members to assist with post-deal value generation after the SPAC-merger process leaves a lot to be desired.
Be prepared to go big or go home with the Big Cypress Acquisition Corporation!