KBL Merger Corp. IV (NASDAQ: KBLM ), a special purpose acquisition corporation (SPAC) that previously announced the signing of a definitive agreement to acquire CannBioRx Life Sciences Corp., announced today that it has successfully closed a bridge financing, the proceeds of which will be used for working capital to complete the merger and advance its clinical programs. At the conclusion of the financing, Dr. James Woody will become Chief Executive Officer of 180 Life Sciences, and Dr. Larry Gold will be appointed to its Board of Directors. The Company also filed with the Securities Exchange Commission (SEC) to extend the deadline to complete an initial business combination.
180 Life Sciences is a clinical-stage biotech company developing two major drug platforms that treat inflammatory diseases and address large markets. The first platform is a novel program to treat fibrosis and inflammation using anti-TNF, with its lead program in Phase 2b/3 and two additional clinical trials that are expected to begin after the completion of the merger. The second platform involves the identification of novel synthetic cannabinoid compounds to treat pain in diseases such as arthritis.
"On behalf of our Chairman, George Hornig, I want to thank the team from KBL and the Board for their tireless dedication to identifying and developing this opportunity. We remain encouraged by the overall strength of the biotechnology sector and the fact that SPACSs have become a large asset class that has proven to be an advantageous route to access the public markets. This bridge financing should take the Company through the conclusion of the business combination," said Dr. Marlene Krauss, CEO of KBL Merger Corp. "Our scientific team has unparalleled expertise and a proven track record of developing unique drugs that improved the lives of millions of people and created companies that were later sold for billions of dollars. We have assembled this world-class team to build a unique, global biotechnology company dedicated to developing novel drugs in a cost-effective manner."
Prior to joining 180 Life Sciences, Dr. James Woody served as the founding CEO of OncoMed Pharmaceuticals, as well as President and General Manager of Roche Bioscience. In addition, he served as Chief Scientific Officer and Senior Vice President of R&D for Centocor, where he led the team responsible for developing Remicade, the first of the TNF inhibitor biologics in collaboration with Prof. Sir Marc Feldmann, one of the founders and Co-Chairman of 180 Life Sciences. Currently, Dr. Woody is a General Partner with Latterell Venture Partners, a Silicon Valley-based venture capital firm specializing in investing in early-stage healthcare companies.
Dr. Larry Gold, Ph.D., is an internationally recognized scientist, member of the U.S. National Academy of Sciences and biotech entrepreneur who founded NeXagen, Inc., which later became NeXstar Pharmaceuticals, Inc., and merged with Gilead Sciences, Inc. Dr. Gold also co-founded the biotech company Synergen, Inc., that was later acquired by Amgen. He currently serves as Chairman of SomaLogic, a company that he founded and formerly served as CEO. He has taught at the University of Colorado Boulder since 1970 and served as Chair of the molecular, cellular and developmental biology department from 1988 to 1992.
Commenting on the appointments of Drs. Woody and Gold, Dr. Krauss added, "We are fortunate that Jim Woody chose to join 180 Life Sciences, as he brings to bear more than 25 years of significant clinical and operational experience in both large and small pharma, as well as has a proven track record of bringing drugs to commercialization, as evidenced by the success of Remicade. We are equally privileged to have Dr. Gold join our Board and look forward to gaining access to his experience in founding, growing and selling successful biotech companies. Dr. Woody will immediately become CEO of 180 Life Sciences, and I will continue in my role as CEO of the SPAC, shepherding the transaction until the close of the merger."
Dr. Woody continued, "I am excited to join the team from 180 Life Sciences. Not only does the Company boast a tremendous pipeline of innovative therapies that use anti-TNF and cannabinoids to treat inflammatory diseases, it also boasts an unparalleled team of pioneering and world-renowned scientists leading the charge – namely, Prof. Sir Marc Feldmann and Prof. Lawrence Steinman. I look forward to working with them to improve the way in which inflammatory diseases are treated, and I am confident that my skills and experience are highly complementary to this effort."
Additional Background on 180 Life Sciences Corp.
180 Life Sciences' three clinical programs address the following indications:
- Dupuytren's contracture, a fibrotic disease of the hand, which is in Phase 2b/3, with results expected in Q1 2021.
- Frozen shoulder, with a grant to initiate the clinical study awarded by the National Institute of Health Research, U.K.
- Post-operative cognitive delirium disorder and dysfunction, a major unmet clinical need occurring in the elderly patient population, most commonly after hip fracture repair.
Additionally, 180 Life Sciences' pre-clinical discovery programs include a cannabinoid program focused on the development of unique, FDA-approved, pharmaceutical-grade cannabinoids to treat pain that is specifically focused on arthritis.
In addition to Dr. Woody, 180 Life Sciences will be comprised of the following leadership team:
Prof. Sir Marc Feldmann, Co-Chairman of the Board of Directors – A leading immunologist, professor at the University of Oxford and the inventor of anti-TNF (tumor necrosis factor) therapy, which is the world's biggest-selling drug class, with sales of approximately $40 billion in recent years. With his team, he discovered the advantages of targeting TNF, as well as using combination therapies. With Dr. Woody, Centocor Biotech (now Janssen Biotech, a part of Johnson & Johnson) licensed Prof. Feldmann's key patent to develop Remicade, which is one of the highest-selling drugs in the world, and AbbVie licensed his patents for use with Humira, the world's best-selling drug.
Prof. Lawrence Steinman, Co-Chairman of the Board of Directors – Professor of Neurology and Pediatrics at Stanford University. His work led to the development of Tysabri, a highly effective treatment for multiple sclerosis and inflammatory bowel disease. Tysabri was sold to Royalty Pharma for $2.85 billion in 2017. He also founded Neurocrine Biosciences, a NASDAQ-listed company with an approximately $11.9 billion market cap. His lab at Stanford University is dedicated to understanding the pathogenesis of autoimmune diseases, particularly multiple sclerosis. He served on the Board of Centocor and currently serves as an advisor to Atreca. Prof. Steinman received a B.A. from Dartmouth College and M.D. from Harvard Medical School.
Dr. Jonathan Rothbard, Chief Scientific Officer – Responsible for helping to establish a variety of biotech startups, including Amylin Pharmaceuticals (which was sold to AstraZeneca and Bristol-Myers Squibb for $7 billion), ImmuLogic, CellGate and Cardinal Therapeutics. Dr. Rothbard completed his post-doctoral fellowship with Dr. Gerald Edelman at Rockefeller University and served as Head of the Molecular Immunology laboratory at the Imperial Cancer Research Fund in London before returning to Stanford University.
About KBL Merger Corp. IV
KBL Merger Corp. IV is a blank check company that raised $115 million with the goal of identifying and acquiring a company with a strong value proposition mainly in the U.S. healthcare industry. KBL Merger Corp. IV focused on this industry due to its management's deep experience in this large, growing segment of the U.S. economy. This is Dr. Krauss' fourth SPAC in the healthcare space. She has invested more than $1 billion through three institutional venture capital funds, numerous IPOs and three prior SPACS.
