UK Blank-Check Company’s Cash Turns It From Buyer to Target
- Transaction will enable Belluscura to fund its development
- Offer terms were changed after Belluscura shares plummeted
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For tiny companies, raising money is so tough these days that they’ll try almost anything, even if it means turning the normal order of things upside down.
Take Belluscura Plc, for example. The medical-device company, listed on the London Stock Exchange, issued roughly $7 million of stock to get its hands on about $6 million of cash, in an intriguing takeover where the target was a blank-check company. Such companies are typically created for the purpose of buying an existing business, not to be the target of an acquisition themselves.