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Bill Gates - Backed LumiraDx To Go Public Through Merger With CA Healthcare

CA Healthcare Acquisition Corp. (CAHC), a special purpose acquisition company focused on investing in a growth-oriented healthcare company, announced Wednesday a definitive merger agreement with LumiraDx Ltd., a next-generation point of care or POC diagnostics testing company, backed by Bill Gates.

The transaction implies an equity valuation at closing for the combined company of in excess of $5 billion.

The deal is currently expected to close in late second quarter or early third quarter this year, subject to approval by the securityholders of each of CAHC and LumiraDx and satisfaction of customary closing conditions.

Upon closing of the transaction, LumiraDx and its common shares are expected to trade on Nasdaq under the ticker symbol "LMDX".

The combined company will be led by existing LumiraDx CEO Ron Zwanziger and the other Co-Founders, and LumiraDx's existing board and governance principles will not change.

UK -based LumiraDx, which was founded in 2014 by a group of entrepreneurs, is supported by institutional and strategic investors including the Bill & Melinda Gates Foundation, Morningside Ventures, U.S. Boston Capital Corp., and Petrichor Healthcare Capital Management, among others. The company has more than 1,200 employees across 17 countries.

LumiraDx has developed its high sensitivity antigen test for COVID-19 on the LumiraDx Platform. The test is currently being used by the National Health Service or NHS and Boots in the UK, CVS Health in the U.S., in Italy and other parts of Europe. It is also being deployed in partnership with the Bill and Melinda Gates Foundation in many African countries where access to laboratory diagnostics is limited.

The LumiraDx COVID-19 antigen test has received Emergency Use Authorization from the U.S. Food and Drug Administration and achieved CE Mark.

The LumiraDx Platform and COVID-19 antigen tests are also available in Japan and Brazil and being rolled out in more than 60 countries globally.

LumiraDx also plans to launch Amira, a low-cost mass-screening and home testing system for COVID-19, later this year, subject to regulatory approval or clearance.

The company anticipates the retail price of Amira will be $2-4 per test, significantly lower than many existing COVID-19 tests currently on the market and estimates the incremental market opportunity at $5-15 billion.

The company submitted a pre-EUA request to FDA in March 2021 and plans to achieve CE Mark for POC and over-the-counter applications in the fall of 2021.

LumiraDx estimates 2021 revenue of $600 million - $1 billion driven by the LumiraDx Platform usage, geographic expansion and Amira mass screening system.

LumiraDx also announced that it has secured two new financing commitments totaling $400 million.

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