BioCentury
ARTICLE | Finance

Ebb & Flow

October 10, 2005 7:00 AM UTC

Having raised money for its shell company via an IPO in August, Ithaka (ITHKU) is now doing what it was designed to do: find a private healthcare company to merge into the shell.

ITHKU is a special purpose acquisition company (SPAC). For the SPAC model to work, investors essentially are asked to behave as limited partners in venture funds, as both groups put in money before knowing exactly where the dollars are going. ...