Mana Capital Acquisition Corp. and Cardio Diagnostics, Inc. Announce Definitive Business Combination Agreement
Cardio Diagnostics, Inc., a pioneering precision cardiovascular medicine company, and Mana Capital Acquisition Corp. (Nasdaq: MAAQU; MAAQ; MAAQW; MAAQR), a special purpose acquisition company, today announced that they have entered into a definitive business combination agreement that will result in Cardio Diagnostics becoming a publicly listed company.
Upon closing of the transaction, Mana will be renamed Cardio Diagnostics Holdings, Inc. and it expects to remain listed on the Nasdaq Global Market under a new ticker symbol “CDIO”.
Founded in 2017, Cardio Diagnostics’ mission is to help physicians better detect and treat cardiovascular disease, the leading cause of death in the United States. At the core of the Company’s cardiovascular solutions is a proprietary Integrated Genetic-Epigenetic Engine™ created at the University of Iowa by company founders Meesha Dogan, Ph.D., and Rob Philibert, MD, Ph.D. This technology enables the development of a series of tests for precision prevention, early detection, and assists in personalized treatment of major types of cardiovascular diseases and associated co-morbidities. Drs. Dogan and Philbert will remain with the Combined Company as its CEO and Chief Medical Officer, respectively.
Cardio Diagnostics’ flagship product, Epi+Gen CHD™, is a clinical test that was recently commercialized to assess the 3-year risk for coronary heart disease, the most common type of heart disease and the primary cause of heart attacks. This highly sensitive and accessible test that profiles a panel of genetic and epigenetic biomarkers is radiation-free, does not require fasting and is associated with cost savings per quality-adjusted life year and improved survival.
The Combined Company is expected to have an approximate post-transaction equity market capitalization of $175 million assuming no redemptions. Cardio Diagnostics is expected to have approximately $10 million in gross proceeds raised in 2022 from common stock equity investors prior to closing. Cardio Diagnostics’ cash on the balance sheet prior to closing is expected to fund the Combined Company’s operations through the end of 2023; net proceeds raised in conjunction with the transaction will be used to support the growth strategy.
Current Cardio Diagnostics management, employees and existing shareholders will roll 100% of their existing equity holdings into equity of the Combined Company. Depending on levels of redemptions, existing Cardio Diagnostics security holders will receive between 52% and 85% of the pro forma equity as part of the transaction. The business combination has been approved by the boards of directors of both Mana and Cardio Diagnostics, and is expected to close in the second half of 2022, subject to regulatory and stockholder approvals and other customary closing conditions.
The Benchmark Company LLC is serving as the financial advisor to Mana; Becker & Poliakoff LLP is serving as legal advisor to Mana. Shartsis Friese LLP is serving as legal advisor to Cardio Diagnostics.