MIAMI, FLORIDA, September 29, 2005 - Ithaka Acquisition Corp. (OTC Bulletin Board: ITHKU.OB) announced that it is actively seeking a partner with which it will enter into a business combination. Ithaka completed its initial public offering on August 23, 2005 and plans to use the net proceeds from such offering, including $47 million currently held in trust, to complete a business combination and/or to use as working capital for the acquired business.
Ithaka, an OTC Bulletin Board listed company, formed by:
Paul Brooke, venture partner of MPM Capital, a venture capital firm specializing in the healthcare industry, and former Global Head of Healthcare Research & Strategy at Morgan Stanley & Co.;
Eric Hecht, chief executive officer of Potomac Pharma, Inc., a private specialty pharmaceutical company, and former senior research analyst at Merrill Lynch focusing on biotechnology companies; and
John Glazer, managing director of ATP Management Group LLC, a private venture capital firm, and former principal with CSFB Private Equity, the private equity division of Credit Suisse First Boston.
A "Special Purpose Acquisition Company", or SPAC, Ithaka was designed to merge with a single operating healthcare company and to provide to that company the benefits of a public trading market, substantial capital, a built-in potential to raise substantial additional capital, and the strategic resources and insight of its founding management team.
According to Brooke, Ithaka Chairman and Chief Executive Officer, "Opportunities in the healthcare sector are abundant today. High-quality, non-U.S. private mid-market companies are seeking access to U.S. capital markets, and major healthcare companies are reengineering operating platforms while creating spinoff, divestiture and partnering deals. Additionally, in the absence of a robust IPO window, private companies that might otherwise be thinking of IPOs have matured, while their public-market opportunities may be limited."
"The partner that Ithaka is targeting must have a value equal to at least $40 million but could be as much as $500 million. The bottom line is that our capital and public equity can become currency to fuel the company's growth, whether organically or by strategic M&A. We expect to be looking at pharmaceuticals, biotechnology therapeutics, diagnostics, healthcare information systems and connectivity and medical devices and supplies," added Eric Hecht, President and Chief Financial Officer.
Ithaka completed its IPO raising gross proceeds of $53,094,600 through the sale of 8,849,100 units, including 349,100 units subject to the over-alotment option. Each unit consists of one share of common stock and two warrants. The units were sold at an offering price of $6.00 per unit. EarlyBirdCapital, Inc. acted as lead underwriter in the IPO.
About Ithaka
Ithaka, an OTC Bulletin Board Company (OTC Bulletin Board: ITHKU.OB) is a Special Purpose Acquisition Company, or SPAC. The Company was formed with the purpose of effecting a merger, capital stock exchange, asset acquisition or other similar business combination with an operating business in the healthcare industry. For more information, visit www.ithakacorp.com.
