On November 15, 2021 Valo Health, LLC ("Valo"), the technology company using human-centric data and artificial intelligence (AI) powered computation to transform the drug discovery and development process and Khosla Ventures Acquisition Co. (Nasdaq: KVSA) ("KVSA"), a special purpose acquisition company sponsored by affiliates of Khosla Ventures, LLC, reported that both companies have mutually agreed to terminate their previously announced agreement and plan of merger (the "Business Combination Agreement"), effective immediately (Press release, Valo Health, NOV 15, 2021, View Source [SID1234595734]).
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Both parties decided to terminate the Business Combination based on current market conditions, particularly in the biotechnology area.
"We formed KVSA to merge with companies that are impactful to the world as we recently did with KVSB when we merged with Nextdoor," said Samir Kaul, Founding Partner and Managing Director at Khosla Ventures. "Valo Health is a strong company and we wish them continued success as they move forward on a very solid plan. We will continue to look for other high-impact targets across a range of industries to deliver maximum shareholder value."
"We made this decision to ensure that Valo continues to be in an optimal position of strength to pursue our growth strategy and to deliver on our mission to transform drug discovery and development," said David Berry, Founder & CEO. "Our team has worked hard to ensure that all of the fundamentals of our business are strong. As we move closer to launching our first Phase 2 trial this year, our second Phase 2 trial in the first half of next year, and continue to aggressively build out the additional unique capabilities of our platform, we have tremendous momentum going into 2022 and beyond."