Press Release June 09, 2021

Valo Health and SPAC Khosla Ventures Acquisition Co. Announce $2.8 Billion Business Combination, Focused on Drug Discovery and Development Process

The Life Sciences, Technology and SPAC teams advised Valo Health in its definitive merger agreement with Khosla Ventures Acquisition Co., a special purpose acquisition company founded by affiliates of Khosla Ventures. The transaction values the combined company at a pro forma market value of approximately $2.8 billion. The combined company is anticipated to have a pro forma cash balance of approximately $750 million before deducting anticipated transaction expenses, including existing Valo cash of approximately $250 million as of the date hereof, approximately $333 million of net cash held in KVAC's trust, after deducting deferred underwriting commissions and assuming no redemptions, and a $168.5 million private investment in public equity priced at $10 per share.

Institutional and strategic investors or their affiliates and existing Valo shareholders that have committed to participate in the PIPE include a leading integrated healthcare delivery network, Khosla Ventures, NG MGG Strategic, Caz Investments, and returning investors Koch Disruptive Technologies, Flagship Pioneering, Public Sector Pension Investment Board, Invus, State of Michigan Retirement Systems, HBM Healthcare Investments and Longevity Vision Fund. The closing of this transaction is anticipated to occur in the third quarter of 2021 and is subject to the approval of Khosla Ventures stockholders and the satisfaction or waiver of certain other customary closing conditions.

Valo Health is a technology company built to transform the drug discovery and development process using human-centric data and artificial intelligence (“AI”) computation. As a digitally native company, Valo aims to full integrate human-centric data across the entire drug development lifecycle into a single unified architecture, thereby accelerating the discovery and development of life-changing drugs while simultaneously reducing the cost, time, and failure rate.

The Goodwin team was led by Stuart Cable, Joseph Theis, Dan Espinoza, Stephanie Richards, Robert Dzialo, Kristin Eberhart and Talya Levi and included Cynthia Li, Blake Tyler, Adanna Uwazurike, Martha Koroshetz, Latrell WilliamsDan Karelitz, Matthew Dunay, Crescent Moran Chasteen, Brittany McCants, Regina Couto, Andre Amorim, Roger Cohen, Julie Tibbets, Olivia Uitto, Andrew Hess, Christina Lewis, Christina Bitter, Rich Matheny, Justin Pierce, Carrie Miller, Ce Li, Brian Mukherjee, Paul Jin, Kara Kuritz, Brady Cummins, Beth Withers and Jacqueline Klosek.

For additional details on agreement, please read the press release.