UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. )*
Health Sciences Acquisitions Corporation 2
(Name of Issuer)
Ordinary Shares, $0.0001 par value
(Title of Class of Securities)
G4411D 109
(CUSIP Number)
40 10th Avenue, Floor 7, New York, New York 10014
(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)
August 6, 2020
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box. ☐
Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See §240.13d-7 for other parties to whom copies are to be sent.
| * | The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page. |
The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).
CUSIP No. G4411D 109 | 13D | Page 2 of 7 Pages |
| 1 | NAMES OF REPORTING PERSONS.
HSAC 2 Holdings, LLC | |||||
| 2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS) (a) ☐ (b) ☒
| |||||
| 3 | SEC USE ONLY
| |||||
| 4 | SOURCE OF FUNDS (SEE INSTRUCTIONS)
WC | |||||
| 5 | CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e)
☐ | |||||
| 6 | CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware | |||||
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH:
| 7 | SOLE VOTING POWER
0 | ||||
| 8 | SHARED VOTING POWER
4,360,956 | |||||
| 9 | SOLE DISPOSITIVE POWER
0 | |||||
| 10 | SHARED DISPOSITIVE POWER
4,360,956 | |||||
| 11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,360,956 | |||||
| 12 | CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
☐ | |||||
| 13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
38.9% | |||||
| 14 | TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
OO | |||||
CUSIP No. G4411D 109 | 13D | Page 3 of 7 Pages |
Schedule 13D
| Item | 1. Security and Issuer. |
This statement relates to the ordinary shares, $0.0001 par value (the “Ordinary Shares”), of Health Sciences Acquisitions Corporation 2 (the “Issuer”), having its principal executive office at 40 10th Avenue, Floor 7, New York, New York 10014.
| Item | 2. Identity and Background |
This statement is being filed by HSAC 2 Holdings, LLC, a Delaware limited partnership (“Holdings” or the “Reporting Person”).
The address of the principal business office of Holdings is 40 10th Avenue, Floor 7, New York, New York 10014.
The principal business of Holdings is to act as the Issuer’s sponsor in connection with the IPO and potential business combination of the Issuer.
During the five years prior to the date hereof, Holdings has not been convicted in a criminal proceeding or been a party to a civil proceeding ending in a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws.
Dr. Roderick Wong, M.D. (“Dr. Wong”), who is Chairman of the Board of the Issuer as well as its Chief Executive Officer and President, is a member of the three-member board of directors of the Reporting Person. Dr. Wong also is the Managing Partner and Chief Investment Officer of RTW Investments, LP (“RTW Investments”). Naveen Yalamanchi, M.D., Chief Financial Officer and Executive Vice President of the Issuer, is a member of the Reporting Person’s board of directors, and is a Partner and Portfolio Manager at RTW Investments. Alice Lee, the Issuer’s Vice President of Operations and Secretary and Treasurer, also serves on the Reporting Person’s board of directors, and is Senior Counsel at RTW Investments.
| Item | 3. Source and Amount of Funds or Other Consideration. |
The source of funds used for the purchase of the Ordinary Shares reported herein was the working capital of Holdings. The Ordinary Shares reported herein were purchased for an aggregate purchase price of $4,528,750. On June 12, 2020, the Issuer issued 718,750 shares of the Ordinary Shares to Holdings. On August 3, 2020, Holdings received 406,250 shares of the Ordinary Shares pursuant to a dividend declared by the Issuer in connection with the upsizing of its initial public offering (“IPO”).
Item 4. Purpose of Transaction.
Holdings acquired the Ordinary Shares pursuant to its role as sponsor in connection with the Issuer’s IPO and potential business combination.
On July 4, 2022, the Issuer entered into an agreement and plan of merger agreement (as amended on July 21, 2022, the “Merger Agreement”) with HSAC Olympus Merger Sub, Inc., a Delaware corporation and wholly owned subsidiary of the Issuer (“Merger Sub”), and Orchestra BioMed, Inc., a Delaware corporation (“Orchestra”). Pursuant to the terms of the Merger Agreement, a business combination between the Issuer and Orchestra (the “Business Combination”) will be effected in two steps. First, before the closing of the Business Combination, the Issuer will deregister in the Cayman Islands and domesticate as a Delaware corporation. Second, at the closing of the Business Combination, Merger Sub will merge with and into Orchestra, with Orchestra surviving such merger as the surviving entity. Upon consummation of the Business Combination, Orchestra will become a wholly owned subsidiary of the Issuer. The Issuer will then change its name to “Orchestra BioMed Holdings, Inc.”
CUSIP No. G4411D 109 | 13D | Page 4 of 7 Pages |
Simultaneously with the execution of the Merger Agreement, the Issuer and Orchestra entered into separate forward purchase agreements (the “Forward Purchase Agreements”) with certain funds managed by RTW Investments (the “RTW Funds”) and Covidien Group S.à.r.l., an affiliate of Medtronic plc (“Medtronic” and the RTW Funds, each a “Purchasing Party”), pursuant to which each of the Purchasing Parties agreed to purchase approximately $10.0 million of the Issuer’s Ordinary Shares, for a total of approximately $20.0 million, less the dollar amount of the Issuer’s Ordinary Shares holding redemption rights that the Purchasing Party acquires and holds until immediately prior to the domestication.
Simultaneously with the execution of the Merger Agreement and Forward Purchase Agreements, the Issuer, Orchestra, and the RTW Funds entered into a Backstop Agreement (the “Backstop Agreement”) pursuant to which the RTW Funds, jointly and severally, agreed to purchase such number of the Issuer’s Ordinary Shares at a price of $10.00 per share to the extent that the amount of Parent Closing Cash (as defined in the Merger Agreement) as of immediately prior to the closing of the Business Combination is less than $60 million (inclusive of the $10 million commitment by the RTW Funds pursuant to the Forward Purchase Agreement described above).
On August 3, 2020, Holdings entered into an agreement with the Issuer to purchase an aggregate of 2,500,000 of the Ordinary Shares or their equivalent in the securities of a target company for an aggregate purchase price of $25,000,000 prior to, concurrently with, or following the closing of a business combination. This commitment was satisfied in two parts: (a) the RTW Funds made an investment of $15,000,000 in Orchestra’s Series D financing, and (b) on July 22, 2022, the RTW Funds purchased 1,000,000 shares in the Issuer pursuant to the relevant Forward Purchase Agreement.
On August 6, 2020, Holdings purchased 1,500,000 private warrants (the “Private Warrants”) from the Issuer for an aggregate purchase price of $1,500,000. Each Private Warrant entitles Holdings to purchase one share of the Ordinary Shares at a price of $11.50 and will become exercisable 30 days after the completion of the Issuer’s initial business combination. In connection with the Business Combination, Holdings agreed to forfeit 750,000 of the Private Warrants for no consideration.
Holdings expects to continuously review its investment in the Issuer and, depending on various factors including but not limited to, its activities as the sponsor of the Issuer, the price of the Ordinary Shares, the terms and conditions of the transaction, prevailing market conditions and such other considerations as Holdings deems relevant, may at any time or from time to time, and subject to any required regulatory approvals, acquire additional Ordinary Shares, preferred stock or other securities convertible into or exercisable or exchangeable for Ordinary Shares on the open market, in privately-negotiated transactions, directly from the Issuer, or upon the exercise or conversion of securities convertible into or exercisable or exchangeable for Ordinary Shares.
Except as indicated herein, Holdings, as a shareholder of the Issuer, does not have any plans or proposals that relate or would result in any of the transactions or other matters specified in clauses (a) though (j) of Item 4 of Schedule 13D. Each Reporting Person may, at any time and from time to time, review or reconsider its or his position and/or change its or his purpose and/or formulate plans or proposals with respect thereto.
The information set forth in Item 3 above is incorporated by reference to this Item 4.
Item 5. Interest in Securities of the Issuer.
| (a) | Holdings is the record owner of 4,360,956 shares of the Ordinary Shares. |
The percentage of outstanding Ordinary Shares of the Issuer which may be deemed to be beneficially owned by each Reporting Person is set forth on Line 13 of such Reporting Person’s cover sheet. Such percentage was calculated based on 11,212,117 shares of Ordinary Shares reported by the Issuer to be outstanding on the Issuer’s Form 10-Q filed with the Securities and Exchange Commission on August 15, 2022.
CUSIP No. G4411D 109 | 13D | Page 5 of 7 Pages |
Holdings could be deemed to constitute a Section 13(d) group with RTW Investments, RTW Master Fund, Ltd. (“RTW Master Fund”), RTW Innovation Master Fund, Ltd. (“RTW Innovation”), and Dr. Wong. RTW Master Fund has reported beneficial ownership of 352,577 shares of Ordinary Shares. RTW Innovation has reported beneficial ownership of 647,423 shares of Ordinary Shares. As the investment manager of RTW Master Fund and RTW Innovation, RTW Investments may be deemed to own beneficially the Ordinary Shares held by those two entities. As the Managing Partner of RTW Investments, Dr. Wong may be deemed to own beneficially the Ordinary Shares held by RTW Master Fund and RTW Innovation. In aggregate, Holdings, RTW Investments, RTW Master Fund, RTW Innovation, and Dr. Roderick Wong, M.D. would beneficially own an aggregate of 5,360,956 shares of Ordinary Shares, representing 47.8% of the outstanding shares. Holdings disclaims the existence of a 13(d) group.
| (b) | Regarding the number of shares as to which such person has: |
| (i) | sole power to vote or to direct the vote: See line 7 of cover sheets |
| (ii) | shared power to vote or to direct the vote: See line 8 of cover sheets |
| (iii) | sole power to dispose or to direct the disposition: See line 9 of cover sheets |
| (iv) | shared power to dispose or to direct the disposition: See line 10 of cover sheets |
| (c) | Holdings has not effected any transaction in the Ordinary Shares during the last 60 days. |
| (d) | No other person is known to have the right to receive or the power to direct the receipt of dividends from, or any proceeds from the sale of, Ordinary Shares beneficially owned by Holdings. |
| (e) | Not applicable. |
Item 6. Contracts, Arrangements, Undertakings or Relationships with Respect to Securities of the Issuer.
The information set forth it Item 4 herein is incorporated by reference.
Item 7. Material to be Filed as Exhibits.
Exhibit 1 Agreement and Plan of Merger, dated as of July 4, 2022, by and among Health Sciences Acquisitions Corporation 2, HSAC Olympus Merger Sub, Inc., and Orchestra BioMed, Inc. (incorporated by reference to Exhibit 2.1 of Health Sciences Acquisitions Corporation 2’s Form 8-K filed on July 5, 2022).
Exhibit 2 Forward Purchase Agreement, dated as of July 4, 2022, by and among Health Sciences Acquisitions Corporation 2, Orchestra BioMed, Inc., and Covidien Group S.à.r.l. (incorporated by reference to Exhibit 10.1 of Health Sciences Acquisitions Corporation 2’s Form 8-K filed on July 5, 2022).
Exhibit 3 Forward Purchase Agreement, dated as of July 4, 2022, by and among Health Sciences Acquisitions Corporation 2, Orchestra BioMed, Inc., and RTW Master Fund, Ltd., RTW Innovation Master Fund, Ltd., and RTW Venture Fund Limited (incorporated by reference to Exhibit 10.2 of Health Sciences Acquisitions Corporation 2’s Form 8-K filed on July 5, 2022).
CUSIP No. G4411D 109 | 13D | Page 6 of 7 Pages |
Exhibit 4 Backstop Agreement, dated as of July 4, 2022, by and among Health Sciences Acquisitions Corporation 2, Orchestra BioMed, Inc., RTW Master Fund, Ltd., RTW Innovation Master Fund, Ltd., and RTW Venture Fund Limited (incorporated by reference to Exhibit 10.3 of Health Sciences Acquisitions Corporation 2’s Form 8-K filed on July 5, 2022).
Exhibit 5 Purchase Agreement dated as of August 3, 2020, between Health Sciences Acquisitions Corporation 2 and HSAC 2 Holdings, LLC (incorporated by reference to Exhibit 10.8 of Health Sciences Acquisitions Corporation 2’s Form 8-K filed on August 7, 2020).
Exhibit 6 Subscription Agreement, dated August 3, 2020, between Health Sciences Acquisitions Corporation 2 and HSAC 2 Holdings, LLC (incorporated by reference to Exhibit 10.6 of Health Sciences Acquisitions Corporation 2’s Form 8-K filed on August 7, 2020).
CUSIP No. G4411D 109 | 13D | Page 7 of 7 Pages |
SIGNATURE
After reasonable inquiry and to the best of its knowledge and belief, each of the undersigned certifies that the information set forth in this statement is true, complete and correct.
EXECUTED this 12th day of October, 2022.
| HSAC 2 HOLDINGS, LLC | ||
| By: | /s/ Roderick Wong | |
| Name: Roderick Wong, M.D. | ||
| Title: Director | ||
