Shares of Therapeutics Acquisition Corp. (TXAC) flew out of the gates today, rising 22% on its first day on the market.

Not bad for a company that doesn't own any drugs or even any drug candidates -- at the moment, at least.

Therapeutics Acquisition Corp. is a special purpose acquisition company (SPAC), sometimes referred to as a "blank check" company because investors are basically giving management a blank check to go out and buy something.

In this case, chairman and CEO Peter Kolchinsky and CFO Matthew Hammond will look to combine Therapeutics Acquisition Corp. with one or more businesses in the healthcare industry. Therapeutics Acquisition Corp. will bring over $100 million in cash, while the other company or companies contribute their assets.

Arms shaking hands

Image source: Getty Images.

Kolchinsky co-founded RA Capital Management, which is sponsoring the SPAC, and Hammond works at RA as well, serving as a principal. With the help of RA's venture capital arm, Kolchinsky and Hammond shouldn't have too much trouble finding a company in need of capital and looking to go public. If the duo can't find a deal within 24 months, the certificate of incorporation calls for the redemption of the public shares.

By purchasing shares 22% higher than the IPO price, investors are essentially buying $0.77 on the $1 after factoring in underwriting discounts and commissions. Ultimately investors seem to think Kolchinsky and Hammond will be able to find under-priced assets that can bring immediate value to shareholders of the SPAC.

Happy hunting.