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CONSONANCE - HFW ACQUISITION CORP . NOTES TO FINANCIAL STATEMENTS DECEMBER 31 , 2020 NOTE 1. DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS Consonance - HFW Acquisition Corp. ( the “ Company ” ) is a blank check company incorporated as a Cayman Islands exempted company on August 21 , 2020. The Company was formed for the purpose of effecting a merger , share exchar asset acquisition , share purchase , reorganization or similar business combination with one or more businesses ( “ Business Combination ” ) . The Company is not limited to a particular industry or geographic region for purposes of completing a Business Combination . The Company is an early stage and emerging growth company and , as such , the Company is subject to all of the risks associated with early stage and emerging growth companies . As of December 31 , 2020 , the Company had not commenced any operations . All activity for the period from August 21 , 2020 ( inception ) through December 31 , 2020 relates to the Company's formation and the initial public offering ( " Initial Public Offering " ) , which is described below . The Company will not generate any operating revenues until after the completion of a Business Combination , at the earliest . The Company will generate non - operating income in the form of interest income from the proceeds derived from the Initial Public Offering . The registration statement for the Company's Initial Public Offering became effective on November 18 , 2020. On November 23 , 2020 , the Company consummated the Initial Public Offering of 8,000,000 units ( the “ Units ” and , with respect to the Class A ordinary shares included in the Units sold , the “ Public Shares ” ) , at $ 10.00 per Unit , generating gross proceeds of $ 80,000,000 which is described in Note 3 . Simultaneously with the consummation of the Initial Public Offering , the Company consummated the sale of 410,000 units ( the " Private Placement Units " ) at a price of $ 10.00 per Private Placement Unit in a private placement to Consonance Life Sciences ( the " Sponsor " ) , generating gross proceeds of $ 4,100,000 , which is described in Note 4 . Following the consummation of the Initial Public Offering on November 23 , 2020 , an amount of $ 80,000,000 ( $ 10.00 per Unit ) from the net proceeds of the sale of the Units in the Initial Public Offering and the sale of the Private Placement Units was placed in a trust account ( the “ Trust Account " ) and invested in U.S. government securities , within the meaning set forth in Section 2 ( a ) ( 16 ) of the Investment Company Act of 1940 , as amended ( the " Investment Company Act " ) , with a maturity of 185 days or less , or in any open ended investment company that holds itself out as a money market fund meeting certain conditions of Rule 2a - 7 of the Investment Company Act , as determined by the Company , until the earlier of : ( i ) the completion of a Business Combination and ( ii ) the distribution of the funds in the Trust Account to the Company's shareholders , as described below . On December 1 , 2020 , the underwriters fully exercised their over - allotment option , resulting in an additional 1,200,000 Units issued for an aggregate amount of $ 12,000,000 . In connection with the underwriters ' full exercise of their over - allotment option , the Company also consummated the sale of an additional 24,000 Private Placement Units at $ 10.00 per Private Placement Unit , generating total proceeds of $ 12,240,000 . A total of $ 12,000,000 was deposited into the Trust Account , bringing the aggregate proceeds held in the Trust Account to $ 92,000,000 . Transaction costs amounted to $ 5,658,864 , consisting of $ 1,840,000 of underwriting fees , $ 3,220,000 of deferred underwriting fees and $ 598,864 of other offering costs . The Company's management has broad discretion with respect to the specific application of the net proceeds of the Initial Public Offering and the sale of the Private Placement Units , although substantially all of the net proceeds are intended to be applied generally toward completing a Business Combination . The Company must complete its initial Business Combination with one or more target businesses that together have a fair market value equal to at least 80 % of the net assets held in the Trust Account ( excluding any deferred underwriting commissions held in the Trust Account and taxes payable on the interest earned on