On The Fly: The Week In SPAC News - Sunday, May 9

Entrepreneur, Idea, Competence, Vision, Target

In SPAC news this week, gym operator Equinox is said to be in talks to go public via one of Chamath Palihapitiya's special purpose acquisition companies, while Roivant Sciences and Montes Archimedes Acquisition Corp. announced that they have entered into a merger agreement.

EQUINOX IN TALKS WITH PALIHAPITIYA SPAC

Bloomberg's Gillian Tan and Crystal Tse reported that luxury gym operator Equinox has held talks to go public by merging with Social Capital Hedosophia Holdings Corp. VI (IPOF). One of their sources said a transaction could value the combined entity at more than $7.5B, which would include "a meaningful injection" from a private investment in public equity, or PIPE, deal.

Sources familiar with the matter also told CNBC's David Faber that the deal is targeting a valuation of 22 times estimated EBITDA of $320M, with the PIPE investment potentially reaching $2B, sources told CNBC.

ROIVANT, MONTES ARCHIMEDES COMBINATION

Roivant Sciences, a biopharmaceutical and healthcare technology company, and Montes Archimedes Acquisition Corp. (MAAC), a special purpose acquisition company sponsored by Patient Square Capital, announced that they have entered into a definitive business combination agreement. Upon closing of the transaction, outstanding shares and warrants of MAAC will be exchanged for newly issued shares and warrants of Roivant Sciences, which is expected to be listed on Nasdaq under the new ticker symbol "ROIV." The transaction is expected to deliver up to $611M of gross proceeds to fund discovery and development programs. This includes up to $411M currently held in MAAC's trust account, as well as a concurrent $200M common stock private investment in public equity, or "PIPE," priced at $10.00 per share. Proceeds are expected to extend the company's operating runway through mid-2024. Completion of the transaction, which is expected in the third quarter of 2021, is subject to approval of MAAC shareholders and the satisfaction or waiver of certain other customary closing conditions.

EDGE SYSTEMS, VESPER HEALTHCARE MERGER

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