Skip to main content

23andMes merger with Branson aid almost done

Written by Customer Service on . Posted in Public Companies.

The enterprise value was $3.5 billion as stated on the agreement, with Branson and Chief Executive Officer Anne Wojcicki both investing $25 million each into a public equity offering of $250 million worth of private investment.

Other investors include Casdin Capital, Foresite Capital, Fidelity Management & Research Company LLC and Altimeter Capital. The current shareholders of 23andMe need not to worry as they will own 81% of the combined company, and it is expected that the deal will be done soon around 2nd or 3rd quarter of 2021.

The merger decision of 23andMe with a special purpose acquisition company, or SPAC, gives them the benefit of going public without holding an initial public offering or uncertainty.

The input of new capital gives the company to further expand its efforts in developing therapeutics using its database of genetic information, along with a possible expansion of the company’s reach on the consumer front.

SPACs are currently a popular way for companies to go public especially in the past year. The expected pro forma cash balance of the combined company will be around $900 million and once the deal is closed, VGAC will be switching its ticket to ME to start trading on the New York Stock Exchange.

The main product of 23andMe is a genetic testing kit, and unlike other testing kits, they provide a direct-to-consumer genetic testing kits which contains all instructions on how to use the kit and how to send the results back to the company to complete the tests. The company was co-founded by Wojcicki in 2006 with the original goal of using genetics to identify potential health risks using a $1000 test kit.

Though they encountered regulatory issues back then that forced the product to be pulled out in the market, they switched their attack to ancestry testing which was latter approved by the Food and Drug Administration.

23andMe had a fair share of their ups and downs, but continued to prove that DNA testing can offer more what the consumers are getting before. They expended no effort to turn genetic data into therapies and develop drugs, but since drug development is expensive, the merger was set in place.

Catch more of the latest news in US Stock Market and Crypto Currency you may also visit us at Advisory Access Limited through our website or contact us via email.
For more information, visit: https://advisoryaccessltd.com/

Disclaimer & Cookie Notice

Welcome to GOLDEA services for Professionals

Before you continue, please confirm the following:

Professional advisers only

I am a professional adviser and would like to visit the GOLDEA CAPITAL for Professionals website.

Important Notice for Investors:

The services and products offered by Goldalea Capital Ltd. are intended exclusively for professional market participants as defined by applicable laws and regulations. This typically includes institutional investors, qualified investors, and high-net-worth individuals who have sufficient knowledge, experience, resources, and independence to assess the risks of trading on their own.

No Investment Advice:

The information, analyses, and market data provided are for general information purposes only and do not constitute individual investment advice. They should not be construed as a basis for investment decisions and do not take into account the specific investment objectives, financial situation, or individual needs of any recipient.

High Risks:

Trading in financial instruments is associated with significant risks and may result in the complete loss of the invested capital. Goldalea Capital Ltd. accepts no liability for losses incurred as a result of the use of the information provided or the execution of transactions.

Sole Responsibility:

The decision to invest or not to invest is solely the responsibility of the investor. Investors should obtain comprehensive information about the risks involved before making any investment decision and, if necessary, seek independent advice.

No Guarantees:

Goldalea Capital Ltd. makes no warranties or representations as to the accuracy, completeness, or timeliness of the information provided. Markets are subject to constant change, and past performance is not a reliable indicator of future results.

Regional Restrictions:

The services offered by Goldalea Capital Ltd. may not be available to all persons or in all countries. It is the responsibility of the investor to ensure that they are authorized to use the services offered.

Please note: This disclaimer is for general information purposes only and does not replace individual legal or tax advice.