Author Bio
Zhiyuan Sun is a statistician with a knack for analyzing clinical trials and company financials. Investing in healthcare and cannabis is his passion, as well as looking out for new, actionable stock investment ideas in these sectors. Fool since April 2020. Lives in Québec City, Canada. Follow @Bio Chameleon
Biotech stocks are popular with investors because of their drugs life-saving benefits and strong intellectual property moats. Current patent laws allow drug developers market exclusivity for two decades from the date of filing. This gives them a virtual market monopoly on their products. A portion of their sales is then reinvested into research and development, leading to a sustainable and wildly profitable business model.
Two Big SPAC Deals (SRNG, AURC) After Monday s Mess
Monday was a painful day for SPAC investors with 75% of pre-deal SPACs dropping farther and 3 deals actually dropping on the news. Will today s deals from SRNG and AURC turn the tide?
Author:
At the close yesterday the average pre-deal SPAC was at $9.87 even further from NAV than investors have seen in a long time. Even worse, the three morning deals all closed lower:
-
-
LIV Capital (LIVK) -0.1% to $9.99
Today s two deal announcements are mega deals and could potentially turn the tide, but given the market s overall state and SPACs still being clogged, it will take a lot.
SPACs Hit Hard on Merger Monday
Four deals were announced, but performance was underwhelming. Given the overall market s bad day, it s no surprise 75% of pre-deal SPACs declined and now average $9.87.
Author:
Merger Monday returned with four new announced SPAC deals, but ultimately ended in a bit of a thud as all three SPAC stocks that announced this morning fell on the day. More broadly, 75% of Pre-Deal SPACs declined, closing at an
average of $9.87.
-
-
LIV Capital (LIVK) -0.1% to $9.99
The deal selloffs came amid a broader market decline as well - so it s tough to attribute the lack of performance solely on deal conviction - yet most of newly announced deals have not been trading with much enthusiasm. However, as we ve been saying, given there are
Dive Brief:
Ginkgo Bioworks, a specialist in engineering cells for biotechnology, industrial and agricultural uses, will go public by merging with a special purpose acquisition company, or SPAC, in a deal that values the company at a lofty $15 billion.
The merger with Soaring Eagle Acquisition Corp. will give Ginkgo Bioworks a place on the Nasdaq stock exchange as well as approximately $2.5 billion in proceeds, $775 million of which will come through private investments in public equity by an array of high-profile backers.
Eagle Equity Partners is co-sponsoring the deal with Bellco Capital, an investment firm led by Arie Belldegrun, the founder of cancer cell therapy companies Kite Pharma and Allogene Therapeutics. Both Eagle and Bellco are investing in Ginkgo stock at $10 per share.
Last week featured five announced SPAC deals and several rumors. The week also had earnings from several well-known former SPACs. Here is a look back at the .