Biotech EQRx sinks after lackluster debut

EQRx

21/12/2021 19:31

** EQRx Inc  EQRX.O  shares down 24.7% at $6.05 on Tues, a
day after biotech firm's lackluster debut
    ** SoftBank-backed  9984.T  co's shares fell 6% to $8.17 on
Mon after completing merger with SPAC CM Life Sciences III
    ** The $3.65 deal announced in Aug was to provide EQRx ~$1.8
bln, including $1.2 bln (private investment in public equity)
from Casdin Capital, Corvex Management, Fidelity Management and
Franklin Templeton, among others  urn:newsml:reuters.com:*:nL4N2PD2II
    ** As per filing https://www.sec.gov/ix?doc=/Archives/edgar/data/1843762/000121390021066430/ea152198-8k_cmlifesci3.htm
 late Mon, roughly 70% of the SPAC's shareholders redeemed their
shares before the merger closed
    ** Many firms that have merged with SPACs to list publicly
have experienced high withdrawals recently, sending their shares
slumping  urn:newsml:reuters.com:*:nL4N2T137P
    ** Large shareholder redemptions, along with any potential
stakeholder lock-up provisions, result in a small public float,
which can lead to volatility in a co's shares after a merger
    ** About 570k EQRX shares have traded as of 2:25 PM ET on
Tues
    ** Per Refinitiv data, EQRX has 69 mln shares outstanding
and about 55 mln shares of free float

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-332-219-1430))