Palihapitiya-backed SPAC to take ProKidney public in $2.64 bln deal

Prokidney

18/01/2022 12:58

** Shares of SPAC Social Capital Suvretta Holdings Corp. III
 DNAC.O  edge up 1.13% to $9.95 premarket
    ** Biotech company ProKidney LP agrees to go public through
a merger with the blank-check firm, Social Capital, backed by
veteran dealmaker Chamath Palihapitiya, in a deal that values
the combined company at $2.64 billion  urn:newsml:reuters.com:*:nL4N2TY2WA
    ** Deal to deliver up to $825 million in gross proceeds,
including up to $250 million of cash held in the special purpose
acquisition company's trust account, assuming no redemptions
    ** Proceeds include a private investment in public equity,
or PIPE, of $575 million from Social Capital, Suvretta Capital's
healthcare-focused fund Averill and ProKidney's existing
investors
    ** ProKidney intends to use the proceeds to fund the
late-stage program of its lead product REACT and accelerate its
manufacturing build out
    ** SPACS are publicly listed shell companies that raise
funds with the intention of merging with a private company
within two years of floating its shares; the private company
then goes public through the merger
    ** After the deal closes, the combined company will trade on
the Nasdaq under the symbol "PROK"

 (Reporting by Manya Saini in Bengaluru)
 ((Manya.Saini@thomsonreuters.com;))