Palihapitiya-backed SPAC tumbles ahead of ProKidney deal vote

Prokidney

05/07/2022 17:05

** Shares of Social Capital Suvretta Holdings Corp III
 DNAC.O  down 15.8% at $8.27, hits record low of $8.03 on the
session so far, as shareholders slated to vote on merger with
ProKidney LP on Weds, Jul 6
    ** Biotech firm in Jan agreed to go public in $2.6 bln deal
with special purpose acquisition co backed by veteran dealmaker
Chamath Palihapitiya  urn:newsml:reuters.com:*:nL4N2TY2WA
    ** Merger anticipated to bring ProKidney $825 mln, assuming
no redemptions by SPAC shareholders, including $575 mln PIPE
(private investment in public equity)
    ** DNAC raised $250 mln in its IPO a year ago. Its stock hit
record peak of $10.49 on Tues before tumbling
    ** Palihapitiya has been prolific in the SPAC space, having
sponsored some of most high-profiled deals, including SoFi
Technologies Inc  SOFI.O  and home-selling platform Opendoor
Technologies Inc  OPEN.O 
    ** Meanwhile, Israel's online brokerage eToro and Betsy
Cohen-backed SPAC FinTech Acquisition Corp  FTCV.O  on Tues
became the latest cos to nix their planned tie-up  urn:newsml:reuters.com:*:nL4N2YM2AW
    ** Increased regulatory scrutiny, high investor redemptions
and collapsing share prices post-merger have combined to
hamstring the SPAC market this year

 (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))