SPAC News: 13 Things to Know About the Clover Health Deal

Clover Health news for Tuesday includes plans to go public via a merger with special purpose acquisition company (SPAC) Social Capital Hedosophia Holdings (NYSE:IPOC).

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Here’s what to know about the Clover Health SPAC news.

  • The deal will use a mix of stock and cash and values Clover Health at $3.7 billion.
  • It will result in Clover Health receiving up to $1.2 billion of gross proceeds to operates its business with.
  • It’s worth noting that $828 million of this comes from IPOC initial public offering (IPO) earlier this year.
  • The deal also has the support of a $400 million private investment in public equity (PIPE).
  • This prices shares of the stock at $10 each with $100 million of that coming from Social Capital founder Chamath Palihapitiya.
  • Another $50 million comes from Social Capital with the rest coming from other investors.
  • The Clover Health news release notes it’s set to receive $728 million of transaction proceeds from the SPAC deal.
  • The current deal also has shareholders in the company receiving up to $500 million of the proceeds in cash.
  • It also has current executives in Clover Health transferring their equity over to the new company.
  • Clover Health notes that the deal with Social Capital has the full support of its independent Board Directors.
  • Social Capital’s Board of Directors are also giving their full support to the deal with Clover Health.
  • The current leadership team of Clover Health will continue to lead the company once the merger is complete.
  • So long as no trouble comes from regulators, the deal is set to close during the first quarter of 2021.

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.

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