Butterfly Network SPAC Merger: 14 Things to Know About BFLY Stock

Butterfly Network is going public through a merger with special purpose acquisition company (SPAC) Longview Acquisition (NYSE:LGVW).

Image of two men shaking hands over a table.
Source: Natee Meepian / Shutterstock.com

Here’s what investors need to know about the Butterfly Network SPAC merger.

  • The deal will have Butterfly Network becoming a wholly-owned subsidiary of Longview before the company changes its name to Butterfly Network.
  • This will also result in LGVW stock changing from its current ticker to the new BFLY ticker.
  • The merger will give shareholders in Butterfly Network the right to receive shares of BFLY stock on a one-for-1.0383 basis per share.
  • It’s worth noting that SPAC merger values Butterfly Network at $1.5 billion
  • Once the merger is complete, Butterfly Network will have up to $589 million in gross proceeds.
  • That includes $414 million in cash currently held by Longview.
  • The remaining $175 million comes from a private investment in public equity (PIPE).
  • This PIPE is set at $10 per share and is led by Eldridge, Fidelity Management & Research Company LLC, Glenview, Ridgeback, Tenet Healthcare Corporation, and UPMC Enterprises.
  • All in all, this should set the company up with $584 million in cash after the deal closes.
  • Once the deal is complete, current Butterfly Network shares holders will own 63.5% of the new stock.
  • Convertible noteholders will own a 2.5% stake, Longview investors will have a 20%, Longview sponsors will hold a 5% stake and PIPE investors will have a 9% stake in the company.
  • Butterfly Network is a company that focuses on the creation of ultrasound technology.
  • Its goal is to reduce the cost of ultrasounds and make them more readily available at cheaper prices.
  • Butterfly Network expects the SPAC merger to close in Q1 2021.

LGVW stock was up 20.6% as of noon Friday.

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


Article printed from InvestorPlace Media, https://investorplace.com/2020/11/butterfly-network-spac-merger-details/.

©2020 InvestorPlace Media, LLC