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