Jaws Acquisition (NYSE:JWS), a special purpose acquisition company (SPAC), is undergoing a merger with Cano Health.
Here’s what investors in JWS stock need to know about the merger news.
- The merger will have Jaws changing its name to Cano Health.
- It will also see JWS stock switch to a new CANO sticker but it will continue to trade on the New York Stock Exchange.
- The management of Cano Health will continue to lead the new company once the merger is complete.
- Barry Sternlicht, the co-founder and chairman of Jaws, will join Cano Health’s Board of Directors.
- The SPAC with Jaws will value the new company at $4.4 billion.
- It will also provide it with up to $1.49 billion in cash funds to make use of.
- That includes $800 million in funds coming from a private investment in public equity (PIPE).
- Sternlicht is leading the PIPE with a $50 million investment.
- Several other companies, Fidelity Management & Research, as well as funds managed by BlackRock (NYSE:BLK), Third Point, and Maverick Capital are also taking part in the PIPE.
- The merger will see Cano Health shareholders own 65% of the company.
- Holders of JWS stock will own a 15% stake, PIPE investors will own a 17% stake, and the remaining 4% will belong to Jaws’ sponsor.
- The Jaws SPAC merger still needs to complete customary closing conditions before it’s final.
- So long as there are no issues, the two companies expect the merger to close at the end of Q1 2021 or at the start of Q2 2021.
JWS stock was up 4.4% as of Thursday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.