CMLF Stock: 13 Things to Know About CM Life Sciences and the Sema4 SPAC Merger

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CM Life Sciences (NASDAQ:CMLF) stock is soaring higher on Wednesday after announcing plans to take Sema4 public via a special purpose acquisition company (SPAC) merger.

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Here’s everything investors need to know about the companies and the upcoming SPAC merger.

  • CM Life Sciences is a company created by affiliates of Casdin Capital, LLC and Corvex Management LP.
  • The company’s’ goal is to bring together other companies in the life science sector, which it says suffers from fragmentation.
  • Sema4 is a clinical data company that uses artificial intelligence (AI) to help bring patients’ data together.
  • Its focus is on ‘transforming healthcare by building dynamic models of human health and defining optimal, individualized health trajectories.”
  • The SPAC merger deal will also result in a change to the company’s name, as well as for CMLF stock.
  • However, a final name and ticker for the combined company haven’t been announced yet.
  • The SPAC merger sets an enterprise value of $2 billion.
  • It also includes gross proceeds of $793 million for Sema4 after the deal closes.
  • That comes from $443 million in cash held by CM Life Sciences from its initial public offering (IPO) in September 2020.
  • The other $350 million is being provided by private investment in public equity (PIPE).
  • The SPAC merger will see holders of Sema4 stock receive shares of CMLF stock and up to $343 million for their shares.
  • Sema4 expects to have $500 million in cash available after the deal to fund operations.
  • The deal is set to close in the second quarter of 2021.

CMLF stock was up 38.5% as of Wednesday morning.

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/2021/02/cmlf-stock-13-things-to-know-about-cm-life-sciences-and-the-sema4-spac-merger/.

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