VGAC Stock: 15 Things to Know About 23andMe and the Virgin Group SPAC Merger

23andMe has revealed plans to go public via a special purpose acquisition company (SPAC) merger with VG Acquisition (NYSE:VGAC) and shares of VGAC stock are soaring on Thursday.

a visualization of DNA in a vial.
Source: Connect world / Shutterstock.com

Here’s everything investors need to know ahead of 23andMe’s SPAC merger with Virgin Group.

  • 23andMe is a consumer genetics and research company founded in 2006.
  • It offers genetic testing to customers and uses that information to provide them with details about their health and wellness.
  • The company also makes use of this information when developing treatments for genetic diseases.
  • VG Acquisition is a blank check company created by Virgin Group with the goal of taking another company public.
  • The 23andMe SPAC merger with VG Acquisition will have the combined company trading on the New York Stock Exchange.
  • This will have shares of VGAC stock switching to the ME stock ticker once the deal closes.
  • The SPAC merger also values 23andMe at $3.5 billion.
  • It will provide the company with $759 million of gross proceeds.
  • That includes $509 million in cash held by VG Acquisition and $250 million from a private investment in public equity (PIPE).
  • Virgin Group founder and CEO Sir Richard Branson and 23andMe co-founder and CEO Anne Wojcicki are both planning to contribute $25 million to the PIPE.
  • In total, 23andMe should come out of this SPAC merger with $984 million in cash to fund its operations.
  • 23andMe’s current shareholders will continue to be the majority after the merger with an 81% stake in the company.
  • The SPAC merger already has unanimous support from both companies’ Boards of Directors.
  • It now needs approval from shareholders of VGAC stock and regulators.
  • The current estimate is for the deal to close during the second quarter of 2021.

VGAC stock was up 15.1% 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.


Article printed from InvestorPlace Media, https://investorplace.com/2021/02/vgac-stock-15-things-to-know-about-23andme-and-the-virgin-group-spac-merger/.

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