DNAA Stock Races 200% Higher as Akili SPAC Merger Closes

  • Shares in Social Capital Suvretta Holdings (DNAA) shot up over the weekend as it completed its merger with Akili Interactive. 
  • Akili is using video game technology to treat ADHD.
  • DNAA begins trading as AKLI when the market opens on Aug. 22.
DNAA stock - DNAA Stock Races 200% Higher as Akili SPAC Merger Closes

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Shares in Social Capital Suvretta Holdings (NASDAQ:DNAA) rose sharply on news it completed its merger with Akili Interactive, which hopes to treat brain conditions using video games.

After the market opens on August 22, the company will trade as AKLI.

Shares jumped 48% on August 19, when the completion of the merger was announced. They rose nearly 200% in weekend trading. They were due to open at about $42 each.

What Is Akili? 

Akili is focused on using video games to treat ADHD. It signed an agreement in May to integrate its EndeavorRX game into Roblox (NASDAQ:RBLX).

The game is designed to increase sustained attention in kids aged 8-12. This is also part of the target market for Roblox, which has built an interactive “metaverse” with its online games, many designed by children.

Some reporters have been skeptical about Roblox and its latest quarterly earnings statement seemed to justify the skepticism. But if Endeavor can gain traction with parents who are leery of ADHD medicines like Adderall, and already use Roblox, it could be a winner.

In addition to its ADHD work, Akili is also conducting research on the use of video games against COVID Brain Fog, a cognitive impairment associated with “long COVID.”

The action in DNAA also represents a win for Chamath Palihapitiya, who sponsored the deal. Palihapitiya was an early advocate of Special Purpose Acquisition Companies (SPACs) and became known as the “King of SPACs” during the 2021 bull market. His reputation suffered with the 2022 bear market in tech stocks, especially SPACs designed to take companies public without the costs of investment banking. A SPAC goes public as a shell, then takes an active company public through a merger.

DNAA Stock: What Happens Now? 

The success of DNAA stock, or soon AKLI stock, may be a triumph of hope over experience, especially since it comes as the underlying market prepares for a rocky opening.

Still, any success for Akili would be a godsend for parents, and if Akili can prove its concept works, it could prove profitable.

On the date of publication, Dana Blankenhorn held no positions in any company mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, available at the Amazon Kindle store. Tweet him at @danablankenhorn, connect with him on Mastodon or subscribe to his Substack.

Article printed from InvestorPlace Media, https://investorplace.com/2022/08/dnaa-stock-races-200-higher-as-akili-spac-merger-closes/.

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