FOXO Stock: What to Know as Foxo Technologies Completes Its SPAC Debut

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  • Foxo Technologies (FOXO) made its public market debut following a SPAC merger.
  • The company specializes in longevity science to help underwrite life insurance policies.
  • FOXO stock popped higher before the debut under its new ticker before suffering steep losses.
FOXO stock - FOXO Stock: What to Know as Foxo Technologies Completes Its SPAC Debut

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Launching its initial public offering (IPO) via a reverse merger with a special purpose acquisition company (SPAC), Foxo Technologies (NYSE:FOXO) got off to a rough start. While the security under the SPAC brand — Delwinds Insurance Acquisition Corp — jumped 7.6% on Sept. 15, on debut day under the ticker FOXO stock, it tanked about 47% in early afternoon trading, according to StockCharts.com.

Billed as a technology platform company, Foxo Technologies aids the life insurance industry through epigenetic longevity science. Specifically, Bloomberg reported in February of this year that Foxo leverages artificial intelligence (AI) and innovations in genetics to help underwrite life insurance policies.

“The company’s products use saliva tests to detect markers in the body that can provide clues about life expectancy. Foxo says its tests are an easier, less-invasive alternative to those based on blood or urine samples,” the publication reported.

In a statement today, Jon Sabes, founder and chief executive of Foxo, said:

“The completion of this merger is a significant step forward in our mission to make healthy longevity fundamental to the promise of every life insurance policy sold. Our entry into the public markets strengthens our ability to commercialize our molecular biomarkers of health, aging and mortality with epigenetic technology.”

In February, Bloomberg further noted that the transaction aimed to “raise as much as $224 million, including the $201 million from Delwinds’ IPO.”

Controversies Surround FOXO Stock

Although the underlying scientific rigor of FOXO stock appears compelling, the narrative presents myriad controversies. At a time when Americans expressed significant concerns about privacy issues, the leveraging of life expectancy data to help underwrite insurance policies may not sit well with the public.

According to Scientific American, the health insurance industry “joined forces with data brokers to vacuum up personal details about hundreds of millions of Americans.” The publication adds that health insurers seek data on “race, education level, TV habits, marital status, net worth,” among others.

To be clear, NPR reports that “federal Genetic Information Nondiscrimination Act does prohibit insurers from asking for or using your genetic information to make decisions about whether to sell you health insurance or how much to charge you.” However, those “privacy protections don’t apply to long-term-care policies, life insurance or disability insurance.”

While that seemingly gives a break for FOXO stock, the focal point still narrows down on privacy concerns. With shares down 56% from the IPO price of $10, Foxo has an uphill battle ahead.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2022/09/foxo-stock-what-to-know-as-foxo-technologies-completes-spac-debut/.

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