It appears that Cronos Group (TSX: CRON) (NASDAQ: CRON) might be losing its star player. Ginkgo Bioworks this morning announced that it will be going public via the SPAC route with that of Soaring Eagle Acquisition Corp (NASDAQ: SRNG).
The arrangement entered into by Ginkgo’s values the company at a $15 billion pre-money valuation, with the go-public event expected to provide the company with $2.5 billion in proceeds. A PIPE has already been committed to to the tune of $775 million by institutional investors in an oversubscribed offering, with names such as Ark Investment Management among those subscribing.
The company also revealed this morning that it expects to generate $150 million in revenue for 2021, which is a 96% improvement from 2020’s figures. The company is focused on programming living cells for customers in any industry, with the company stating it harnesses biology to grow more sustainable and innovative products.
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Once public, the entity will continue to be helmed by co-founder and CEO Jason Kelly, with co-founder Reshma Shetty remaining in the role of President and COO, with the rest of the founding team remaining in place.
The transaction requires the approval of the stockholders of both Soaring Eagle and Ginkgo’s, along with certain regulatory approvals. The transaction is expected to close in the third quarter of 2021.
Soaring Eagle Acquisition Corp last traded at $9.92, down 0.20% on this mornings news.
Information for this briefing was found via Sedar, and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
