Palihapitiya-Led SPACs Social Capital Suvretta I & III In Talks For Reverse Mergers

Two of the blank-check firms led by prolific SPAC backer Chamath Palihapitiya are gearing for a business combination.

Social Capital Suvretta Holdings Corp I (Nasdaq: DNAA) is said to be eyeing a merger with biotech startup Akili Interactive, while Social Capital Suvretta Holdings Corp III (Nasdaq: DNAC) is reportedly in the discussion phase to take biotech firm ProKidney public.

The rumored transaction with ProKidney, which could potentially value the combination at roughly US$1 billion, could be announced next week. The merger with Akili Interactive, on the other hand, is expected to have a valuation of approximately US$800 million.

ProKidney is a biotech firm aiming to develop therapies for treating chronic kidney disease. The firm is currently conducting clinical trials for its cell-based product called REACT or Renal Autologous Cell Therapy.

Meanwhile, Akili Interactive is working on cognitive impairment treatments. Its FDA-approved treatment EndeavorRx for children with ADHD is delivered through a video game.

Social Capital Suvretta I & III are two of the four “Suvretta” SPACs led by Palihapitiya, all of which had their initial public offerings in June 2021 raising combined proceeds of approximately US$880 million.

Palihapitiya also led six Social Capital Hedosophia SPACs, with Social Capital Hedosophia consummating a merger with Virgin Galactic, Social Capital Hedosophia II with Opendoor Labs, and Social Capital Hedosophia III with Clover Health Investments.

Social Capital SuvrettaI last traded at US$9.92 while Social Capital Suvretta III last traded at US$9.85 on the Nasdaq.

Information for this briefing was found via Bloomberg. 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.

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