The Daily Dish (3/29/21)
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Cathie Wood’s ARK Invest launches a space exploration ETF, to begin trading Tuesday
Ark Invest, Cathie Wood’s firm with multiple actively managed exchanged-traded funds, will debut its latest fund on Tuesday: a space exploration ETF. $ARKX, the firm’s eighth ETF, comes as an increasing number of private space companies prepare to go public later this year. The Space related SPACs that’ wood has added in the initial holdings include: Joby $RTP, Archer $ACIC, and Virgin Galactic $SPCE.
Wood – CIO and CEO of Ark Investment Management – has made a name for herself by investing in “Disruptive innovation” stocks. Ark Invest, Cathie Wood’s firm with multiple actively managed exchanged-traded funds, will debut its latest fund on Tuesday: a space exploration ETF. ARKX, the firm’s eighth ETF, comes as an increasing number of private space companies prepare to go public later this year.
Wood – chief investment officer and CEO of Ark Investment Management – has made a name for herself by investing in “Disruptive innovation” stocks. Wood’s flagship fund, Ark Innovation, has seen more than $16 billion in inflows in the past year, according to FactSet. Wood has garnered a large following after Ark Innovation returned nearly 150% last year.
Her flagship fund, Ark Innovation, is down nearly 9% this year.
SomaLogic, the proteomics biotech, to combine with SPAC at $1.2B valuation
The burgeoning field of proteomics has courted heavy investment over the last few years, and on Monday a prominent proteomics biotech scored a new heaping of capital.
SomaLogic announced plans to reverse-merge with Eli Casdin and Keith Meister’s second SPAC on Monday, dubbed CM Life Sciences II $CMII, fetching the company a $1.23 billion valuation.
Once the merger closes sometime in the third quarter, the combined company will trade on the ticker $SLGC. Casdin and Meister had teamed up last summer for their first blank check company, raising what was then a massive $385 million before the SPAC floodgates opened this year.
“We had been talking about making a decision prior to this, and the SPAC has some advantages depending on your perspective as a company.”
The SEC is looking into Wall Street’s SPAC craze
The US Securities and Exchange Commission has begun an inquiry into Wall Street’s blank-check company craze by seeking voluntary information, Reuters reported on Thursday.
The regulator recently sent correspondence to Wall Street banks, requesting details on how underwriter banks manage the risks involved with special-purpose acquisition companies, Reuters said, citing four sources.
More than $95 billion has been raised across 294 SPAC IPOs so far in 2021, according to SPACInsider.com.
Its concerns seem to be centered around due diligence and the heightened possibility of insider trading when a SPAC goes public and announces an acquisition target, according to the report.
The Commission outlined two key differences investors should be wary of between SPACs and IPOs.
Firstly, SPAC sponsors end up acquiring equity in the firm at “More favorable terms” than investors in a typical IPO. Secondly, the sponsors may have conflicts of interest when it comes to the SPAC’s success, meaning early investors could have different economic interests from common shareholders.
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