The Daily Dish (1/13/21)
Welcome to the Daily Dish. Every morning in your inbox subscribers receive some Dishes that we find interesting and we think that you should know more about.
We’ll try to lob ‘em up to you in a simple, clean format that you can read in 5 minutes before the market opens. (Trust me, we know what it’s like to wake up at 9:23am).
Here’s the first assist 👇
Alex Rodriguez’s post-baseball business empire is scoring its first stock market victory, as telehealth and personal care unicorn Hims & Hers is set to go public by special purpose acquisition company, which is merging with Oaktree Acquisition Corp in a deal that values the enterprise at $1.6 billion. $OAC
Hims & Hers is a direct-to-consumer firm that began as a Viagra-by-mail prescriber but has evolved its primary focus to telemedicine, along with mental health support offerings and the sale of personal care products focused on hair, skin and sexual health. The company disclosed it has about 260,000 medical prescription subscribers as of June and has held more than one million telehealth appointments.
Rodriguez and his girlfriend Jennifer Lopez invested in Hims & Hers in 2019, around the time venture capitalist enthusiasm for the brand vaulted it to unicorn status, market slang for a start-up that reaches a $1 billion private market valuation. The Oaktree SPAC valuation at 60% more than that means the investment is already paying off handsomely for A-Rod and J.Lo. Their stake could be worth as much as $79 million. Investor reaction to Hims & Hers going public has been growing (☞ ͡° ͜ʖ ͡°)☞, with Oaktree Acquisition’s shares gaining more than 60% since the deal was announced on October 1.
Online therapy app Talkspace on Wednesday agreed to go public through a merger with Doug Bernstein-backed blank-check firm Hudson Executive Investment Corp $HEC, in a deal valued at $1.4 billion, including debt. The deal includes $300 million by way of private investment by firms including Federated Hermes Kaufmann Funds, Jennison Associates LLC, Woodline Partners LP and Deerfield.
Decorated Olympian Michael Phelps joined Talkspace’s advisory board and approaches the role with the same zeal he put into his Olympic training. He authentically committed to a cause he was passionate about and leveraged his fame to help others. A year after launching the Talkspace partnership, Phelps published two tweets from his Twitter handle in May 2019, reigniting a global discussion about mental health awareness.
“Did you know that one in four people around the world experience a mental health issue? I was one of them,” he wrote.
“I struggled with anxiety and depression and questioned whether or not I wanted to be alive anymore. It was when I hit this low that I decided to reach out and ask for the help of a licensed therapist. This decision ultimately helped save my life. You don’t have to wait for things.”
The tweets resulted in hundreds of thousands of likes, retweets and replies. Talkspace has seen a rise in clientele and Phelps’ words have helped save lives.
Fortress Capital Acquisition $FCAX, a blank check company formed by Fortress targeting financial services, raised $350 million by offering 35 million units at $10. The company offered 5 million more units than anticipated. Each unit consists of one share of common stock and one-fifth of a warrant, exercisable at $11.50.
Fortress’ other SPACs include Fortress Value Acquisition III ($FVT.U; +9% from $10 offer price), which raised $200 million earlier this month; Fortress Value Acquisition II ($FAII; +12%), which raised $300 million in August 2020; and Fortress Value Acquisition I, which went public in April 2020 and completed its business combination with MP Materials ($MP; +245%) in November. Fortress Capital Acquisition intends to concentrate on businesses in the financial services sector including, but not limited to, services and technology businesses that provide support to the financial services sector.
A potential target could be with fintech startup Plaid, valued at $2.65 billion after its most recent funding round in 2018, would be an ideal target for a SPAC to merge with and take public. Visa and Plaid announced after the closing bell on Tuesday that they are terminating their planned $5.3 billion union after coming to the conclusion that it would require prolonged litigation with DoJ, which sued to block the deal in November on antitrust grounds.
Here’s the last assist 👇
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