SUBSPAC

Today we cover $BOWX, $GSAH, $JSPR, and more…

Two years after a failed IPO and seven months after announcing a SPAC merger, WeWork is finally making its public debut tomorrow, but shareholders haven’t been kind to the stock so far. Also, Radiation Detection company Mirion is making its debut after a successful merger vote and One diagnostics company is set to have a big opening today after it received regulatory approval in India.


BowX Shares Fall 10% After WeWork Merger Approval

  • WeWork will begin trading on NYSE tomorrow under the ticker ‘WE’ after BowX Acquisition Shareholders approved the $9 Billion Merger. 

Shares of SPAC BowX Acquisition Corp closed 9.9% lower yesterday after shareholders approved to close the business combination with WeWork. 97.9% of the votes cast at the meeting (78% of the total shares outstanding) approved the merger. The deal is expected to provide around $1.3 billion in gross cash proceeds, which includes cash from the SPAC trust, a PIPE funding, and an equity backstop family from Cushman & Wakefield.

In addition, WeWork will have access to $550 million in senior debt facilities at an interest rate of 7.5% with StarBright WW LP (Affiliate of SoftBank). WeWork will desperately need the capital as it has reported a loss of $3 billion in the first half of 2021 (included a $500 million non-cash charge to Adam Neumann) and $3.2 billion in FY20. Occupancy rates have been steadily improving and last stood at 53% in June, but remain far lower than pre-pandemic levels of 70-80%. WeWork’s equity value is highly sensitive to long-term occupancy rates, so investors will need to keep an eye to see the company’s long-term viability.


GS Acquisition Holdings II Shareholders Approve Mirion Deal 

  • Shareholders of GSAH approved a deal to merge with Nuclear Services and Radiology firm Mirion in a $2.6 billion deal. 

Shareholders of GS Acquisition Holdings II (a SPAC Backed by Goldman Sachs) just agreed to a SPAC merger with Radiation Detection provider Mirion Technologies. GSAH announced that approximately 26% of the shares were redeemed as part of the deal. The deal will generate $554 million in cash proceeds from the SPAC trust, $900 million from PIPE funding (investors include Fidelity, BlackRock, and Goldman Sachs), and $830 million from a senior secured term loan financing.

A portion of the proceeds will be used to pay $1.3 billion to existing shareholders, $909 million of existing debt and transaction expenses. Mirion will begin trading on the New York Stock Exchange under the ticker ‘MIR’ on October 21st. Mirion focuses on radiation measurement technologies globally, including applications in nuclear power, health care, homeland security, and the military. The company has been expanding rapidly through acquisitions including Sun Nuclear this year, Capintec in 2020, and Nuclear Research & Consultancy Group’s dosimetry unit in 2018. 


Reddit Reads

BMO Capital Initiates Coverage on $JSPR with $19 Price Target

BMO Capital imitated coverage on Jasper Therapeutics with an Outperform rating and a price target of $19.00. BMO analyst had this to say about Jasper ‘We believe lead product JSP191 has shown encouraging early efficacy and clean safety, a potentially significant advantage that could allow JSP191 to become a backbone or replacement for existing toxic regimens. While shares have been volatile, we are positive on Jasper given early data and long-term potential upside via expansion into autoimmune and gene therapy plus the eHSC platform’.

$OCA Reports Triple-Digit Growth in Q3

Kin Insurance, which is merging with Omnichannel Acquisition, reported third-quarter gross written premiums of $26.7 million, a 534% year-over-year increase. Total managed premiums were up 420% year-over-year to $27.8 million.


$LMDX Shares Jump After Approval for Covid Antigen Test Use in India

  • Shares of LumiraDX were up 33% premarket after the company received approval from India’s Central Drug Standard Control Organisation.  

  • The company’s Antigen test produces results in under 12 minutes, making it one of the fastest, and most sensitive antigen point of care tests currently commercially available.


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