Business

Prenetic of Hong Kong biotech start-up to list in the United States through the SPAC deal

Hong Kong-based biotech company Prenetics has announced through a merger with Artisan Acquisition – a special-purpose acquisition company, or SPAC – in an agreement that will value the combined entity at $ 1.7 billion.

Roy Liu | Bloomberg | Getty Images

Hong Kong-based biotech company Prenetics has announced through a merger with Artisan Acquisition – a special-purpose acquisition company, or SPAC – in an agreement that will value the combined entity at $ 1.7 billion, they announced. companies Thursday.

Confirming CNBC’s first report, the two companies said the transaction is expected to close in the fourth quarter.

This will make Prenetics the first Hong Kong unicorn, or billion-dollar start-up, to become a public trading company.

The combined company will be traded on the Nasdaq under a new PRE ticker symbol at the end.

The merger is expected to provide up to $ 459 million in cash revenues, which will go toward strategic acquisitions, geographic expansion and research and development.

A laboratory technician wearing a protective suit processes the Covid-19 RT-PCR tests in the laboratory of Prenetics Ltd. in Hong Kong on Friday, July 31, 2020.

Roy Liu | Bloomberg | Getty Images

The Craft Acquisition is supported by Adrian Cheng, CEO and Executive Vice President of New World Development listed in Hong Kong. Prenetics seeks to reach Cheng’s business portfolio covering retail, hospitality, healthcare and property.

Hong Kong-based prenetics is a genetic diagnosis and testing company operating in 10 countries. To date, the company has conducted more than 5 million Covid-19 tests for customers including the Hong Kong government and London Heathrow Airport.

It has names such as Chinese internet company Alibaba, and insurers Ping An and Prudential as strategic investors.

The company has grown significantly since its founding in 2014. It expects revenues from 2021 to jump three times a year to over $ 205 million and will reach $ 600 million in debt by 2025.


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