Chamath Palihapitiya Spac deal launches amid Uyghur controversy

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Backed by technology investor Chamat Palihapitiya, Spac has agreed to merge with a healthcare company focused on kidney disease.

Palihapitiya has launched 10 blank check cars to take advantage of the fast-growing demand and is a major sponsor of the special purpose acquisition company. The latest deal between his Social Capital Suvretta III Spac and ProKidney, a treatment company focused on the treatment of chronic kidney disease, will bring the value of the merged company to $ 2.64 billion.

Revenue of $ 825 million is expected, including $ 250 million from Palihapitiya’s Spac, which was listed on the Nasdaq Stock Exchange in June 2021.

The transaction has $ 575 million in private investment in public equity (PIPE) finance, of which $ 125 million comes from Palihapitiya’s venture capital firm Social Capital. Palihapitiya said chronic kidney disease will affect deceased fathers and the merger will provide ProKidney with funding to continue Phase 3 trials of cell therapy.

The deal takes place the day after Paris Hapitiya said in a podcast, “No one cares what’s happening to Uighurs” in China. “Every time I say I care about Uighurs, I’m really just lying,” he said.

Faced by many companies and investors New pressure Prior to the Beijing Winter Olympics after the United States and the United Kingdom announced the diplomatic boycott of the event in the light of protests by human rights groups and others against the persecution of Chinese Muslim Uighurs in the Xinjiang Uighur Autonomous Region.U.S. Department of State Criminal accusation China Evaluation of “genocide and crimes against humanity” in the treatment of Uighurs.

Beijing denied allegations of abuse, Encouraged boycott For foreign companies such as H & M, an apparel retailer who opposes the use of forced labor in the region.

Paris Hapitiya, who owns a stake in the Golden State Warriors team of the National Basketball Association, later said that human rights were important. “I realize I’ve come across a lack of empathy,” he said, after the Warriors said Paris Hapitiya did not represent their views.

A Warriors spokesman said in a statement: Our organization. “

Parihapitiya’s comments have garnered opposition from some Republicans who have said they have exposed his hypocrisy and the NBA’s hypocrisy.

Tennessee Republican Senator Marsha Blackburn said his comment was “feeling sick” and “proves that the NBA will be familiar with the Republican China at all costs.”

Utah’s Mitt Romney said, “The arrogant dismissal of the slaughter of Chinese Uighurs and other minorities by a billionaire venture capitalist who founded the ironically named’social capital’fund is repulsive. It’s immoral and disgusting. “

Arkansas Republican Senator Tom Cotton said the NBA “will prove greedy, spineless, and hypocritical if we don’t market Paris Happitia’s interest in the Warriors.” rice field.

According to Spac Research data, Palihapitiya, along with his co-sponsor Kisen Mehta, will earn $ 62.5 million from so-called Spac promotions. Spac sponsors are paid in the form of founder shares called promotes. This typically involves acquiring 20% ​​of Spac’s stock at a nominal price of $ 25,000. Upon completion of the Spac merger, the sponsor’s significantly discounted shares will be converted.

The deal represents the fifth merger of Paris Hapitiya’s Spack with Richard Branson’s space travel company Virgin Galactic and healthcare company Clover Health.

Investor enthusiasm for Spacs has subsided from last year’s fierce highs due to increased regulatory oversight. Investors are withdrawing cash at higher rates and some sponsors are having a hard time finding suitable target companies to publish, so Spac withdrawals have increased in recent months.

Additional Report by Sarah Germano in New York

Chamath Palihapitiya Spac deal launches amid Uyghur controversy Source link Chamath Palihapitiya Spac deal launches amid Uyghur controversy

The post Chamath Palihapitiya Spac deal launches amid Uyghur controversy appeared first on California News Times.

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