23andMe Is Going Public Via a SPAC. Here's What You Need to Know
Would you want to know if you were at high risk of developing a rare disease? What about knowing whether you're hereditarily predisposed to enjoying chocolate? With the power of DNA sequencing technology, all it takes is spitting in a tube to answer these (not at all) equally important questions. You can't just spit into any old tube, of course -- you'll need to use a sample collection vial from a genetic testing company like 23andMe.
As part of its plan to expand its growth potential and become a leader in genomic data-driven drug discovery, 23andMe announced this week that it will go public by merging with VG Acquisition Corporation (NYSE: VGAC.U) sometime in the second quarter. As the name implies, VG Acquisition is a special purpose acquisition corporation (SPAC), meaning that it is a publicly traded shell company formed explicitly for the purpose of merging with a promising private business. Merging with a SPAC is an alternative to an initial public offering (IPO), which typically requires more regulatory paperwork. This merger will be a huge move for 23andMe. Is it also a signal that it's destined for greatness in the quickly changing healthcare sector?
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Source Fool.com
