Hong Kong Biotech Startup Prenetics to List in US Thanks to PSPC Agreement

Hong Kong Biotech Startup Prenetics to List in US Thanks to PSPC Agreement

The Prenetics Limited logo is displayed in the company’s Hong Kong lab on July 31, 2020.

Roy Liu | Bloomberg | Getty Images

Hong Kong-based biotech company Prenetics goes public through a merger with Artisan Acquisitions – a special purpose acquisition company, or SPAC – in a deal that will value the combined entity at $ 1.7 billion. dollars, the companies said Thursday.

Confirming a previous report from CNBC, the two companies said the deal is expected to close early in the fourth quarter.

That would make Prenetics the first Hong Kong unicorn, or billion dollar startup, to become a publicly traded company.

The combined company will be listed on the Nasdaq under a new ticker symbol PRE upon completion.

The merger is expected to generate $ 459 million in cash proceeds, which will be used for strategic acquisitions, geographic expansion and research and development.

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

Roy Liu | Bloomberg | Getty Images

The acquisition of Artisan is supported by Adrian Cheng, CEO and Executive Vice President of New World Development, a Hong Kong listed company. Prenetics is looking to attract Cheng’s business portfolio which spans retail, hospitality, healthcare and real estate.

Hong Kong-based Prenetics is a diagnostic and genetic testing company with operations in 10 countries. To date, the company has performed 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 insurance companies Ping An and Prudential as strategic investors.

The company has grown significantly since its inception in 2014. It forecasts 2021 revenue to triple year-over-year to $ 205 million and reach $ 600 million by 2025.

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