CM Life Sciences II stock rallies for fourth day following SPAC deal for SomaLogic (update)

Apr. 01, 2021 2:03 PM ETSomaLogic, Inc. (SLGC), ARKG, NVS, SFTBYNVS, SFTBY, ARKG, SLGCBy: Jerry Kronenberg, SA News Editor
  • Special purpose acquisition company CM Life Sciences II Inc. (NASDAQ:CMIIU) rallied for the fourth straight session Thursday, gaining as much as 15.4% intraday as Wall Street continued to endorse its plan to buy SomaLogic (SLGC) at a $1.2B valuation.
  • CMIIU rose to as high as $14.77 during the session, although it later dropped back some to close at $14.12, up 10.3% on the day.
  • All told, the stock is up 21.3% from where it closed prior to announcing the SomaLogic deal on Monday.
  • SomaLogic is a technology platform that uses artificial intelligence in "proteomics," the study of proteins in the human body. For example, the company’s SomaScan test can analyze more than 7,000 different proteins in blood samples.
  • Monday’s deal calls for CMIIU to acquire the firm for some $651M in cash from a combination of the SPAC’s funds and a $375M private placement in public equity (PIPE).
  • Those participating in the private placement include Cathie Wood’s ARK Investment Management (BATS:ARKG), Casdin Capital, Corvex Management and Janus Henderson Investors.
  • Others involved in the PIPE include Novartis Pharma (NYSE:NVS) and a SoftBank Group (OTCPK:SFTBY) unit, as well as funds and accounts advised by T. Rowe Price.
  • Plans call for SomaLogic to take over CMIIU's Nasdaq listing and trade under the symbol "SLGC."
  • Seeking Alpha contributor Gunner Laine Hardy recently did a deep dive into the deal and concluded that SomaLogic is "a great company, but not for CM Life Sciences SPAC shareholders with a one- to three-year investment time frame."

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