A SPAC deal announced Thursday will see a company working on a new protein sequencing on a chip go public.
The SPAC Deal: Semiconductor company Quantum-Si is going public in a SPAC merger with HighCape Capital Acquisition Corp CAPA.
The deal values Quantum-Si at $925 million. An oversubscribed PIPE of $425 million included investment from accounts advised by Ark Invest, the firm led by Cathie Wood. PIPE investors will own 29.1% of the company after the merger.
Shares will trade as "QSI" on the Nasdaq if the merger is approved. Current HighCape Capital Acquisition shareholders will own 7.9% of the new company.
About Quantum-Si: Planning to launch a chip-based proteomics solution, Quantum-Si believes it can change the protein and genomics markets.
Quantum-Si created the first next-gen protein sequencing platform with the goal of revolutionizing the field of proteomics.
The company will start by decoding the molecules of life starting with proteins with the potential to expand the scale to genomics.
The company is led by Dr. Jonathan Rothberg, who is also the founder of Butterfly Network Inc BFLY. Rothberg founded over 10 companies and is an award winner in the technology and medical fields. Butterfly Network, which is backed by Bill Gates, recently completed its SPAC merger.
Related Link: Cathie Wood Adds Longview Acquisition SPAC Ahead Of Deal With Butterfly Network
Growth Ahead: A commercial launch for Quantum-Si is scheduled for 2022 beginning with research use.
The company is targeting a $21 billion market. Applications for the chips from Quantum-Si could include diagnostic applications and drug discovery.
Quantum-Si uses protein to show what is happening instead of DNA which shows what could happen, according to the company’s presentation.
The company believes it has a scalable semiconductor chip that could expand to home testing sometime after the year 2024.
Financials: Quantum-Si is a pre-revenue company with no revenue anticipated until 2022. The company sees revenue of $17 million in fiscal 2022. The fiscal years of 2023, 2024 and 2025 have respective revenue projections of $49 million, $104 million and $186 million.
By 2025, Quantum-Si anticipates it can have over 5,000 devices installed.
Price Action: Shares of HighCape Capital Acquisition are up 51% to $15.70 in early Thursday trading.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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