What Investors Should Know About Ginkgo Bioworks SPAC Deal: 'Cell Programming Has The Potential To Impact Every Physical Goods Industry'

A well seasoned SPAC management team announced a SPAC deal Tuesday to bring a cell programming company public.

The SPAC Deal: Ginkgo Bioworks is going public in a SPAC deal with Soaring Eagle Acquisition Corp SRNG that values the company at a pre money equity value of $15 billion.

Soaring Eagle Acquisition Corp is a SPAC from Harry Sloan and Jeff Sagansky, a seasoned SPAC team that previously brought DraftKings Inc DKNG and Skillz SKLZ public.

The SPAC merger includes an oversubscribed PIPE of $775 million from key investors that included Baillie Gifford, Bain Capital, T. Rowe Price, Ark Investment Management and Cascade Investment, led by Bill Gates.

Current Soaring Eagle Acquisition shareholders will own 10% of the company post merger.

About Ginkgo Bioworks: Building a leading horizontal platform for synthetic biology, Ginkgo Bioworks is a leader in the cell programming market.

Using engineered biology, Ginkgo Bioworks can help with items like mRNA vaccines, animal free protein and renewable plastics.

The company said it can program cells like we program computers, according to the presentation, and make biology easier to engineer. By being the partner that programs cells, it allows other companies to work on their new products while Ginkgo works behind the scenes.

Segments for Ginkgo Bioworks include pharma and biotech, industrials and environment, food and agriculture and consumer and technology.

Current partners for Ginkgo include Moderna Inc MRNA, Roche, Cargill, Bayer, Thermo Fisher Scientific TMO, Berkeley Lights BLI and Pacific Biosciences PACB.

Related Link: Ginkgo Bioworks Which Prints DNA And Creates Genetically Modified Food Exploring SPAC Deal: Report 

Growth Ahead For Gingko: Ginkgo Bioworks believes the bioengineered products market segment can be worth $2 trillion to $4 trillion in the next 10 to 20 years.

Ginkgo has over 70 customer partners working on programs with the company. Ginkgo has introduced new business segments to continue its growth in different areas where it can help.

“Much like computer programming impacted every information-based industry, cell programming has the potential to impact every physical goods industry (therapeutics, food, agriculture, chemicals and electronics),” the company said.

The company’s foundry is scaling at a rate of three times per year. With the company’s growth comes a decline in unit costs.

Gingko's Financials: Ginkgo reported revenue of $77 million in fiscal 2020.

The company sees revenue growing to $150 million in fiscal 2021. Current projections guide for revenue to hit $175 million, $341 million, $628 milllion and $1.1 billion in fiscal years 2022 to 2025, respectively.

Gingko anticipates positive adjusted EBITDA in fiscal 2025.

SRNG Price Action: Shares of Soaring Eagle Acquisition Corp. were down 0.75% at $9.86 at last check. 

Disclosure: Author is long shares of SRNGU.