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23andMe to merge with VG Acquisition Corp. to become publicly-traded company

mediacenter.23andme.com

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Re: 23andMe to merge with VG Acquisition Corp. to become publicly-traded company

#121

Post by ericmay »

bhickey wrote: post #97
ericmay wrote: post #40

Earlier quoted context omitted.

I wouldn't consider it a hole in the rules, it's more of an alternative listing method. In my view, nothing materially changes. If 23andMe is a turd then an IPO through Goldman or JPMorgan isn't going to really change that, and neither will an SPAC. Although it's a little bit "gambling" because you don't know what the SPAC acquisition will be ahead of time, I think the SPAC vehicle is great for retail investors. If y…

My understanding was that SPAC shares came with a warrant that could be exercised for shares in the acquisition target, rather than transmuted directly into shares. After the management fee, market premium and exercise cost are you really coming out ahead? Am I misunderstanding the mechanics?

Depends on the SPAC and the target company.

Re: 23andMe to merge with VG Acquisition Corp. to become publicly-traded company

#122

Post by freeone3000 »

ericmay wrote: post #82
ethanbond wrote: post #73

Earlier quoted context omitted.

What? At least as described above, the material requirements for disclosures changes. Is the description above wrong or do you not find disclosures to public market investors to be material?

I don't think they're material. The IPO prospectus for companies is a sales pitch with a bunch of legal "we may never make money" comments. If you commit fraud you'll wind up in court, disclosures or otherwise. Oh and nobody reads any of these documents, let alone any quarterly numbers. I think SPACs are certainly a more risky way to put your money to work, but they're fine. Companies that don't make money, have neve…

I disagree in the importance of an S-1 disclosure. Detailing the actual business plan of the company, as to what people think the plan is, was invaluable for WeWork. Uber's quarterly earnings are a continual source of entertainment. I personally wouldn't put any money into a public company before an actual SEC-required statement, and an SPAC bypasses the first.

Re: 23andMe to merge with VG Acquisition Corp. to become publicly-traded company

#124

Post by mdemare »

throw_away wrote: post #72
breck wrote: post #50

Earlier quoted context omitted.

Dan got me invested in some kind of fruit company. So then I got a call from him, saying we don't have to worry about money no more.

Likewise, the film Forrest Gump should not be considered sound investment advice

Forrest Gump is from 1995. Apple had barely begun going up then.

Re: 23andMe to merge with VG Acquisition Corp. to become publicly-traded company

#126

Post by elwell »

runako wrote: post #46
breck wrote: post #45

Earlier quoted context omitted.

Thanks for the tip! Just bought some. Does this mean I own some 23andme now? I'm a bit ignorant of how SPACs work.

You shouldn't take investment advice from strangers on the Internet, but you also should know what you're buying before you buy it.

> You shouldn't take investment advice from strangers on the Internet, but you also should know what you're buying before you buy it.

and* you also...

Re: 23andMe to merge with VG Acquisition Corp. to become publicly-traded company

#128

Post by r00fus »

lordnacho wrote: post #26
detaro wrote: post #21

Earlier quoted context omitted.

In addition to speed and guaranteed price a SPAC merger also has less reporting requirements, because the SPAC already did go trough the IPO paperwork when it was created. And didn't have to explain weird things about the business to investors because it had no history or things to be going on. It then can relatively easily buy 23andMe, and 23andMe doesn't have to explain its business risks etc to the public as much…

Am I the only one who thinks that's a massive hole in the rules? You IPO an empty shell, which passes easily because it does nothing, and then any old shop with a messy business can then be bought by it?

No you're not. It's entirely a loophole being regularly exploited.

Now whether the existing IPO requirements could/should be streamlined is another question.

Re: 23andMe to merge with VG Acquisition Corp. to become publicly-traded company

#129

Post by elwell »

offtop5 wrote: post #93
sjg007 wrote: post #75

I work in this space and even I have a hard time seeing 23andMe being profitable.

Monetization of user data. Integration with the Match.com API, 'Sure you want to go out with her, you share 12.5% of your DNA'. Open access to various government agencies, ' You share 47% DNA with this GUY who owes taxes , WHERE IS HE'.

With technological progress, the path towards reaping the benefits and mitigating the risks is difficult.

Re: 23andMe to merge with VG Acquisition Corp. to become publicly-traded company

#130

Post by riffic »

Eric_WVGG wrote: post #105
cphoover wrote: post #9

This company is just one big ethical dilemma packaged Silicon Valley style to look hip.

The worst thing is that, you can’t even really opt out. My parents tried to gift me a kit for xmas one year, "hey we think this is fun, might be useful to know if you're prone to eyeball cancer or whatever." I explained all the privacy issues and politely declined. But of course they and my sister had already gone ahead and done it, so now my family’s genetic fingerprints are in their databases, nothing to be done ab…

sounds like you need to open a dialog with your congress-critters with your concerns then.

these companies are going to do whatever they want in the meantime.

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