During all that occurred in DC on January 6th, SC Health Corp (SCPE) announced they had entered into a non-binding letter of intent with a “next generation technology developer.” Either this press release went largely unnoticed while everyone was focused on the chaos at the U.S. Capitol building, or the market is calling BS on this ‘non-binding LOI’. I'm betting on the former. (Note that both GOEV & TTCF, formerly HCAC & FMCI, released vague non-binding LOI’s before announcing deals as well)
The Target has developed a unique technology targeting consumer healthcare applications that delivers market-leading performance and accuracy. The Target is led by a world class management team with significant experience in leading innovative, high-growth companies in the sector. SC Health’s management team believes the Target is a compelling investment opportunity given its cutting-edge technology and commercial opportunity.
AJ Coloma, the Company’s Chief Executive Officer, said “The Target is a highly differentiated and innovative player that is expected to revolutionize consumer health & wellness technology. This acquisition will provide the Target with capital to support its product launch and commercialization strategy as well as provide our investors with the opportunity to participate in a next generation healthtech play.”
I know I know, every SPAC claims to be revolutionizing something…. but thats one heck of a description. So I got to digging….
Quick info:
SCPE has a NAV of 10.118, and closed on 1/8 at 10.23. That leaves maximum downside risk of 1.09%.
SCPE has an extension vote on 1/12. If you were a shareholder following the close on 12/21, make sure to cast your vote.
Who could the target be?
My best guess: Singapore start-up X-ZELL. X-ZELL is fusing next-generation cell detection technology with Artificial Intelligence to identify clinically significant cancers at the earliest stages – non-invasively, accurately and affordably.
X-ZELL closed an oversubscribed Seed+ round in October, led by Deutsche Industrieanlagen (DIAG). Here’s a quote from Martin Wiechers, Managing Director at DIAG:
“As we diversify our portfolio, the focus is on businesses that have both a strong product and a strong commercialization plan,” he explains. “X-ZELL is one of these rare species. They have a technology that is capable of revolutionizing cancer diagnostics.”
Sound familiar? Additionally, X-ZELL and the sponsor are both headquartered out of Singapore.
If not X-ZELL, they could still land an attractive target, and I don’t mind betting on the impressive SCPE team. Love when the SPAcs have their own websites.
This is purely speculation, I could be totally wrong. Either way, trading is all about your risk/reward ratio, and I’ll risk 1% for some serious upside any day. I wouldn’t be surprised to see more details released prior to the 1/12 extension vote.
If you have any other guesses about who the potential target might be shoot me a comment/DM on twitter @spac_attack.
Disclosure: The above references are an opinion and are for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.