Akili completed its business combination with Social Capital Suvretta Holdings I, a SPAC controlled by billionaire investor Chamath Palihapitiya. The digital medicine company begins trading today on the Nasdaq under the new ticker symbol AKLI.
Akili raised more than $163 million from the transaction, before expenses and advisory fees, which, together with cash on hand, the company expects will be sufficient to fund at least 24 months of business operations, excluding any contributions from EndeavorRx® revenues.
SPAC redemptions on the deal topped over 99%.
When announced in February, the transaction had been expected to deliver up to $412 million in gross cash proceeds to Akili.
Proceeds from the merger will fund the commercial launch of EndeavorRx, a first-of-its-kind, U.S. Food and Drug Administration cleared and Conformité Européenne (CE) Mark certified prescription digital therapeutic for pediatric attention-deficit/hyperactivity disorder, as well as potential expansion into additional ADHD patient populations. Proceeds will also support the advancement of the company’s late-stage pipeline of product candidates designed to treat neuropsychiatric diseases, including autism spectrum disorder (ASD), multiple sclerosis (MS), and major depressive disorder (MDD).
The SPAC’s shareholders approved the transaction last week.
Morgan Stanley & Co. and Cowen and Company served as financial advisors to Akili. Morgan Stanley, Credit Suisse, and Cowen served as co-placement agents to Social Capital Suvretta I with respect to the portion of the PIPE financing raised from non-insider qualified institutional buyers and institutional accredited investors. Morgan Stanley, Credit Suisse, and Cowen did not act as agents or participate in any role with respect to, and did not earn any fees from, the portion of the PIPE financing raised from insiders and individual investors. Credit Suisse and Cowen served as capital markets advisors to Akili. BofA Securities, Inc. served as capital markets advisor to SCS. Goodwin Procter LLP served as legal counsel to Akili. Wachtell, Lipton, Rosen & Katz served as legal counsel to SCS. Skadden, Arps, Slate, Meagher & Flom LLP served as legal advisor to the PIPE placement agents. Read more.
