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23andMe Shares Pop On Nasdaq

Shares of consumer genetic testing and research company jumped 21 percent on the Nasdaq Thursday as the company’s first day as public company.

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The Sunnyvale, California-based company announced in February through a merger with VG Acquisition Corp., a special-purpose acquisition company, or SPAC, sponsored by.

Shares, now trading under the ticker symbol ME, opened at $11.13 and quickly rose throughout the day to close at $13.32 per share.

The business combination values at an enterprise value of approximately $3.5 billion, according to the company. The transaction was expected to deliver up to $759 million of gross proceeds through the contribution of up to $509 million of cash from VG Acquisition Corp. and a concurrent $250 million private placement of common stock.

In its , 23andMe reported revenue of $305.5 million during the fiscal year ended March 31, 2020, down from the $440.9 million for the same period in 2019. Net losses for fiscal year 2020 were $250.9 million, widening the gap of losses reported in 2019 of $183.5 million.

The company reported 10.7 million customers as of Dec. 31, 2020. As of Jan. 31, there were 83,400 subscribers to 23andMe+, a service launched in October 2020 to provide members with enhanced genetic testing reports.

In addition, the company said it “鈥 as it continues to expand its R&D and develop drugs itself or with collaborators.

The company is the latest to ride the SPAC heatwave that became popular last year. Numbers for 2021 are already setting a new record so far this year with 344 deals raising $107.5 billion,

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