Human Longevity, Inc., (HLI), a company that uses genomic insights to help people live longer, has found a way to extend the lifespan of its businesses.The company has reached Merger transaction This will take the company public and inject $345 million to bring its approach to life extension to more users in the United States and around the world.
San Diego-based HLI plans to merge with Freedom Acquisition I Corporation, a special purpose acquisition company (SPAC) whose shares are currently traded on the New York Stock Exchange. This is not done yet. The two companies have signed a letter of intent outlining plans for a business combination. This letter has not been added to Freedom’s securities filings and is not binding.
Consistent with the uncertainty facing companies trying to join the public markets in the current volatile financial conditions, HLI and Freedom said there is “no assurance that a definitive agreement will be reached or that the proposed transaction will be completed.” But if a deal is reached, the companies said, The combined business will be worth about $1 billion, reaching the so-called The unicorn status that HLI gained and then lost.
HLI was founded by genome sequencing pioneer J. Craig Venter. Founded in 2014, the startup aimed to sequence the genes of people with cancer and other diseases, creating a database of sequences that could be used to develop new treatments for diseases of aging. The work includes sequencing the patient’s microbiome. In addition to its own research, HLI intends to make money by providing life science companies and academic institutions with access to the database for research work.
Some of HLI’s efforts have resulted in business units that offer various services. But not all are still part of the company. For example, HLI sells its oncology division Acquired from NeoGenomics in 2020 for $37 million. At the time, HLI said the deal would allow the company to focus on longevity by offering analytical products to individuals.
HLI currently provides patients with comprehensive analyses—genome sequencing, whole-body MRI scans, and blood tests—for early detection and remission of serious disease. In particular, HLI claims that its methods can predict lifetime and short-term risk of chronic age-related diseases. The AI-driven technology is available through a program HLI calls Human Longevity Care. Registered users (the HLI refers to them as “members”) get “accurate maps” that generate personalized insights into their health. Members also have access to a dedicated physician who acts as a “personal longevity leader” to provide tailored care for each patient’s personal longevity plan.
Although HLI claims to have invested more than $500 million in research and development since 2013, the company has not disclosed how many members have signed up for its technology or how much money the business makes. These details are usually detailed in regulatory filings, such as a prospectus or proxy statement. HLI and Freedom haven’t gone that far. The parties are completing due diligence on the transaction, which means the business combination agreement is still being worked out. If the parties formally enter into the agreement, Freedom and HLI will each file documents related to the transaction with securities regulators. At that point, the deal still needs to be approved by the boards of both companies, and then shareholders.
The companies said they expected to sign a business combination agreement in the third quarter of this year, before obtaining approval from Freedom shareholders in the first quarter of next year. From Freedom’s perspective, this time frame brings things close. Each SPAC sets a time limit for identifying and completing a business combination. The clock started ticking after the IPO. Funds in the SPAC account must be returned to the investor if it expires before the transaction is completed.when free complete initial public offering In March 2021, it set a time frame of 24 months to complete the business combination. However, this period can be extended.
If the merger closes in time, HLI will receive $345 million in Freedom’s account — assuming no shareholders exercise their right to cash in on the shares. The combined company will retain Freedom’s listing on the New York Stock Exchange, but will trade under the new ticker symbol. HLI, led by CEO He Weiwu, said it plans to use the funds to grow its business and make more technological innovations.
“At HLI, we firmly believe that data-driven technologies such as genome sequencing, artificial intelligence, whole-body MRI, and more will revolutionize human healthcare,” he said in a prepared statement. “We’ve invested nearly 10 years and over $500 million to build a very dedicated team to bring these technologies together to make it a reality for people to delay age-related chronic diseases. We believe this platform will save the future millions of lives and significantly reduce healthcare costs.”
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