CM Life Sciences III Inc., Sponsored by Affiliates of Casdin Capital and Corvex Management, Announces Closing of $552 Million Initial Public Offering

Rhea-AI Summary

CM Life Sciences III Inc. has successfully completed its initial public offering (IPO) of 55,200,000 units at $10.00 each, which includes an additional 7,200,000 units from the underwriters' over-allotment option. The units commenced trading on Nasdaq under the ticker symbol CMLTU on April 7, 2021. Each unit comprises one share of Class A common stock and one-fifth of a redeemable warrant, with each warrant convertible to one share of Class A stock at $11.50. The Company aims to target business combinations in the fragmented life sciences sector, focusing on tools, synthetic biology, and diagnostics.

Positive

• Completed IPO of 55,200,000 units raising significant capital.
• Targets areas of life sciences that are often fragmented, potentially leading to high growth.

Negative

• The IPO may lead to shareholder dilution.

CM Life Sciences III Inc. (the “Company”) announced today that it closed its initial public offering of 55,200,000 units at $10.00 per unit, including 7,200,000 units issued pursuant to the exercise in full by the underwriters of its over-allotment option. The units are listed on The Nasdaq Capital Market (“Nasdaq”) and began trading under the ticker symbol “CMLTU” on April 7, 2021. Each unit consists of one share of Class A common stock and one-fifth of one redeemable warrant, with each whole warrant exercisable to purchase one share of Class A common stock at a price of $11.50 per share. After the securities comprising the units begin separate trading, the shares of Class A common stock and warrants are expected to be listed on Nasdaq under the symbols “CMLT” and “CMLTW,” respectively.

The Company, sponsored by affiliates of Casdin Capital, LLC and Corvex Management LP, is led by Chief Executive Officer Eli Casdin and Chairman Keith Meister. The Company is a blank check company formed for the purpose of effecting a business combination. The Company intends to focus its search for business combination targets in three separate areas of the life sciences industry that are often fragmented – life sciences tools, synthetic biology and diagnostics.

Jefferies LLC and Cowen and Company, LLC served as the joint book runners for the offering.

The offering was made only by means of a prospectus. Copies of the prospectus may be obtained from Jefferies LLC, Attn: Equity Syndicate Prospectus Department, 520 Madison Avenue, 2nd Floor, New York, NY 10022, by telephone: 877-821-7388 or by email: Prospectus_Department@Jefferies.com or from Cowen and Company, LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY, 11717, Attn: Prospectus Department, by telephone: 833-297-2926 or by email: postSaleManualRequests@broadridge.com..

Registration statements relating to these securities became effective on April 6, 2021. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

FORWARD-LOOKING STATEMENTS

This press release contains statements that constitute “forward-looking statements,” including with respect to the anticipated use of the net proceeds. No assurance can be given that the net proceeds of the offering will be used as indicated. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including those set forth in the Risk Factors section of the Company’s registration statement and preliminary prospectus for the offering filed with the U.S. Securities and Exchange Commission (the “SEC”). Copies are available on the SEC’s website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210409005454/en/

FAQ

What is the purpose of the IPO by CM Life Sciences III Inc.?

The IPO aims to raise capital for potential business combinations in the life sciences industry.

What is the ticker symbol for CM Life Sciences III Inc. on Nasdaq?

The ticker symbol is CMLTU.

How many units were offered in the IPO by CM Life Sciences III Inc.?

The IPO offered a total of 55,200,000 units.

What are the components of each unit offered in the CM Life Sciences III Inc. IPO?

Each unit consists of one share of Class A common stock and one-fifth of a redeemable warrant.

What is the exercise price for the warrants from CM Life Sciences III Inc.'s IPO?

The warrants can be exercised to purchase one share of Class A common stock at a price of $11.50 per share.

When did trading of CMLTU begin on Nasdaq?

Trading under the ticker symbol CMLTU began on April 7, 2021.