|
Cayman Islands
|
| |
3826
|
| |
Not Applicable
|
|
|
(State or Other Jurisdiction of
Incorporation or Organization) |
| |
(Primary Standard Industrial
Classification Code Number) |
| |
(I.R.S. Employer
Identification Number) |
|
|
Jonathan B. Stone, Esq.
Paloma Wang, Esq. Skadden, Arps, Slate, Meagher & Flom LLP 42/F, Edinburgh Tower, The Landmark 15 Queen’s Road Central Hong Kong Tel: +852 3740-4700 |
| |
Peter X. Huang, Esq.
Skadden, Arps, Slate, Meagher & Flom LLP 30/F, China World Office 2 No. 1, Jian Guo Men Wai Avenue Beijing 100004, P.R. China Tel: +86 10-6535-5500 |
| |
Jesse Sheley
Joseph Raymond Casey Ram Narayan Louis Rabinowitz Kirkland & Ellis International LLP 26th Floor, Gloucester Tower The Landmark 15 Queen’s Road Central Hong Kong Tel: +852-3761-3300 |
| |
Steve Lin
Kirkland & Ellis International LLP 29th Floor, China World Office 2 No.1 Jian Guo Men Wai Avenue Beijing 100004, P.R. China Tel: +86 10-5737-9300 |
|
|
CALCULATION OF REGISTRATION FEE
|
| ||||||||||||||||||||||||||||
|
Title of each class of securities
to be registered |
| | |
Amount to be
registered |
| | |
Proposed maximum
offering price per unit |
| | |
Proposed maximum
aggregate offering price |
| | |
Amount of
registration fee(3) |
| ||||||||||||
|
PubCo Class A Ordinary Shares
|
| | | | | 127,530,989(1) | | | | | | $ | 9.88 | | | | | | $ | 1,260,006,171.32(2) | | | | | | $ | 116,802.57 | | |
|
PubCo Class A Ordinary Shares
|
| | | | | 803,622(4) | | | | | | $ | 9.90 | | | | | | $ | 7,955,857.80(5) | | | | | | $ | 737.51 | | |
|
PubCo Warrants to purchase PubCo Class A Ordinary Shares
|
| | | | | 11,311,390(6) | | | | | | $ | 1.01 | | | | | | $ | 11,424,504.90(7) | | | | | | $ | 1,059.05 | | |
|
Total
|
| | | | | | | | | | | | | | | | | | $ | 1,279,386,533.02 | | | | | | $ | 118,599.13 | | |
| | | | Sincerely, | |
| | | |
Cheng Yin Pan
Chief Executive Officer and Director |
|
| | |
PAGES
|
| |||
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PAGES
|
| |||
| | | | 341 | | | |
| | | | 342 | | | |
| | | | 343 | | | |
EXPERTS | | | | | 344 | | |
| | | | F-1 | | | |
ANNEXES | | | |||||
Annex A:
Business Combination Agreement (filed as Exhibit 2.1 to this proxy statement/prospectus)
|
| | | | | | |
Annex B:
Amended and Restated Memorandum and Articles of Association of PubCo (filed as Exhibit 3.1 to this proxy statement/prospectus)
|
| | | | | | |
| | |
Share Ownership and Voting Power in PubCo(1)(2)(3)(4)
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
Assuming No Redemptions (Shares)
|
| |
Assuming Maximum Redemptions (Shares)
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
Number of
Class A Ordinary Shares |
| |
Share
Ownership % |
| |
Voting
Power % |
| |
Number of
Class B Ordinary Shares |
| |
Share
Ownership % |
| |
Voting
Power % |
| |
Number of
Class A Ordinary Shares |
| |
Share
Ownership % |
| |
Voting
Power % |
| |
Number of
Class B Ordinary Shares |
| |
Share
Ownership % |
| |
Voting
Power % |
| ||||||||||||||||||||||||||||||||||||
Prenetics Shareholders
|
| | | | 73,105,428 | | | | | | 52.62% | | | | | | 22.37% | | | | | | 9,890,352 | | | | | | 7.12% | | | | | | 60.52% | | | | | | 73,105,428 | | | | | | 64.72% | | | | | | 24.30% | | | | | | 9,890,352 | | | | | | 8.75% | | | | | | 65.74% | | |
Artisan Public Shareholders
|
| | | | 33,934,235 | | | | | | 24.43% | | | | | | 10.38% | | | | | | — | | | | | | — | | | | | | — | | | | | | 8,003,035 | | | | | | 7.08% | | | | | | 2.66% | | | | | | — | | | | | | — | | | | | | — | | |
Sponsor and certain Artisan directors(5)
|
| | | | 9,233,558 | | | | | | 6.65% | | | | | | 2.83% | | | | | | — | | | | | | — | | | | | | — | | | | | | 9,233,558 | | | | | | 8.17% | | | | | | 3.07% | | | | | | — | | | | | | — | | | | | | — | | |
PIPE Investors
|
| | | | 6,000,000 | | | | | | 4.32% | | | | | | 1.84% | | | | | | — | | | | | | — | | | | | | — | | | | | | 6,000,000 | | | | | | 5.31% | | | | | | 1.99% | | | | | | — | | | | | | — | | | | | | — | | |
Forward Purchase Investors(5)
|
| | | | 6,750,000 | | | | | | 4.86% | | | | | | 2.07% | | | | | | — | | | | | | — | | | | | | — | | | | | | 6,750,000 | | | | | | 5.97% | | | | | | 2.24% | | | | | | — | | | | | | — | | | | | | — | | |
Pro forma Combined Company Ordinary Shares
|
| | | | 129,023,221 | | | | | | 92.88% | | | | | | 39.48% | | | | | | 9,890,352 | | | | | | 7.12% | | | | | | 60.52% | | | | | | 103,092,021 | | | | | | 91.25% | | | | | | 34.26% | | | | | | 9,890,352 | | | | | | 8.75% | | | | | | 65.74% | | |
| | |
As of September 30, 2021
|
| |||
Balance Sheet Data: | | | | | | | |
Cash
|
| | | $ | 227,157 | | |
Investments held in trust account
|
| | | $ | 339,362,925 | | |
Total assets
|
| | | $ | 340,418,018 | | |
Warrant liabilities
|
| | | $ | 19,690,172 | | |
Derivative liability – forward purchase agreement
|
| | | $ | 1,111,201 | | |
Total liabilities
|
| | | $ | 34,473,791 | | |
Class A ordinary shares subject to possble redemption
|
| | | $ | 339,342,350 | | |
Total shareholders’ deficit
|
| | | $ | (33,398,123) | | |
| | |
Three Months
Ended September 30, 2021 |
| |
For the Period
From February 2, 2021 (Inception) Through September 30, 2021 |
| ||||||
Statements of Operations Data: | | | | | | | | | | | | | |
Loss from operations
|
| | | $ | (1,689,501) | | | | | $ | (2,202,636) | | |
Expensed offering costs
|
| | | | — | | | | | | (534,056) | | |
Unrealized gain on investments held in trust account
|
| | | | 50,905 | | | | | | 20,575 | | |
Change in fair value of derivative liability – forward purchase agreement
|
| | | | (1,723,962) | | | | | | (1,500,843) | | |
Change in fair value of warrant liabilities
|
| | | | (741,308) | | | | | | (5,435,602) | | |
Net loss
|
| | | $ | (4,103,866) | | | | | $ | (9,652,562) | | |
Basic and diluted weighted average shares outstanding
|
| | | | 43,917,793 | | | | | | 24,987,098 | | |
Basic and diluted net loss per ordinary share
|
| | | $ | (0.09) | | | | | $ | (0.39) | | |
| | |
For the Period
From February 2, 2021 (Inception) Through September 30, 2021 |
| |||
Statement of Cash Flows Data: | | | | | | | |
Net cash used in operating activities
|
| | | $ | (1,246,636) | | |
Net cash used in investing activities
|
| | | $ | (339,342,350) | | |
Net cash provided by financing activities
|
| | | $ | 340,816,143 | | |
| | |
For the Six Months
Ended June 30, |
| |
For the Years Ended
December 31, |
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2020
|
| |
2019
|
| ||||||||||||
Selected Statement of Profit or Loss and Other Comprehensive Income Data:
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Revenues
|
| | | $ | 136,477,480 | | | | | $ | 11,980,796 | | | | | $ | 65,179,515 | | | | | $ | 9,233,089 | | |
Operating expenses
|
| | | | (110,602,062) | | | | | | (17,133,455) | | | | | | (66,174,641) | | | | | | (30,036,374) | | |
Profit/(loss) from operations
|
| | | | 25,875,418 | | | | | | (5,152,659) | | | | | | (995,126) | | | | | | (20,803,285) | | |
Finance costs
|
| | | | (422,356) | | | | | | (27,359) | | | | | | (59,567) | | | | | | (69,390) | | |
Fair value loss on convertible securities
|
| | | | (29,054,669) | | | | | | — | | | | | | (2,846,750) | | | | | | — | | |
Loss before taxation
|
| | | | (3,601,607) | | | | | | (5,180,018) | | | | | | (3,901,443) | | | | | | (20,872,675) | | |
Income tax (expense)/credit
|
| | | | (4,258,869) | | | | | | (130,959) | | | | | | 1,937,558 | | | | | | 677,474 | | |
Loss for the period/year
|
| | | | (7,860,476) | | | | | | (5,310,977) | | | | | | (1,963,885) | | | | | | (20,195,201) | | |
Loss attributable to: | | | | | | | | | | | | | | | | | | | | | | | | | |
Equity shareholders of Prenetics
|
| | | | (7,855,358) | | | | | | (5,308,556) | | | | | | (1,939,689) | | | | | | (20,141,991) | | |
Non-controlling interests
|
| | | | (5,118) | | | | | | (2,421) | | | | | | (24,196) | | | | | | (53,210) | | |
Loss for the period/year
|
| | | | (7,860,476) | | | | | | (5,310,977) | | | | | | (1,963,885) | | | | | | (20,195,201) | | |
Weighted average number of ordinary, shares for the purpose of basic loss per share
|
| | | | 14,543,817 | | | | | | 12,891,569 | | | | | | 13,176,752 | | | | | | 12,891,569 | | |
Basic loss per share
|
| | | $ | (0.54) | | | | | $ | (0.41) | | | | | $ | (0.15) | | | | | $ | (1.56) | | |
Diluted loss per share
|
| | | $ | (0.54) | | | | | $ | (0.41) | | | | | $ | (0.15) | | | | | $ | (1.56) | | |
| | |
As of June 30,
2021 |
| |
As of December 31,
|
| ||||||||||||
|
2020
|
| |
2019
|
| ||||||||||||||
Selected Statement of Financial Position Data: | | | | | | | | | | | | | | | | | | | |
Assets | | | | | | | | | | | | | | | | | | | |
Non-current assets
|
| | | $ | 39,185,044 | | | | | | 34,926,561 | | | | | | 14,056,248 | | |
Current assets
|
| | | | 109,804,442 | | | | | | 43,956,750 | | | | | | 15,630,093 | | |
Total assets
|
| | | | 148,989,486 | | | | | | 78,883,311 | | | | | | 29,686,341 | | |
Liabilities | | | | | | | | | | | | | | | | | | | |
Preferred shares classified as non-current liabilities
|
| | | | 356,336,512 | | | | | | — | | | | | | — | | |
Other non-current liabilities
|
| | | | 2,339,209 | | | | | | 804,574 | | | | | | 930,559 | | |
Current liabilities
|
| | | | 44,417,947 | | | | | | 47,071,730 | | | | | | 11,903,076 | | |
Total liabilities
|
| | | | 403,093,668 | | | | | | 47,876,304 | | | | | | 12,833,635 | | |
Equity | | | | | | | | | | | | | | | | | | | |
Total (equity deficiency)/equity attributable to equity shareholders of Prenetics
|
| | | | (254,021,658) | | | | | | 31,084,413 | | | | | | 16,905,916 | | |
Non-controlling interests
|
| | | | (82,524) | | | | | | (77,406) | | | | | | (53,210) | | |
Total (equity deficiency)/equity
|
| | | | (254,104,182) | | | | | | 31,007,007 | | | | | | 16,852,706 | | |
Total equity and liabilities
|
| | | | 148,989,486 | | | | | | 78,883,311 | | | | | | 29,686,341 | | |
| | |
For the six months ended June 30, 2021
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
Prenetics
$ |
| |
Prenetics HK
$ |
| |
WFOE
$ |
| |
VIE
$ |
| |
Other
Subsidiaries $ |
| |
Prenetics
Adjustment $ |
| |
WFOE
Adjustment $ |
| |
VIE
Adjustment $ |
| |
Other
Adjustment $ |
| |
Prenetics
Group $ |
| ||||||||||||||||||||||||||||||
Revenue
|
| | | | — | | | | | | 68,848,016 | | | | | | — | | | | | | — | | | | | | 69,086,625 | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,457,161) | | | | | | 136,477,480 | | |
Direct costs
|
| | | | — | | | | | | (26,940,064) | | | | | | — | | | | | | — | | | | | | (54,323,753) | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,412,428 | | | | | | (79,851,389) | | |
Gross profit
|
| | | | — | | | | | | 41,907,952 | | | | | | — | | | | | | — | | | | | | 14,762,872 | | | | | | — | | | | | | — | | | | | | — | | | | | | (44,733) | | | | | | 56,626,091 | | |
Other income and other net
gains/(losses) |
| | | | — | | | | | | (197,745) | | | | | | 3,445 | | | | | | 59 | | | | | | 722,159 | | | | | | — | | | | | | — | | | | | | — | | | | | | (171,875) | | | | | | 356,043 | | |
Selling and distribution expenses
|
| | | | — | | | | | | (4,141,439) | | | | | | — | | | | | | — | | | | | | (2,141,804) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (6,283,243) | | |
Research and development
expenses |
| | | | — | | | | | | (2,263,374) | | | | | | — | | | | | | — | | | | | | (670,117) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,933,491) | | |
Administrative and other operating expenses
|
| | | | — | | | | | | (11,876,112) | | | | | | (8,996) | | | | | | (222) | | | | | | (9,614,103) | | | | | | — | | | | | | — | | | | | | — | | | | | | (390,549) | | | | | | (21,889,982) | | |
Profit/(loss) from
operations |
| | | | — | | | | | | 23,429,282 | | | | | | (5,551) | | | | | | (163) | | | | | | 3,059,007 | | | | | | — | | | | | | — | | | | | | — | | | | | | (607,157) | | | | | | 25,875,418 | | |
Finance costs
|
| | | | (340,387) | | | | | | (33,536) | | | | | | — | | | | | | — | | | | | | (72,029) | | | | | | — | | | | | | — | | | | | | — | | | | | | 23,596 | | | | | | (422,356) | | |
Fair value loss on convertible securities
|
| | | | 811,819 | | | | | | (29,673,603) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (192,885) | | | | | | (29,054,669) | | |
Fair value loss on financial
derivative |
| | | | — | | | | | | (9,750,930) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 9,750,930 | | | | | | — | | |
Loss before taxation
|
| | | | 471,432 | | | | | | (16,028,787) | | | | | | (5,551) | | | | | | (163) | | | | | | 2,986,978 | | | | | | — | | | | | | — | | | | | | — | | | | | | 8,974,484 | | | | | | (3,601,607) | | |
Income tax credit/(expense)
|
| | | | — | | | | | | (4,263,574) | | | | | | — | | | | | | — | | | | | | (96) | | | | | | — | | | | | | — | | | | | | — | | | | | | 4,801 | | | | | | (4,258,869) | | |
Loss for the period
|
| | | | 471,432 | | | | | | (20,292,361) | | | | | | (5,551) | | | | | | (163) | | | | | | 2,986,882 | | | | | | — | | | | | | — | | | | | | — | | | | | | 8,979,285 | | | | | | (7,860,476) | | |
Other comprehensive income
for the period |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Item that may be
reclassified subsequently to profit or loss: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Exchange differences on
translation of: |
| | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
– financial statements of
subsidiaries and joint venture outside Hong Kong |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (147,833) | | | | | | (147,833) | | |
Total comprehensive income
for the period |
| | | | 471,432 | | | | | | (20,292,361) | | | | | | (5,551) | | | | | | (163) | | | | | | 2,986,882 | | | | | | — | | | | | | — | | | | | | — | | | | | | 8,831,452 | | | | | | (8,008,309) | | |
| | |
June 30, 2021
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
Prenetics
$ |
| |
Prenetics HK
$ |
| |
WFOE
$ |
| |
VIE
$ |
| |
Other
Subsidiaries $ |
| |
Prenetics
Adjustment $ |
| |
WFOE
Adjustment $ |
| |
VIE
Adjustment $ |
| |
Other
Adjustment $ |
| |
Prenetics
Group $ |
| ||||||||||||||||||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Property, plant and equipment
|
| | | | — | | | | | | 6,140,480 | | | | | | — | | | | | | — | | | | | | 3,130,877 | | | | | | — | | | | | | — | | | | | | — | | | | | | 9,380 | | | | | | 9,280,737 | | |
Intangible assets
|
| | | | — | | | | | | 1,895,834 | | | | | | — | | | | | | — | | | | | | 125,517 | | | | | | — | | | | | | — | | | | | | — | | | | | | 23,497,879 | | | | | | 25,519,230 | | |
Goodwill
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 4,041,369 | | | | | | 4,041,369 | | |
Deferred tax assets
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 64,303 | | | | | | — | | | | | | — | | | | | | — | | | | | | 4,801 | | | | | | 69,104 | | |
Investment in WFOE
|
| | | | — | | | | | | 500,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (500,000) | | | | | | — | | | | | | — | | | | | | — | | |
Investment in VIE (note (a))
|
| | | | — | | | | | | 43,940 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (43,940) | | | | | | — | | | | | | — | | |
Investment in
subsidiaries |
| | | | 94,300,953 | | | | | | 10,007,241 | | | | | | — | | | | | | — | | | | | | 18,599,819 | | | | | | (94,300,953) | | | | | | — | | | | | | — | | | | | | (28,607,060) | | | | | | — | | |
Other non-current
assets |
| | | | — | | | | | | 7,834,110 | | | | | | — | | | | | | — | | | | | | 12,806 | | | | | | — | | | | | | — | | | | | | — | | | | | | (7,572,312) | | | | | | 274,604 | | |
Non-current assets
|
| | | | 94,300,953 | | | | | | 26,421,605 | | | | | | — | | | | | | — | | | | | | 21,933,322 | | | | | | (94,300,953) | | | | | | (500,000) | | | | | | (43,940) | | | | | | (8,625,943) | | | | | | 39,185,044 | | |
Inventories
|
| | | | — | | | | | | 2,037,451 | | | | | | — | | | | | | — | | | | | | 2,510,249 | | | | | | — | | | | | | — | | | | | | — | | | | | | (428,408) | | | | | | 4,119,292 | | |
Trade receivables
|
| | | | — | | | | | | 35,659,470 | | | | | | — | | | | | | — | | | | | | 24,639,913 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 60,299,383 | | |
Deposits and
prepayments |
| | | | — | | | | | | 4,446,819 | | | | | | 1,403 | | | | | | 108 | | | | | | 1,134,042 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,582,372 | | |
Other receivables
|
| | | | — | | | | | | 67,802 | | | | | | — | | | | | | — | | | | | | 1,871,005 | | | | | | — |