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A comment on 23andMe to merge with VG Acquisition Corp. to become publicly-traded company. Parent comment

Re:23andMe to merge with VG Acquisition Corp. to become publ... by bhickey on Friday February 05, 2021 @12:00PM (#26038439)
My understanding was that SPAC shares came with a warrant that could be exercised for shares in the acquisition target, rather than transmuted directly into shares. After the management fee, market premium and exercise cost are you really coming out ahead? Am I misunderstanding the mechanics?
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Re:23andMe to merge with VG Acquisition Corp. to become publ... by smallscientist on Friday February 05, 2021 @12:40PM (#26038939)
No, you're not coming out ahead. You're roughly paying a 20% cost of capital. In today's frothy markets, you might make up for that in the public markets, but it does seem that mostly second tier companies are going public through SPACs.
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Re:23andMe to merge with VG Acquisition Corp. to become publ... by ericmay on Friday February 05, 2021 @01:16PM (#26039414)
Depends on the SPAC and the target company.
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