On September 15, PRenetics, a Hong Kong genetic testing and health diagnosis company, submitted F-1 documents to the US SEC. It plans to go public through a merger with Artisan Acquisition, a SPAC company initiated by well-known Hong Kong entrepreneur Zheng Zhigang. At the same time, this is also the first time that SPAC company Artisan Acquisition has announced a target merger company since listing on the NASDAQ on May 14. This means that it will enter the second phase of SPAC — the pre-merger phase after the announcement.

In the second phase, Artisan Acquisition Corp. has announced the target company. If investors buy shares at this stage, it means that they are optimistic about their merger and acquisition capabilities and the target company Prenetics.

It is worth noting that at this stage, Artisan Acquisition Corp. has been more than 52 days since listing, so investors can trade their common shares and warrants separately. That is, each unit's ARTAU can be split into common stock ARTA and warrants ARTAW after being independently applied for by investors, and investors can trade ARTAU, ARTA, or ARTAW separately.

Shareholders' meetings

After SPAC officially announces the target company, it is also necessary to go through a shareholders' meeting to pass a business merger agreement between the two parties. If more than 50% of shareholders vote yes, Artisan Acquisition Corp. and Prenetics will complete the merger and acquisition, and investors will also receive a portion of the company's shares after the merger in return.

However, if more than 50% of shareholders vote against it, the merger and acquisition fails, and within the specified period (18-24 months), Artisan Acquisition Corp.'s management team will choose to re-search for potential mergers and acquisitions.

However, shareholders who voted against this have two options. One is to choose to redeem the funds corresponding to the equity ratio in the escrow account, and the other is to follow this transaction to complete the merger and acquisition.

SPAC shareholder redemption rights

If this merger and acquisition deal lacks market appeal, Artisan Acquisition Corp. shareholders can choose to redeem their SPAC shares, that is, before the business merger is implemented, public investors can request the redemption of their subscribed common shares and return the corresponding investment funds (in proportion to escrow account equity at that time).

If public investors are optimistic about the business merger, they can exercise warrants after the merger is implemented to buy common shares of SPAC at a discounted price.

It is important to note that the voting rights contained in common stock, warrants, and redemption rights are separate. Whether SPAC shareholders vote for or against (or without a vote) on the SPAC merger and acquisition deal at the shareholders' meeting, it does not affect the exercise of their right of redemption.