Chamath Palihapitiya, once touted as the SPAC King, used blank check companies to take several private companies public.
The billionaire venture capitalist is now distancing himself from investment vehicles because of the SPAC craze.
See Also: Trump's Deadbeat SPAC Switches To P.O. What Happened: According to a new filing, Palihapitiya currently holds less than 5% of the shares in Clover Health Investments CLOV.
He sold more than 11 million shares of Clover Health from Sept. 27 to Oct. 3, ranging in price from $1.55 to $2.02 per share.
After the exit, Palihapitiya now owns 19 million shares, or 4.99% of the company.
The reporting person on the application was ChaChaCha - Palihapitiya's former SPAC Social Capital Hedosophia III with the IPOC, according to the former SPAC Social Capital Hedosophia III. The transactions allow the recognition of related tax losses, according to the filing.
The merger between Clover Health SPAC and Clover Health was announced in October 2020. At the time, Clover Health boasted growth three times faster than the industry and had the fastest growing Medicare Advantage plan in the U.S. It projected to have $880 million in revenue for 2021 and $1.72 billion in revenue by 2023.
Palihapitiya called the Clover Health deal one of the most straightforward investments I've ever made. He believes that Clover Health will reach profitability by the year 2023.
See also: 5 things you might not know about Chamath Palihapitiya :
The sale marks the latest in a string of recent exits from SPAC related companies from the so-called SPAC king, including the liquidation of Social Capital Hedosophia Holdings Corp IV IPOD and Social Capital Hedosophia Holdings Corp VI IPOF.
Over the past two years, we evaluated more than 100 targets and came close to doing a deal a number of times, but we walked away for a couple of reasons, Palihapitiya said.
The SPAC will liquidate with a net asset value expected to be $10.01. The warrants for both SPACs will be worthless.
I am proud of the companies that we have helped bring public Virgin Galactic, Opendoor, Clover Health, SoFi, ProKidney and Akili. I am proud to have played a role in each of their respective journeys because they are well positioned to bring innovation to each of the end markets over the next several years. In August, Benzinga shared a look at how SPACs from Palihapitiya and associated PIPE deals have performed. Palihapitiya recently led a Series A financing for Harvesting Farmer Network, a company that provides access to farming tools and logistics in India.
Price Action: Clover Health shares were trading at $1.79 at the time of writing versus a 52 week range of $1.55 to $8.58. The shares have fallen 75% over the last year and down 82% from the $10 SPAC price, making it one of the poor performing companies that Palihapitiya took public.