A SPAC on the wrist

Sponsored By: March 31, 2022 Good morning traders, Welcome back to The Daily Setup. Markets were down yesterday, ending their four day streak. Here’s what’s on the docket today: - Adagio has a COVID treatment breakthrough - The SEC proposes new rules on SPACs - Citigroup is exiting India Let’s get to work. Nick How'd the markets look? Market Outlook Music to Investors Ear’s Biggest Mover [Activision Blizzard, Inc. ]( Despite its namesake, Adagio Therapeutics shares rose anything but slowly on Wednesday after the company [announced]( that it had hit goals during clinical trials for its COVID-19 treatment. The drug is the first monoclonal antibody treatment to hit these benchmarks and was developed in response to the rise in the Omicron variant that the country, errr, world, faced towards the end of last year. Not that you need a reminder on that. - The week has been a roller coaster for Adagio, considering it hit its 52-week low of $3.67 on Monday. - As of Q4, Adagio has enough [cash and investment]( to fund ops into the second half of 2024, unless it takes the Adam Neumann route. - The drug reduces risk of symptomatic COVID by 71% when taken in the pre-exposure phase, and 75% in post-exposure. With this success in early trials, Adagio plans to take things up a notch and begin the process for emergency use authorization from the FDA, submitting the request by the end of Q2. If the authorization is granted, you can bet investors will be lining up to drop their cash faster than Pfizer can say “time for another booster.” A SPAC on the wrist Street Stories [Cycling Downhill] The SEC is gearing up to slap SPACs with new rules and regulations in regards to disclosures and forecasting. The proposed rules would leave the blank-check companies [open]( to lawsuits from investors if they are sharing overly “optimistic” business results of the firms they plan to take public. - The [new rules]( will also work to address conflicts of interest between SPACs and their targets - The SPAC’s private business, i.e. the one it’s taking public, will need to be a co-registrant when the SPAC files to go public - It will also protect investors from dilution of assets, which can occur when the SPAC issues more shares after agreeing to a buyout As we all know, SPACs have been all the rage for companies that are either too lazy, or don’t have the resources to take themselves public, and have gone well for some, and poorly for others. If the new rules end up being approved, it will be worth keeping an eye on the future of SPAC IPOs. And companies may, God forbid, have to go public the old fashioned way. Sponsored By: The Pharmacy of the Future Going to the pharmacy to get your prescriptions isn't always easy — but it should be. [NowRx]( is rebuilding the retail pharmacy experience with amazing service plus free same-day prescription delivery and they’re looking for [investors to join them.]( The company’s proprietary pharmacy software “QuickFill and dispensing robotics can count, bottle, and label the medications in under 30 seconds” – all while dramatically reducing costs and common pharmacy errors. Best of all, unlike mail pharmacies, NowRx is local and uses their own HIPAA-certified employees to deliver medications which means no unexpected delays at the post office. All of that equals a fast, convenient, hassle-free experience for customers. In December, NowRx saw record revenue of nearly $2.2M putting them on pace for $26M on an annualized basis… But they have ambitions to do a whole lot more than that. The company has already announced new locations in Las Vegas, Seattle, and Denver for 2022 and with their newest Telehealth product growing like crazy (Over 1,200% in 2021) NowRx looks like a great investment for the new year. [Learn how you can own shares in this rapidly growing startup today.]( [Learn more about NowRx Now!]( See Disclaimer Below Cross River: VC and Fintech’s Bestie Token Talk [Token Talk] Fintech Cross River Bank disclosed Wednesday that they have raised [$620M in funding]( at a valuation of just over $3B, dwarfing the company’s last fund raise of $30M in 2016. [Cross River]( is a “technology infrastructure provider that powers lending and payments for many of the fintechs that top VCs are also backing.” The company’s client roster includes fintech stars like Coinbase, Affirm, Divvy, Stripe, and Rocket Loans just to name a few. - [According to CEO Gilles Gade](, Cross River has been profitable every year since 2010. In other words, they’re better at what they do than whatever it is you do. - The company will be using the new funding to enhance its [four core competencies](: embedded payments, cards, lending, and crypto solutions. - Web 3.0 and crypto will serve as the company’s long term focus. While big banks are the ones that dominate media headlines, Cross River has been slowly but surely gaining traction within the VC and fintech community for more than a decade. Their story is a perfect example of taking a calculated risk on something that one’s competitors are unable to do. David George, general partner of Andreessen Horowitz’s growth fund, [told TechCrunch](, “When Coinbase was first starting out and looking for a partner bank, many traditional financial institutions had blanket policies that prevented them from participating in crypto. Cross River, on the other hand, had the foresight to lean into this new frontier and support Coinbase, and many other leading crypto companies, who are still happy partners to this day.” I’m keeping Cross River’s name in my f*cking mouth *Will Smith voice* because if a startup is using them, that startup may just be the next big thing. Citi Getting Leaner Deals and Rumors [Deals and Rumors] And cleaning is exactly what Citigroup CEO Jane Fraser has been doing since becoming head honcho of the bank. Citi (C) announced Wednesday that they are selling their Indian retail banking business to Axis Bank for [$1.6B](. This marks Citi’s [eighth business sale]( in the Asian-Pacific region under Fraser’s plan to make the company leaner to boost profitability. Citi’s stock closed Wednesday’s trading session down [2.67%]( on the news. Meanwhile, Axis Bank (AXBK.NS), which trades on the National Stock Exchange of India, closed its trading session up [1.71%](. - The deal will augment Axis’ credit card and retail business while allowing Citi to retain their institutional clients in India. - The sale is expected to close in the first half of 2023, and Citi’s 3,600 employees on the retail banking side will transfer over to Axis at that time. - [In January](, Citi sold its retail businesses in Indonesia, Malaysia, Thailand, and Vietnam. Damn Fraser! What did Southeast Asia ever do to you? Since most of us do not trade stocks on the National Stock Exchange of India, I’ll focus on Citi’s technicals. From June 2020-September 2020, Citi’s stock traded in a range from [$49-$54](. Citi’s most recent low on March 14th printed $53.83 which is the topside of the previously mentioned range. I’m keeping C on my watchlist as another break of the $54 level could push Citi down to the $49 level. Link Roundup Other News Other News Link Roundup + Same Day BJ’s? I’m In - BJ’s Launching Same Day Select Service Nationwide ([link]() + AR Beer Goggles is a Real Thing - Alibaba Invests in AR Glasses Maker ([link]() + Still Living Off That ‘Vid Money - BioNTech Earnings Top Estimates; Plans Buyback and Special Dividend ([link]() + I Don’t Know What to Tell You if You Still Can’t Get a Job - ADP Jobs Report Tops Estimates ([link]() + But What Are Lenders To Do Now? - Mortgage Refinance Demand Plunges 60% ([link]() Meme Of The Day Are we bullish or bearish on pet rock NFTs? [Via @NFTWITTER]( [other news] 62 Calef Hwy #233 Lee, New Hampshire 03861 United States Questions or concerns about our products? Email our team here support@thedailysetup.com © Copyright 2022, [RagingBull]( - [Refund Policy]( - [Privacy Policy]( - [Terms & Conditions]( SPONSORED AD PLACEMENT: This email contains an advertisement by a party that is unaffiliated with Raging Bull. 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