Although one of the greatest achievements in cinematic history, the film Jaws posed a terrible dilemma for oceanographers, ecological conservationists and even seaside businesses. As moviegoers flocked to the box office, the financial success of the masterpiece resulted in lingering damage. Indeed, the BBC.com wrote an op-ed in 2015 that decried how Jaws misrepresented the great white shark.
Essentially, the apex predator of the deep provides a critical balancing act in marine ecosystems, eliminating sick or dying sea life while keeping the population of consumptive species in check. However, misunderstood creatures of the ocean are not the only badly stereotyped entities.
Because of movies such as the Terminator franchise, many people have undoubtedly developed unfounded concerns regarding artificial intelligence and other digitalized protocols. According to Platt College, widely distributed films have the power to “impact our society and popular culture.”
The tragedy as it relates to AI is that in many cases, digitalization improves outcomes for humanity, not the other way around. With AI-healthcare-focused Jupiter Wellness Acquisition Corp., however, the narrative can potentially change for the better. What’s more, you can participate in its upcoming initial public offering (IPO).
- When Is the Jupiter Wellness Acquisition IPO Date?
- Jupiter Wellness Acquisition Financial History
- Jupiter Wellness Acquisition Potential
- How to Buy Jupiter Wellness Acquisition IPO (JWACU) Stock
- JWACU Restrictions for Retail Investors
- JWACU Pre-IPO
- AI as the Future of Healthcare
When Is the Jupiter Wellness Acquisition IPO Date?
At the intersection of AI and healthcare, two of today's most relevant industries, Jupiter Wellness Acquisition could attract significant interest among investors seeking companies with long-term upside catalysts. On the other hand, the timing of the Jupiter Wellness Acquisition IPO is incredibly tricky, saturated with counterbalancing crosswinds.
First up, though, is the launch date. Jupiter Wellness will ink its debut on the IPO calendar on Dec. 7, 2021. On Nov. 1 of this year, the company filed its intention to go public with the U.S. Securities and Exchange Commission (SEC), signaling its focus on merging with an enterprise in the healthcare industry. Preferably, the ideal target will command an equity value of approximately $300 million to $1 billion. As well, management seeks a business leveraging artificial intelligence.
Shares will trade on the Nasdaq exchange under the ticker symbol JWACU. Each unit consists of “one share of common stock and one right to receive one-eighth of a share” upon a completed business combination.
Naturally, you can deduce that Jupiter Wellness is a special purpose acquisition company (SPAC). Also known as a blank-check firm or shell company, a SPAC does not have any operations. Instead, its role is to initiate an IPO to raise funds for an eventual merger with a viable enterprise. Typically, it has 2 years to identify and complete a business combination.
Obviously, one of the main risks with SPACs is that, prior to a merger announcement, you don’t know the end result. While blank-check firms often disclose the characteristics of their ideal target, they’re not bound to that disclosure.
Thus, The New York Times warned recently that SPACs’ redemption rate — or the exiting of shareholders at the initial offering (pre-IPO) price — in 2021 have been around 50%, up dramatically from the 20% witnessed last year. While it’s possible to earn “risk-free yield” if you happen to buy JWACU stock below the pre-IPO price, bear in mind that you’ll be holding shares for around 2 years, during which time you can incur serious opportunity costs.
Further, that redemption rates are so high suggests that at least a few SPACs have dipped below their pre-IPO price (usually $10 per share). Redemptions occur at that rate, meaning that those who bought shares above $10 will lose money if they redeem as opposed to accepting the proposed business combination.
Above all, make sure you assess the pros and cons of SPACs before participating.
Jupiter Wellness Acquisition Financial History
Because SPACs feature no underlying business, Jupiter Wellness as an entity has very little financial detail to go on. Indeed, the lack of information is the tradeoff for what is basically the equivalent of a private-equity opportunity for regular retail investors.
Nevertheless, prospective participants of JWACU stock are not flying completely blind. Per the terms of the underlying company’s amended Form S-1, it will distribute 10 million units at $10 per each, resulting in gross proceeds of $100 million before deducting expenses associated with the deal. And as previously mentioned, the ideal target’s valuation will be between $300 million to $1 billion.
Assuming that Jupiter will not waver from its disclosed mission to merge with an AI-based healthcare firm, the industry focus represents a lucrative prospect. According to MarketsandMarkets.com, AI in the healthcare sector will command a valuation of approximately $6.9 billion by the end of 2021. However, experts project that by 2027, this valuation will skyrocket nearly tenfold to $67.4 billion by 2027.
As you’ve probably heard, SPAC-based IPOs have not all been power players. In fact, against the benchmark S&P 500 index, post-merger business combinations have lagged on a year-to-date basis. Nevertheless, you must judge each SPAC by its own merits. Frankly, a tenfold increase in the total addressable market is incredibly difficult to ignore.
In addition, it’s not out of the question that the above projection might be conservative. Supporting data for this audacious claim arrives courtesy of the Royal College of Physicians in a report published by the Future Healthcare Journal.
In it, the authors confirm “a number of research studies suggesting that AI can perform as well as or better than humans at key healthcare tasks, such as diagnosing disease. Today, algorithms are already outperforming radiologists at spotting malignant tumors and guiding researchers in how to construct cohorts for costly clinical trials.”
Stanford University chimed in, declaring that AI “has the potential to radically alter the field of healthcare. Imagine being able to analyze data on patient visits to the clinic, medications prescribed, lab tests and procedures performed, as well as data outside the health system — such as social media, purchases made using credit cards, census records, Internet search activity logs that contain valuable health information, and you’ll get a sense of how AI could transform patient care and diagnoses.”
With improved health outcomes arrive broader economic benefits, which may help drive interest in JWACU stock.
Jupiter Wellness Acquisition Potential
Invariably, if everything goes well with Jupiter Wellness Acquisition’s search for a target enterprise, an AI-centered healthcare firm offers tremendous potential due to its accretive nature. According to the California Health Care Foundation, “Health spending amounted to $11,172 per person, including $1,150 on average for out-of-pocket costs. Per person spending in the U.S. was double that of most other developed nations.”
Logically, superior healthcare services should help lower costs while providing longer-term economic benefits: there’s not much workers can do if their health outcomes become terminal.
However, investors should note that AI poses legitimate concerns for healthcare professionals. According to the American Medical Association, the use of AI protocols presents ethical dilemmas. For example, AI requires data to be effective; the more the merrier. But such data extraction runs counter to patient informed consent principles.
Also, leading this SPAC is Brian John, who also is a founder and CEO of Jupiter Wellness Inc. (NASDAQ: JUPW), a cannabidiol (CBD)-based medical therapeutics firm. Unfortunately, JUPW is one of the worst-performing securities this year, which may raise concerns about JWACU stock.
How to Buy Jupiter Wellness Acquisition IPO (JWACU) Stock
With the IPO date soon upon us, interested participants must acquire JWACU shares at the open, an easy process if you know how to buy stocks. If not, follow the steps below.
Step 1: Pick a brokerage.
Because any reputable brokerage will allow you to buy JWACU stock, you can narrow your list of best brokers to platforms that ideally suit your needs.
Step 2: Decide how many shares you want.
IPOs are risky, and SPAC mergers have become increasingly so. Therefore, mitigate your downside exposure with a balanced share count.
Step 3: Choose your order type.
Before trading, learn these market concepts.
- Bid: The buyer’s best offer for a stock.
- Ask: The seller’s lowest acceptable price.
- Spread: The difference between the bid-ask price, the spread indicates market risk as this is also the profit margin for market makers.
- Limit order: Buy or sell requests at a predetermined price, limit orders provide transparency but no execution guarantees.
- Market order: Market orders guarantee fulfillment but only at the current rate.
- Stop-loss order: Stop-loss orders automatically exit your position at either a predetermined price or anything lower.
- Stop-limit order: Stop-limit orders only leave positions at a specified price, but they also carry non-fulfillment risks.
Step 4: Execute your trade.
Follow these steps to execute a market order:
- Select your action type (buy or sell).
- Enter the shares you want to acquire (or sell).
- Hit the Buy (or Sell) button.
Follow the same sequence for limit orders (but include your execution price).
JWACU Restrictions for Retail Investors
Review the Financial Industry Regulatory Authority (FINRA) rules on restricted persons before participating in an IPO. Don’t engage if you have privileged information.
While pre-IPO shares of Jupiter Wellness Acquisition are not available, you can open an account with SoFi Invest if you’re interested in select public market offerings.
AI as the Future of Healthcare
Although the introduction of digitalized healthcare services may raise concerns, overall, AI has delivered undeniably superior outcomes for patients. Yet it’s no guarantee that Jupiter Wellness will complete a business combination in this arena, presenting both risks and opportunities for JWACU stock.