Jaws Acquisition Corp. (JWS) Shareholders Approve Cano Health Deal

Jaws Acquisition Corp. (NYSE:JWS) announced in an 8-K filing this afternoon that its shareholders approved its combination with Cano Health at a special meeting earlier today.

The deal was overwhelmingly approved with 75.1% of shares participating in the vote, and the parties expect the transaction to close tomorrow June 3. Shares and warrants of combined entity are expected to begin trading on the NYSE on June 4 under the symbols “CANO” and “CANO.WS”, respectively.

Jaws did not share redemption figures in its filing, but they are unlikely to be significant as its shares closed at $14.51 on May 28, the day of its redemption deadline. This deal along with Deerfield (NASDAQ:DFHT)’s combination with fellow Medicare Advantage-focused CareMax have both been warmly received as Deerfield also closed at $14.50 today.

The first SPAC deal with a Medicare Advantage player of the past year – Social Capital III’s merger with Clover Health (NASDAQ:CLOV) – has fared less well, generally trading below $10 since late February. But, its performance includes external factors including a short seller report and regulatory probes.

Jaws and Cano initially announced their $4.4 billion deal on November 12. Cano serves more than 103,000 Medicare Advantage patients through 564 primary care physicians in Florida, Texas, Nevada, and Puerto Rico.

Most measures on the shareholders’ ballot passed by wide margins but some governance proposals were more controversial than others with one receiving 37.9% of votes against. For a full list of measures and vote tallies, click HERE.

ADVISORS

• Moelis & Company is acting as financial advisor to Cano Health.
• Credit Suisse is serving as financial advisor and exclusive capital markets advisor to Cano Health. Credit Suisse is also serving as exclusive placement agent on the private offering.
• Goodwin Procter LLP is serving as legal counsel to Cano Health and Cravath Swaine & Moore LLP is serving as counsel to certain shareholders, including members of Company management.
• Kirkland & Ellis LLP is serving as legal counsel to Jaws Acquisition Corp.