Signage for Prenetics, a Hong Kong-based biotechnology company, in the company’s laboratory in Hong Kong, China on Jan 26, 2018.

Anthony Kwan | Bloomberg | Getty Images

Hong Kong biotech company Prenetics is set to merge with Artisan Acquisition, a special purpose vehicle backed by Hong Kong billionaire Adrian Cheng, according to a source close to the deal.

The SPAC is already traded on the Nasdaq under the ticker ARTU.

SPACs are letterbox companies founded to raise money through an IPO – their sole purpose is to merge with an existing private company or to acquire it and go public. They bypass the traditional Wall Street IPO.

Prenetics is a diagnostic and genetic testing company with major offices in Hong Kong and the UK. Founded by serial entrepreneur Danny Yeung, it will be the first multi-billion dollar startup in Hong Kong to leave its unicorn status.

A technician processes a sample in a Prenetics laboratory in Hong Kong, China on January 26, 2018.

Anthony Kwan | Bloomberg | Getty Images

The transaction is expected to be completed by the end of this year. UBS, Citi, Credit Suisse and CICC are providing financial advisor to the potential de-SPAC transaction.

Artisan raised $ 339 million in the SPAC and has signed an additional $ 60 million forward purchase agreements with investment firm Aspex and PAG, a private asset manager for institutional investors, according to the source, who requested anonymity as that person was not allowed to discuss the information public.

Talks with other pipe investors should run with strong initial demand, the source said.

The company has grown significantly since its inception in 2014, with projected revenue expected to exceed $ 200 million in 2021, which is 400% year-over-year growth, according to the source.

Annual sales are expected to reach $ 600 million by 2025, the source said.