ACON S2 (STWO) Taking ESS Public in $1.1B SPAC Deal

ACON S2 is taking ESS Tech, a manufacturer of long-duration iron flow batteries for commercial and utility-scale energy storage applications, public in a $1.1B SPAC deal.
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ACON S2 Acquisition Corp (STWO) announced this morning that it is taking ESS Tech ("ESS") public in a $1.1B SPAC deal. This is the only SPAC for sponsor ACON Investments and the team led by CEO Adam Kriger. The market's early response in pre-market is positive with a +2.54% jump.

See the full investor presentation here.

Kriger is an Executive Partner at ACON Investments which he joined in August 2017. He also has successful public company board experience. He's been on the board of Funco, Inc. (FNKO) since April 2017 which has seen 33% annualized stock growth over that time earning a A- performance rating from Boardroom Alpha.

ACON's stock and warrants have been tightly rangebound around NAV even during peak SPAC

ACON's stock and warrants have been tightly rangebound around NAV even during peak SPAC

ESS manufactures long-duration iron flow batteries for commercial and utility-scale energy storage applications. 

Typically Aggressive SPAC Revenue Projections?

Like many SPAC deals it has an aggressive revenue projections starting at $2M in 2021 and ramping to $3.5B in 2027. While that is only 6% of total addressable market according to their numbers, that will seem an aggressive ramp to many evaluating the deal.

Overly aggressive SPAC financial projections?

Overly aggressive SPAC financial projections?

Take Away

SPAC investors be glad to see two deals this morning, but it remains to be seen whether these will do more than show some early strength on initial excitement.

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(Disclaimers: this is not investment advice. The author may be long one or more stocks mentioned in this report.)