Are SPACs Back? You tell Us!
We've been saying for the last few months that the SPAC market is getting healthier as the pace has slowed and market dynamics have become rational again. This has translated into clear SPAC plays around pre-deal SPACs below NAV for yield, looking for pops at ex-redemption/votes, and other opportunities for SPAC investors to play the market. The negativity from the media has also died down, in part because results have stabilized and in part because there is only so much interest and clicks negativity can drive.
But, let us know what YOU are thinking regarding SPACs. Take our twitter survey to help gauge the mood on main street:
Redemptions on the Rise?
Redemptions may be on the rise for SPACs near/sub-NAV. Last week investors saw them start to come in more and on Tuesday Thoma Bravo Advantage (TBA) shareholders approved its deal with ironSource, but over 18M shares, or > $180M cash, submitted for redemption. That number represents ~18% of TBA's trust.
Tuesday's 4 announced SPAC deals didn't see much action. Thimble Point Acquisition (THMA) had the biggest pop, but it was only 1.75% and it closed well below NAV at $9.87.
+1.75% | THMA - Thimble Point Acquisition Corp. --> Pear Therapeutics, Inc.
+0.10% | CCAC - CITIC Capital Acquisition Corp --> Quanergy Systems
+0.3% | BCYP - Big Cypress Acquisition Corp. --> SAB Biotherapeutics
-0.1% | DDMX - DD3 Acquisition Corp. II --> Codere Online
Northern Genesis Acquisition Corp. II (NGAB) taking Embark Trucks, Inc. Public
Embark Trucks, Inc. is an autonomous vehicle software-as-aservice company focused on the US trucking market. This is a space that is heating up with Amazon (AMZN) recently placing an order for 1,000 autonomous driving systems from and acquiring options to buy up to 20% of Plus.
A number of investors will likely be skeptical of the financials given the first year of financial forecasts starting at 2024 and seeing a massive jump from $867m in estimated 2024 revenue to $2.7B in 2025.
The press release also heavily promotes Elaine Chao, former Secretary of Transportation and Labor, joining Embark's board. It's unclear how much her ties to Washington will be of benefit to the company, but certainly as self-driving becomes more a regulatory issue and as government eventually adopts self-driving tech, having a strong advocate could be beneficial. But, for investors that prioritize in-depth operator/executor/technical expertise they won't be as immediately impressed by the appointment.
Coliseum Acquisition (MITA / U) debuts its $150M SPAC. It carries 1/3 warrants and is focused on acquisitions in the sports space. This is the first SAPC for the SC Holdings team.
June's SPAC Votes
Two more votes today for SPAC mergers. The FTAC Olympus (FTOC) / Payoneer should come through easily and with few, if any, redemptions given it is trading solidly above NAV -- closing at $10.26 on Tuesday.
Watch for redemptions for the Atrius (AACQ) / Origin Materials deal. On June 15th they announced that Apollo Global Management would invest up to $30m to help support the deal at closing.
Jun 23 | $ 10.26 | FTOC - FTAC Olympus Acquisition Corp --> Payoneer Inc.
Jun 23 | $ 9.39 | AACQ - Artius Acquisition Inc. --> Origin Materials
Jun 24 | $ 9.98 | FRX - Forest Road Acquisition Corp --> Beachbody, LLC
Jun 24 | $ 10.00 | FIII - Forum Merger III Corporation --> Electric Last Mile, Inc.
Jun 28 | $ 10.00 | IACA - ION Acquisition Corp 1 Ltd --> Taboola
Jun 29 | $ 9.99 | NSTB - Northern Star Investment Corp. II --> Apex Clearing Holdings
Jun 29 | $ 13.98 | CLII - Climate Change Crisis Real Impact I Acquisition Corp --> EVgo
Jun 29 | $ 9.99 | FCAC - Falcon Capital Acquisition Corp --> sharecare
Jun 29 | $ 9.98 | RACA - Therapeutics Acquisition Corp --> POINT Biopharma
Jun 30 | $ 10.00 | WPF - Foley Trasimene Acquisition Corp. --> Alight Solutions
Jun 30 | $ 11.25 | HOL - Holicity Inc --> Astra
Jun 30 | $ 10.05 | ALUS - Alussa Energy Acquisition Corp --> FREYR
Jun 30 | $ 11.23 | APXT - Apex Technology Acquisition Corporation --> AvePoint, Inc.
Aging SPACs & "Peak Deal"
We haven't talked about it a lot recently, but "Peak Deal" is coming as SPACs age towards their deadlines. Look for it to put a real crunch on later this year as there are increasingly significant number of SPACs over 1-year old. While most will have another year to complete a deal, competition for a limited set of great, public-company ready private firms will get intense.
Here are some of the older pre-deal SPACs at the moment:
$ 9.97 | 19 months | MCMJ - Merida Merger Corp. I
$ 9.99 | 19 months | CHPM - CHP Merger Corp.
$ 9.98 | 15 months | DFPH - DFP HEALTHC ACQ
$ 9.83 | 12 months | TREB - Trebia Acquisition Corp
$ 10.00 | 12 months | BRLI - Brilliant Acquisition Corporation
$ 9.79 | 11 months | CPSR - Capstar Special Purpose Acquisition Corp.
$ 9.80 | 11 months | HPX - HPX Corp
$ 9.78 | 11 months | ERES - East Resources Acquisition Company
$ 10.12 | 11 months | GRCY - Greencity Acquisition Corp
$ 9.78 | 11 months | ETAC - E.Merge Technology Acquisition Corp.
$ 9.84 | 11 months | PRPB - CC NEUBERGER PR
$ 10.39 | 10 months | HSAQ - Health Sciences Acquisitions Corporation 2
$ 9.77 | 10 months | GOAC - GO ACQUISITION
$ 9.79 | 10 months | RBAC - RedBall Acquisition Corp.
$ 9.87 | 10 months | LCAP - Lionheart Acquisition Corporation II
$ 9.86 | 10 months | BTAQ - BURGUNDY TC ACQ
More from Boardroom Alpha
More from Boardroom Alpha For ongoing tracking, analytics, and data on SPACs checkout Boardroom Alpha's SPAC Data and Analytics service.
- 4 Mergers Mostly Rise, Thoma Bravo Passes with Chunk of Redemptions
- SPACs Start Week Muted
- Will the Better SPAC Narrative Hold this Week?
- SPAC Wrap: Mixed Feelings
- CEO, CFO, and Director Moves
- DraftKings, Lordstown Reignite SPAC Criticisms
- Decarbonization Plus (DCRC) + Solid Power in $1.24B SPAC Deal
- RIDE Continues its Fall, Fortress II (FAII) Votes Tomorrow
- Lordstown (RIDE) CEO Steve Burns Resigns; Boxed + SVOK
- Gamestop's Big Moves; Director/Officer Moves w/o June 11
- De-SPACs Are Popping, Another eVTOL Merger
- Amid Positive SPAC Momentum, IPOs Returned Too
- The SPAC Tide is Turning Positive
- Less Angst in SPAC Land + Wallbox in a $1.5B SPAC Deal
- SPACs Rise, RIDE Plunges on Going Concern
- SPAC Narrative Changing: CLOV Surges in Pre-Market, CCIV Surged Monday
- VPC Impact Drops on Dave Deal, More SPAC Votes Ahead
- A Big Week for SPACs. Will the Narrative Continue to Improve?
- Ackman Rewrites the SPAC "Merger", De-SPACs are Heating Up
- 2 SPACs Vote Tomorrow amid June Merger Frenzy
- SPAC Narrative Changing with De-SPAC Success and New Chamath SPACs?
- Hot Start for SoFi, while MUDS Takes a Hit on AMC and Candy Digital News
- SPAC Activity Picks Up into Memorial Day, Remain Heavily Discounted
- IPOE Passes Vote as Chamath Pens Op-Ed, PACX Rises on Acorns Deal
- Chamath's IPOE Shareholders Vote Today on SoFi Merger; Acorns and eFFECTOR Deals
(Disclaimers: this is not investment advice. The author may be long one or more stocks mentioned in this report.)More from Boardroom Alpha