LCAP Rises on MSP Deal, ASPL Sees Huge Redemptions in Wheels Up Vote

ASPL approved its merger with Wheels Up, but is the latest SPAC to have large redemptions. LCAP rose on its announced deal with MSP Recovery
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Aspirational Consumer Lifestyle has High Redemptions in Vote Approval

Unsurprising that ASPL suffered large redemptions as the stock price being well below NAV had signaled that was likely to be the case. However, the $133.6M (56%) of share redemptions causes the remaining trust value to be below the previously agreed amount of $120M by ~$14M. Wheels Up subsequently agreed to waive that condition, ensuring a safe path towards merger completion. Expect Wheels Up to trade as UP tomorrow or 7/14. 

The other vote today, Rodgers Silicon Valley Acquisition (RSVA) also passed its vote, though we have yet to see redemptions. Wouldn't expect much there as the stock closed today at $21.84, well above NAV.  

Many more votes are on the horizon this week, including two more tomorrow, one of which (LCY) has already announced that there were no redemptions:

Jul 13 | $ 9.94 | AONE - one --> Markforged
Jul 13 | $ 11.92 | LCY - Landcadia Holdings III Inc --> The Hillman Group, Inc.
Jul 14 | $ 10.19 | GXGX - GX Acquisition Corp --> Celularity Inc.
Jul 14 | $ 9.74 | SBG - Sandbridge Acquisition Corporation --> OWLET BABY CARE INC.
Jul 14 | $ 9.99 | EMPW - Empower Ltd --> Holley
Jul 15 | $ 9.75 | NHIC - NewHold Investment Corporation --> Evolv Technology
Jul 15 | $ 10.00 | DCRB - Decarbonization Plus Acquisition Corp --> Hyzon Motors Inc.
Jul 16 | $ 10.22 | FGNA - FG New America Acquisition Corp --> OppFi

Lionheart Acquisition Corp II (LCAP), who this morning announced a deal to talk MSP Recovery public with a valuation of $32.6B w/ just a $230M SPAC trust rose +1.52% on the day to close at $10.04. The warrants surged over +104% to $2.23. In addition, the merger consideration offered an incentive to non-redeeming shareholders of ~1B warrants (yes, 1 billion) if they do not redeem their shares in conjunction with the merger. That equates to ~35 extra warrants per shareholder. Creativity is here as sponsors are facing large redemptions threatening the completion of some deals.

ICYMI: Achronix and ACE Convergence Acquisition Corp (ACEV) Terminate Merger Agreement

Originally announced in January of 2021, the proposed merger between Achronix and ACE Convergence Acquisition (ACEV) is now off. The two sides were "mutually agreed" and were apparently unable to meet closing conditions, including regulatory approvals.

Given the original 18-month deadline for the $230m SPAC, ACEV still has until January to make a deal, so they have plenty of time. They will have an option to extend if necessary as well. ACEV closed Friday at $9.94 and has largely been stuck right around NAV since it leveled off after peak SPAC early in the year.

ACEV closed down just 0.8% on the day, but is well below NAV at $9.86.  

Today's Price Action

Biggest Gainers

5.09% ~ $ 26.85 | CCIV - Churchill Capital Corp IV (Announced)
3.80% ~ $ 13.66 | TPGY - TPG Pace Beneficial Finance Corp (Announced)
2.49% ~ $ 11.92 | CMII - CM Life Sciences II Inc. (Announced)
2.05% ~ $ 9.95 | RXRA - RXR Acquisition Corp (Pre-Deal)
1.64% ~ $ 9.91 | XPDI - Power & Digital Infrastructure Acquisition Corp. (Pre-Deal)
1.52% ~ $ 10.04 | LCAP - Lionheart Acquisition Corporation II (Announced)
1.49% ~ $ 9.78 | TBSA - TB SA Acquisition Corp (Pre-Deal)
1.34% ~ $ 9.80 | FMIV - Forum Merger IV Corporation (Pre-Deal)
1.33% ~ $ 9.90 | PLMI - Plum Acquisition Corp. I (Pre-Deal)
1.31% ~ $ 11.60 | VACQ - Vector Acquisition Corp (Announced)
1.24% ~ $ 9.77 | DHHC - DiamondHead Holdings Corp. (Pre-Deal)
1.19% ~ $ 9.84 | CRZN - Corazon Capital V838 Monoceros Corp (Pre-Deal)
1.14% ~ $ 9.76 | VELO - Velocity Acquisition Corp (Pre-Deal)
1.14% ~ $ 9.80 | TIOA - Tio Tech A (Pre-Deal)
1.02% ~ $ 9.87 | FRWA - PWP Forward Acquisition Corp. I (Pre-Deal)
1.02% ~ $ 9.95 | MSDA - MSD Acquisition Corp. (Pre-Deal)

Biggest Losers

-6.50% ~ $ 10.72 | BLSA - BCLS Acquisition Corp. (Pre-Deal)
-4.12% ~ $ 14.42 | PSAC - Property Solutions Acquisition Corp (Announced)
-3.15% ~ $ 21.84 | RSVA - Rodgers Silicon Valley Acquisition Corp (Announced)
-2.76% ~ $ 13.39 | THCB - Tuscan Holdings Corp. (Announced)
-2.75% ~ $ 10.60 | ARYD - ARYA Sciences Acquisition Corp IV (Pre-Deal)
-2.50% ~ $ 9.75 | RAM - Aries I Acquisition Corp (Pre-Deal)
-2.36% ~ $ 13.23 | FST - FAST ACQ CP (Announced)
-2.35% ~ $ 9.75 | NHIC - NewHold Investment Corporation (Announced)
-2.07% ~ $ 11.36 | MUDS - Mudrick Capital Acquisition Corporation II (Announced)
-1.70% ~ $ 12.12 | TDAC - Trident Acquisitions Corp (Announced)
-1.69% ~ $ 11.62 | PDAC - Peridot Acquisition Corp (Announced)
-1.40% ~ $ 9.83 | FVT - Fortress Value Acquisition Corp. III (Pre-Deal)
-1.31% ~ $ 10.51 | KVSB - Khosla Ventures Acquisition Co. II (Announced)
-1.31% ~ $ 9.82 | SDAC - Sustainable Development Acquisition I Corp. (Pre-Deal)
-1.29% ~ $ 14.50 | GHVI - Gores Holdings VI Inc (Announced)
-1.26% ~ $ 24.23 | PCPC - Periphas Capital Partnering Corporation (Pre-Deal)
-1.15% ~ $ 17.16 | RICE - Rice Acquisition Corp. (Announced)
-1.13% ~ $ 9.61 | ADRA - Adara Acquisition Corp. (Pre-Deal)

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