Yesterday's SPAC deal announcements were met with a tepid response by the market. D8 (DEH) was only up 0.9% to $10.07 on news of its deal to merge with Vicarious Surgical and Consonance-HFW Acquisition Corp (CHFW) traded down -0.3% and remains below NAV at $9.85. Both deals are for pre-revenue, speculative healthcare plays though so SPAC market watchers won't be overly surprised by the result. Watch both for news regarding execution as the vote dates get closer though -- they have every incentive to announce great news.
As a check-in on announced deals, here is a quick list of deals announced since mid-March:
(announce date | premium/discount to $10 | SPAC)
Apr 15 | -1.5% ~ $ 9.85 | CHFW - Consonance-HFW Acquisition Corp
Apr 15 | .7% ~ $ 10.07 | DEH - D8 Holdings Corp.
Apr 14 | 28.4% ~ $ 12.84 | BCTG - BCTG Acquisition Corp.
Apr 14 | .6% ~ $ 10.06 | ROCC - Roth CH Acquisition II Co.
Apr 13 | 35.1% ~ $ 13.51 | AGC - ALTIMETER GROWTH CORP
Apr 08 | -1.2% ~ $ 9.88 | TWCT - TWC Tech Holdings II Corp
Apr 08 | 48.2% ~ $ 14.82 | RICE - Rice Acquisition Corp.
Apr 07 | -.5% ~ $ 9.95 | CAHC - CA Healthcare Acquisition Corp.
Apr 07 | -.5% ~ $ 9.95 | MCAD - Mountain Crest Acquisition Corp. II
Apr 06 | -.7% ~ $ 9.93 | ROT - Rotor Acquisition Corp
Apr 06 | 39.0% ~ $ 13.90 | MUDS - Mudrick Capital Acquisition Corporation II
Mar 31 | .6% ~ $ 10.06 | LATN - Union Acquisition Corp. II
Mar 30 | .0% ~ $ 10.00 | QELL - Qell Acquisition Corp
Mar 29 | .6% ~ $ 10.06 | AJAX - Ajax I
Mar 26 | .0% ~ $ 10.00 | SV - Spring Valley Acquisition Corp
Mar 25 | 1.8% ~ $ 10.18 | GNPK - Genesis Park Acquisition Corp
Mar 22 | 1.9% ~ $ 10.19 | SPFR - Jaws Spitfire Acquisition Corporation
Mar 22 | -1.0% ~ $ 9.90 | MLAC - Malacca Straits Acquisition Company Limited
Mar 22 | 1.5% ~ $ 10.15 | CHAQ - Chardan Healthcare Acquisition 2 Corp.
Mar 21 | 2.0% ~ $ 10.20 | TBA - Thoma Bravo Advantage
Mar 19 | 1.0% ~ $ 10.10 | SCPE - SC Health Corporation
Mar 18 | .3% ~ $ 10.03 | ITAC - Industrial Tech Acquisitions Inc
Mar 18 | -.2% ~ $ 9.98 | SPNV - Supernova Partners Acquisition Company Inc
Mar 16 | 23.9% ~ $ 12.39 | FTCV - FinTech Acquisition Corp. V
Mar 15 | -.1% ~ $ 9.99 | RACA - Therapeutics Acquisition Corp
Mar 15 | -.8% ~ $ 9.92 | DFNS - LGL Systems Acquisition Corp
Mar 15 | -.3% ~ $ 9.97 | GNRS - GREENROSE ACQUISITION CORP
Nikola (NKLA) Back to $10 --> Get Ready for More Short Seller Reports
For those watching de-SPACs, you'll have noted that NKLA is now back almost to $10 after closing down -9.53% to $10.63. It's been an incredible journey for NKLA investors and the company itself. What it does do is provide a big data point for SPAC doomsayers regarding the quality of the deals and companies being de-SPAC'd.
SPAC investors should brace for what will likely be a consistent and challenging rally of short sellers as SPACs go through the de-SPAC process. We saw another one yesterday with Scorpion Capital's scathing reporting on QuantumScape (QS) which, to date, has been one of the most successful de-SPAC stories. Investors who bought at the IPO of the SPAC, Kensington Acquisition (KCAC), are up +300%. Scorpion Capital's short seller report sent shares tumbling over 12% to close at $35.85.
It remains to be seen what will happen in QuantumScape's particular case -- will it be the next Nikola or will it emerge triumphant -- but, what is clear is there are very real reasons why de-SPAC companies setup as prime targets for short sellers. SPACs typically put forward very aggressive financials, boast incredible technology, have prominent promoters, and have the handcuffs come off for early investors post de-SPAC.
SPAC investors that are looking long-term value need to look very closely at the teams / sponsors behind each SPAC deal and decide if they are believable long-term investors that will ride along with them.
Deal Rumor: D & Z Media Acquisition / Simplifi
Bloomberg reported that D & Z Media Acquisition (DNZ) may take online advertising company Simplifi public. DNZ, co-sponsored by ICE, raised $287.5M in its SPAC IPO back in January. CEO Betty Liu is an experienced media executive and former Vice Chair of the NYSE.
DNZ's prospectus stated that the company intended to seek a target "related to media, education technology (“ed”), and other related industries." Reports say the deal may be valued ~$1.5B. DNZ's stock was up slightly 0.6% yesterday, but remains below NAV at $9.96.
Best SPAC Stock Ideas for Friday
Buy the Dip? Yesterday's Biggest SPAC Decliners
-7.41% ~ $ 20.12 | CCIV - Churchill Capital Corp IV (Announced)
-6.85% ~ $ 12.37 | VIH - VPC Impact Acquisition Holdings (Announced)
-6.40% ~ $ 10.83 | THCB - Tuscan Holdings Corp. (Announced)
-6.18% ~ $ 13.51 | AGC - ALTIMETER GROWTH CORP (Announced)
-6.00% ~ $ 18.02 | SSPK - Silver Spike Acquisition Corp. (Announced)
-4.69% ~ $ 12.18 | TDAC - Trident Acquisitions Corp (Announced)
-4.68% ~ $ 10.19 | SPFR - Jaws Spitfire Acquisition Corporation (Announced)
-4.51% ~ $ 15.45 | NGA - NORTHERN GN ACQ (Announced)
-3.97% ~ $ 10.15 | HOL - Holicity Inc (Announced)
-3.95% ~ $ 12.39 | FTCV - FinTech Acquisition Corp. V (Announced)
-3.81% ~ $ 11.62 | CLII - Climate Change Crisis Real Impact I Acquisition Corp (Announced)
-3.32% ~ $ 10.78 | CAPA - HighCape Capital Acquisition Corp (Announced)
-3.08% ~ $ 13.55 | CMLF - CM Life Sciences Inc (Announced)
-3.08% ~ $ 9.77 | HCII - HUDSON EXECUTIVE INVESTMENT CORP. II (Pre-Deal)
Buy the Dip? SPACs Most off their Highs (units)
** SPACs with Announced Deals **
-67.6% ~ $ 22.03 | CCIV - Churchill Capital Corp IV
-64.0% ~ $ 11.52 | SRAC - Stable Road Acquisition Corp.
-62.9% ~ $ 13.56 | THCB - Tuscan Holdings Corp.
-56.2% ~ $ 17.96 | NGA - NORTHERN GN ACQ
-55.4% ~ $ 11.55 | CAPA - HighCape Capital Acquisition Corp
-53.1% ~ $ 10.75 | HOL - Holicity Inc
-51.5% ~ $ 16.52 | TPGY - TPG Pace Beneficial Finance Corp
-50.7% ~ $ 12.65 | CLII - Climate Change Crisis Real Impact I Acquisition Corp
-48.8% ~ $ 15.19 | CMLF - CM Life Sciences Inc
-48.7% ~ $ 45.64 | BRPA - Big Rock Partners Acquisition Corp
** Pre-Deal SPACs **
-62.0% ~ $ 10.07 | ENPC - Executive Network Partnering Corp
-40.4% ~ $ 11.53 | BTWN - Bridgetown Holdings Ltd
-40.2% ~ $ 11.50 | IPOD - Social Capital Hedosophia Holdings Corp IV
-35.7% ~ $ 11.10 | IPOF - Social Capital Hedosophia Holdings Corp VI
-35.0% ~ $ 10.40 | THCA - Tuscan Holdings Corp. II
-34.7% ~ $ 10.61 | ZNTE - Zanite Acquisition Corp.
-32.3% ~ $ 10.61 | ALTU - Altitude Acquisition Corp.
-30.8% ~ $ 11.11 | HAAC - Health Assurance Acquisition Corp
-30.4% ~ $ 10.42 | PIPP - Pine Island Acquisition Corp
-29.1% ~ $ 11.65 | LEAP - Ribbit LEAP Ltd
Biggest SPAC Stock Discounts (discount ~ price | SPAC)
-3.2% ~ $ 9.68 | AGAC - African Gold Acquisition Corporation (Pre-Deal)
-2.6% ~ $ 9.74 | KAII - Kismet Acquisition Two Corp. (Pre-Deal)
-2.6% ~ $ 9.74 | OSTR - Oyster Enterprises Acquisition Corp. (Pre-Deal)
-2.5% ~ $ 9.75 | CFVI - CF Acquisition Corp. VI (Pre-Deal)
-2.5% ~ $ 9.75 | PUCK - Goal Acquisitions Corp. (Pre-Deal)
-2.3% ~ $ 9.77 | ASAX - Astrea Acquisition Corp. (Pre-Deal)
-2.3% ~ $ 9.77 | RCLF - Rosecliff Acquisition Corp I (Pre-Deal)
-2.3% ~ $ 9.77 | GIGG - GigCapital4, Inc. (Pre-Deal)
-2.3% ~ $ 9.77 | HCII - HUDSON EXECUTIVE INVESTMENT CORP. II (Pre-Deal)
-2.0% ~ $ 9.80 | OEPW - One Equity Partners Open Water I Corp. (Pre-Deal)
-2.0% ~ $ 9.80 | JCIC - Jack Creek Investment Corp. (Pre-Deal)
-2.0% ~ $ 9.80 | FINM - Marlin Technology Corp (Pre-Deal)
-2.0% ~ $ 9.80 | GHAC - Gaming & Hospitality Acquisition Corp. (Pre-Deal)
-2.0% ~ $ 9.80 | ITQ - Itiquira Acquisition Corp. (Pre-Deal)
-2.0% ~ $ 9.80 | TLGA - TLG Acquisition One Corp. (Pre-Deal)
Ready for a Dip? SPAC Stocks the Most off Their Lows
347% ~ $ 45.64 | BRPA - Big Rock Partners Acquisition Corp
220% ~ $ 31.84 | STPK - Star Peak Energy Transition Corp
125% ~ $ 22.03 | CCIV - Churchill Capital Corp IV
124% ~ $ 22.30 | SSPK - Silver Spike Acquisition Corp.
120% ~ $ 22.32 | DMYD - dMY Technology Group, Inc. II
81% ~ $ 18.50 | ACTC - ArcLight Clean Transition Corp
80% ~ $ 17.96 | NGA - NORTHERN GN ACQ
68% ~ $ 17.83 | RICE - Rice Acquisition Corp.
62% ~ $ 17.45 | RSVA - Rodgers Silicon Valley Acquisition Corp
61% ~ $ 17.50 | IPOE - Social Capital Hedosophia Holdings Corp V
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