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Chamath Gets 2nd Deal of 2022 and SPAC IPO Market Shows Signs of Closing

DNAA is merging with Akili, SEAH approved with 55% redemptions, and multiple IPOs withdrawn as issuance has slowed materially.

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The SPAC market has been reeling, and we've been talking about how there are just too many SPACs in the market. Even though new deal activity was low at the end of 2021, the IPOs just kept on rolling in. The tone thus far has been decidedly different in January with just 22 priced thus far vs. 50+ each month from October - December 2021. There are still a few days left in January but the last month to print <30 SPAC IPOs was July when, presumably, capital markets are much slower. 

Just 22 IPOs this January vs 90+ last year as SPACs were just heating up

Just 22 IPOs this January vs 90+ last year as SPACs were just heating up

In addition, several issuers have been withdrawing their IPO requests with the latest coming from TCG Growth, Murphy Canyon, and CAVU Tech all pulling their pre-IPO registration statements. Low issuance, and sponsors cancelling IPO plans signals that the primary market will likely remain at limited issuance until sentiment improves and the SPAC market clears out a bit. 

Chamath Strikes Second SPAC Deal of 2022 with DNAA

Last week Chamath Palihapitiya announced his first SPAC deal in a year with DNAC taking ProKidney public. Today, amid a very quiet SPAC deal market, he announced his second one with Social Capital Suvretta Holdings I (DNAA) striking a $516M EV deal with Akili Interactive Labs

See the deal deck here. 

The deal includes a fully committed $162M PIPE from the likes of Suvretta, Apeiron, Temasek and others. DNAA shares traded up 1.9% and still trade at a decent discount to its NAV at $9.80. As a reminder, the Social Capital Suvretta line of SPACs all priced without warrants when they IPOed in June (imagine that in today's market). 

With 2 of the 4 Suvretta SPACs having announced deals that just leaves DNAB (Oncology) and DNAD (Immunology) to find targets. 

Elsewhere in SPACS

In a growing trend of cancelled deals, Omnichannel Acquisition (OCA) and Kin Insurance mutually agreed to terminate their business combination due to "market conditions". They were set to vote Feb-1. It's the second cancelled deal if the year and 11th since November. OCA warrants are tanking AH down ~30% to just $0.28. 

Sports Entertainment Acquisition Corp (SEAH) and Super Group shareholders approved their deal and the company will likely close 1/27 and trade as SGHC on Friday 1/28. Redemptions were a relatively low 55%, given the current climate. 

ACE Convergence Acquisition Corp (ACEV) shareholders agreed to extend the SPAC's deadline out till July-2022 to complete its merger with Tempo Automation, but 64% of the SPAC's shareholders elected to redeem

Sky Harbour Group Corporation (SKYH) began their first day of trading under its new ticker following its combination with Yellowstone Acquisition Corp (YSAC), and shares fell a little over 3% to close at $8.35. We recently spoke with CEO Tal Keinan on the podcast about the business

Satellogic (SATL) also completed their first day of trading following its merger with CF Acquisition Corp (CFV). The company also disclosed 90%+ in redemptions, and shares closed down nearly 12% at $8.10. 

Today's Price Action

Biggest Gainers

2.16% ~ $ 9.94 | FWAC - Fifth Wall Acquisition Corp. III (Pre-Deal)
1.87% ~ $ 9.80 | DNAA - Social Capital Suvretta Holdings Corp. I (Announced)
1.43% ~ $ 10.66 | GGPI - Gores Guggenheim, Inc (Announced)
1.32% ~ $ 10.01 | LGST - Semper Paratus Acquisition Corp (Pre-Deal)
1.14% ~ $ 9.80 | BGSX - Build Acquisition Corp. (Pre-Deal)
1.03% ~ $ 9.73 | PSPC - Post Holdings Partnering Corporation (Pre-Deal)
1.02% ~ $ 9.90 | MCAF - Mountain Crest Acquisition Corp. IV (Pre-Deal)
.88% ~ $ 10.31 | HUGS - USHG Acquisition Corp. (Announced)
.82% ~ $ 9.88 | MCAE - Mountain Crest Acquisition Corp. III (Pre-Deal)
.67% ~ $ 9.79 | PTIC - PropTech Investment Corporation II (Pre-Deal)
.62% ~ $ 9.81 | BHAC - Crixus BH3 Acquisition Corp. (Pre-Deal)
.59% ~ $ 69.39 | DWAC - Digital World Acquisition Corp. (Announced)
.57% ~ $ 9.95 | GSQD - G Squared Ascend I Inc. (Announced)
.51% ~ $ 9.77 | GLTA - Galata Acquisition Corp (Pre-Deal)
.51% ~ $ 9.80 | ARBG - Aequi Acquisition Corp (Pre-Deal)
.51% ~ $ 9.80 | CPAA - Conyers Park III Acquisition Corp. (Pre-Deal)
.51% ~ $ 9.82 | ACTD - ArcLight Clean Transition Corp. II (Announced)
.51% ~ $ 9.83 | DYNS - Dynamics Special Purpose Corp. (Announced)
.51% ~ $ 9.83 | BLSA - BCLS Acquisition Corp. (Pre-Deal)

Biggest Losers

-6.10% ~ $ 9.39 | ENNV - ECP Environmental Growth Opportunities Corp. (Announced)
-4.17% ~ $ 13.32 | VMAC - Vistas Media Acquisition Company Inc. (Announced)
-2.74% ~ $ 11.35 | CFVI - CF Acquisition Corp. VI (Announced)
-2.08% ~ $ 9.90 | MLAI - McLaren Technology Acquisition Corp. (Pre-Deal)
-1.82% ~ $ 9.70 | LCW - Learn CW Investment Corp (Pre-Deal)
-1.39% ~ $ 9.90 | GOGN - GoGreen Investments Corp (Pre-Deal)
-1.39% ~ $ 9.91 | CCAC - CITIC Capital Acquisition Corp (Announced)
-1.30% ~ $ 9.87 | PACI - PROOF Acquisition Corp I (Pre-Deal)
-1.10% ~ $ 9.90 | IOAC - Innovative International Acquisition Corp. (Pre-Deal)
-1.02% ~ $ 9.72 | ASAX - Astrea Acquisition Corp. (Announced)
-.98% ~ $ 9.82 | GMBT - Queen’s Gambit Growth Capital (Announced)
-.87% ~ $ 8.01 | SEAH - Sports Entertainment Acquisition Corp (Announced)
-.71% ~ $ 9.80 | ACAH - Atlantic Coastal Acquisition Corp. (Announced)
-.62% ~ $ 9.69 | CLRM - Clarim Acquisition Corp. (Pre-Deal)
-.60% ~ $ 9.86 | MTAC - MedTech Acquisition Corporation (Announced)
-.60% ~ $ 9.90 | AHPA - Avista Public Acquisition Corp. II (Pre-Deal)
-.52% ~ $ 9.65 | MTAL - Metals Acquisition Corp (Pre-Deal)
-.52% ~ $ 9.65 | XPAX - XPAC Acquisition Corp (Pre-Deal)
-.51% ~ $ 9.66 | RACB - Research Alliance Corp. II (Pre-Deal)
-.51% ~ $ 9.66 | POND - Angel Pond Holdings 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.)