SPAC Update, Decarbonization Plus II (DCRN) Taking Tritium Public, IPOE Vote

Another EV charger going public as DCRN strikes a $1.4B deal with Tritium. Post Holdings Partnering Corp (PSPC) priced a downsized $300M IPO. And, don't forget IPOE shareholders vote tomorrow.
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The average pre-deal SPAC is now trading at $9.80 -- a steep discount from NAV. The market has settled into a lull with some of the media noise around the SPAC bubble bursting quieting, activity slowly trickling along (a few S-1s here, an IPO there, a couple deals a week), and not much happening in prices when events do happen. 

Investors should expect the market to continue along in a similar manner for the near term while the confluence of the SEC, oversupply, and (perceived) bad deals/valuations continue to work through the system. Until then it would take some a few big events to shift the narrative and restart excitement in the market. 

On that note, all investors, SPAC or otherwise, will be watching as IPOE / SoFi goes to a vote tomorrow (May 27). The pitchforks have been out Chamath Palihapitiya lately, but with Virgin Galactic soaring the other day on execution news, a great de-SPAC performance from IPO / SoFi will surely have his supporters, and likely him, actively promoting SPACs once again.

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DCRN taking EV Charger Tritium Public

This morning Decarbonization Plus II (DCRN) announced a deal to take Tritium, a Brisbane-based developer and manufacturer of direct current (“DC”) fast chargers for electric vehicles (“EVs”), public in a $1.4b SPAC deal. DCRN's equity closed yesterday at $9.66 -- one of the deeper discounts for pre-deal SPACs actively searching -- and is up almost 2% to $9.85 in pre-market trading as of this writing. The deal has no PIPE and they currently have $403M in trust.

DCRN/Tritium financial forecast. Source: Investor presentation

DCRN/Tritium financial forecast. Source: Investor presentation

Investors can review the full investor presentation here.

This is the second announced deal for the Riverstone sponsor team from their four active SPACs. Their first, DCRB, is taking Hyzon public in a $2.1b deal. DCRB/Hyzon got caught up in "peak SPAC" as it went public in October 2020 and announced in February of 2021, with its price nearing $18 at its high. It is currently trading close to $10 which isn't an uncommon price point for SPACs with deals in the current market.

DCRB got caught up in "peak SPAC", but remains slightly above $10

DCRB got caught up in "peak SPAC", but remains slightly above $10

DCRB/Tritium will join 5 existing SPAC/de-SPACs in the charging space:

EV Charging SPACs with Announced Transactions
$ 11.12 | CLII - Climate Change Crisis Real Impact I Acquisition Corp -> EVgo
$ 9.94 | SNPR - Tortoise Acquisition Corp II -> Volta Industries, Inc.
$ 12.10 | TPGY - TPG Pace Beneficial Finance Corp -> EVBox Group

EV Charging SPACs that have De-SPAC'd:
$ 23.01 | SBE - Switchback Energy Acquisition Corporation -> ChargePoint, Inc.
$ 9.78 | NBAC - Newborn Acquisition Corp. -> Nuvve Holding Corp.

SPAC IPOs

Post Holdings Partnering Corp (PSPC/U) priced and will begin trading today. Their $300M is downsized from an initial $400M. The warrant coverage is also raised up to  1/3. PSPC is sponsored by Robert Vitale and Post Holding, Inc.  (POST) - Get Report and is targeting, of course, the consumer packaged goods space. 

Dynamics Special Purpose Corp (DYNS) also priced a $200M, no warrant SPAC that will begin trading today. It is the first SPAC for the sponsor team and is led by Omid Farokhzad, founder/CEO of Seer Inc (SEER) . DYNS is targeting healthcare, across value chain.

As we've discussed before, it takes some amount of bravery to IPO in today's SPAC market, but the reality is deals get done and everyone (except maybe the retail investor) will still get paid. Here's a look at May's IPOs -- almost all below NAV.

May 24 | $ 10.00 | FWAC - Fifth Wall Acquisition Corp. III
May 20 | $ 9.93 | GFOR - Graf Acquisition Corp. IV
May 18 | $ 9.98 | GIW - GigInternational1, Inc.
May 18 | $ 9.97 | RAM - Aries I Acquisition Corp
May 18 | $ 9.89 | SKYA - Skydeck Acquisition Corp.
May 17 | $ 9.93 | POND - Angel Pond Holdings Corp
May 17 | $ 10.09 | MCAE - Mountain Crest Acquisition Corp. III
May 17 | $ 10.00 | CPAR - Catalyst Partners Acquisition Corp.
May 14 | $ 9.99 | OSI - Osiris Acquisition Corp.
May 14 | $ 9.98 | ARTA - Artisan Acquisition Corp.
May 12 | $ 9.97 | ORIA - Orion Biotech Opportunities Corp.
May 07 | $ 10.08 | DKDCA - Data Knights Acquisition Corp.
May 04 | $ 10.00 | MAQC - Maquia Capital Acquisition Corporation
May 03 | $ 9.99 | VLAT - Valor Latitude Acquisition Corp.

SPAC Discounts for Wednesday

While at a pretty deep discount pre-announcement this morning, DCRN wasn't the cheapest SPAC out there. Here are some that are even deeper that investors can consider adding to their basket.

-4.10% ~ $ 9.59 | GXII - GX Acquisition Corp. II (Pre-Deal)
-3.90% ~ $ 9.61 | FLME - Flame Acquisition Corp. (Pre-Deal)
-3.80% ~ $ 9.62 | EVOJ - Evo Acquisition Corp. (Pre-Deal)
-3.80% ~ $ 9.62 | KAII - Kismet Acquisition Two Corp. (Pre-Deal)
-3.80% ~ $ 9.62 | KSIC - Kadem Sustainable Impact Corporation (Pre-Deal)
-3.80% ~ $ 9.62 | IGNY - Ignyte Acquisition Corp. (Pre-Deal)
-3.80% ~ $ 9.62 | CPTK - Crown PropTech Acquisitions (Pre-Deal)
-3.80% ~ $ 9.62 | SWET - Athlon Acquisition Corp. (Pre-Deal)
-3.70% ~ $ 9.63 | ISOS - Isos Acquisition Corp. (Pre-Deal)
-3.70% ~ $ 9.63 | GAMC - Golden Arrow Merger Corp. (Pre-Deal)
-3.70% ~ $ 9.63 | MBAC - M3-Brigade Acquisition II Corp (Pre-Deal)
-3.70% ~ $ 9.63 | ADER - 26 Capital Acquisition Corp (Pre-Deal)
-3.65% ~ $ 9.64 | NBST - Newbury Street Acquisition Corporation (Pre-Deal)
-3.63% ~ $ 9.64 | GHAC - Gaming & Hospitality Acquisition Corp. (Pre-Deal)
-3.60% ~ $ 9.64 | NRAC - Noble Rock Acquisition Corporation (Pre-Deal)

Wednesday's SPAC Movers

Mixed results in the SPAC market on Wednesday as is the trend of late. 

Largest SPAC Gainers
7.96% ~ $ 14.64 | RSVA - Rodgers Silicon Valley Acquisition Corp (Announced)
5.55% ~ $ 11.79 | PSAC - Property Solutions Acquisition Corp (Announced)
5.05% ~ $ 14.36 | GHVI - Gores Holdings VI Inc (Announced)
5.02% ~ $ 15.89 | RICE - Rice Acquisition Corp. (Announced)
4.54% ~ $ 20.28 | CCIV - Churchill Capital Corp IV (Announced)
3.58% ~ $ 12.05 | CMII - CM Life Sciences II Inc. (Announced)
3.00% ~ $ 12.35 | CMLF - CM Life Sciences Inc (Announced)
2.89% ~ $ 12.44 | FSRV - FinServ Acquisition Corp (Announced)
2.75% ~ $ 13.09 | MUDS - Mudrick Capital Acquisition Corporation II (Announced)
2.27% ~ $ 9.91 | LEGO - LEGATO MERGER CORP. (Announced)
2.19% ~ $ 10.27 | ARYA - Arya Sciences Acquisition Corp III (Announced)
2.06% ~ $ 13.11 | DFHT - Deerfield Healthcare Technology Acquisitions Corp. (Announced)
2.02% ~ $ 20.18 | IPOE - Social Capital Hedosophia Holdings Corp V (Announced)
1.93% ~ $ 10.04 | WALD - Waldencast Acquisition Corp. (Pre-Deal)
1.88% ~ $ 16.30 | ACTC - ArcLight Clean Transition Corp (Announced)
1.70% ~ $ 11.19 | BCTG - BCTG Acquisition Corp. (Announced)
1.55% ~ $ 10.49 | IPOD - Social Capital Hedosophia Holdings Corp IV (Pre-Deal)
1.41% ~ $ 10.09 | FVAM - 501 ACQ CORP (Pre-Deal)
1.34% ~ $ 10.40 | ARYD - ARYA Sciences Acquisition Corp IV (Pre-Deal)
1.33% ~ $ 9.93 | CLAA - Colonnade Acquisition Corp. II (Pre-Deal)

Largest SPAC Decliners
-4.09% ~ $ 9.61 | FLME - Flame Acquisition Corp. (Pre-Deal)
-2.40% ~ $ 10.17 | SRAC - Stable Road Acquisition Corp. (Announced)
-2.29% ~ $ 9.83 | ACTDU - ArcLight Clean Transition Corp. II (Pre-Deal)
-2.18% ~ $ 9.88 | CFFE - CF Acquisition Corp. VIII (Pre-Deal)
-2.05% ~ $ 10.50 | FWAA - Fifth Wall Acquisition Corp. I (Announced)
-1.87% ~ $ 9.99 | IVAN - Ivanhoe Capital Acquisition Corp (Pre-Deal)
-1.85% ~ $ 11.12 | CLII - Climate Change Crisis Real Impact I Acquisition Corp (Announced)
-1.69% ~ $ 12.21 | BOWX - BowX Acquisition Corp (Announced)
-1.63% ~ $ 9.67 | ANZU - Anzu Special Acquisition Corp I (Pre-Deal)
-1.43% ~ $ 24.84 | PSTH - Pershing Square Tontine Holdings (Pre-Deal)
-1.29% ~ $ 9.75 | PTIC - PropTech Investment Corporation II (Pre-Deal)
-1.13% ~ $ 9.63 | MBAC - M3-Brigade Acquisition II Corp (Pre-Deal)
-1.10% ~ $ 9.89 | PRPC - CC Neuberger Principal Holdings III (Pre-Deal)
-1.01% ~ $ 9.80 | ATAQ - Altimar Acquisition Corp. III (Pre-Deal)
-.96% ~ $ 9.64 | GHAC - Gaming & Hospitality Acquisition Corp. (Pre-Deal)
-.92% ~ $ 9.70 | FCAX - Fortress Capital Acquisition Corp (Pre-Deal)
-.91% ~ $ 9.77 | NSTD - Northern Star Investment Corp. IV (Pre-Deal)
-.90% ~ $ 9.90 | SRSA - Sarissa Capital Acquisition Corp (Pre-Deal)
-.88% ~ $ 10.13 | PACE - TPG Pace Tech Opportunities Corp (Announced)
-.82% ~ $ 9.68 | VOSO - Virtuoso 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.)