Dueling SPAC Narratives

Don't expect the noise around Draftkings and Lordstown to derail the improved SPAC narrative. Stronger IPOs, smooth votes, and more S-1 activity all point to a healthier SPAC market.
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The short seller report from Hindenburg Research on DraftKings (DKNG) and Lordstown's (RIDE) issues reignited SPAC criticisms from some, but we don't agree and don't think it will dent the current improved narrative.

However, it was disappointing for SPAC investors to see Decarbonization Plus Acquisition Corporation III (DCRC) drop 14% on its deal announcement with Solid Power. However, they held above NAV closing at $10.45. This should serve as another reminder for SPAC investors that buying into a pre-deal SPAC well above NAV exposes them to a lot of downside risk. Fortress Value Acquisition Corp. II (FAII) also fell 2% as it held its shareholder vote with ATI Physical Therapy, we have yet to see the results/redemptions. 

A couple new SPACs will begin trading today: 

  • Rice Acquisition Corp. II (RONI/U) will start trading its upsized $300M SPAC that carries 1/4 warrants and will focus on sustainability. This is the second SPAC for the sponsor with the first, RICE, trading at $17.00 on a deal with Aria Energy & Achaea Energy.
  • Zimmer Partners is bringing its first SPAC to market today. Zimmer Energy Transition (ZTAQ/U) is a $300M SPAC with 1/3 warrants that is targeting the energy sector. 

June's SPAC IPOs are mostly holding around the $10 NAV which is another sign of a more positive market. Those with several days of trading behind them:

Jun 10 | $ 10.10 | HCNE - Jaws Hurricane Acquisition Corporation
Jun 10 | $ 10.01 | LAAA - Lakeshore Acquisition I Corp.
Jun 10 | $ 10.00 | LITT - Logistics Innovation Technologies Corp.
Jun 09 | $ 9.99 | SMIH - Summit Healthcare Acquisition Corp.
Jun 09 | $ 9.91 | CLBR - Colombier Acquisition Corp.
Jun 09 | $ 9.97 | ISAA - Iron Spark I Inc.
Jun 08 | $ 9.95 | GACQ - Global Consumer Acquisition Corp.
Jun 07 | $ 10.03 | SPK - SPK Acquisition Corp.

A lot of S-1 amendments have hit in the last few days as well -- roadshows could be heating up:

Jun 16 | 8i Acquisition 2 Corp.
Jun 16 | Beard Energy Transition Acquisition Corp.
Jun 15 | 10X Capital Venture Acquisition Corp. III
Jun 15 | CEA Space Partners I Corp.
Jun 15 | Elliott Opportunity II Corp.
Jun 15 | Software Acquisition Group Inc. III
Jun 15 | Advancit Acquisition Corp. I
Jun 15 | Schultze Special Purpose Acquisition Corp. II
Jun 14 | 10X Capital Venture Acquisition Corp. II
Jun 14 | AMCI Acquisition Corp. II
Jun 14 | Insurity Capital, Inc.
Jun 14 | TechStackery, Inc.
Jun 14 | Vital Human Capital, Inc.
Jun 14 | Industrial Human Capital, Inc.
Jun 14 | TCG Growth Opportunities Corp.
Jun 14 | FinTech Acquisition Corp. VI

In our view it would be too soon for the SPAC IPO flow to heat up materially given that there are still over 420 pre-deal SPACs out there. June has been, and will continue to be, a big month for de-SPACs, but it hasn't put much of a dent in the backlog given the trickle of IPOs. The market still needs to work through another big chunk of existing SPACs before more come in.

June SPAC Votes

Today, Crescent Acquisition Corp (CRSA) shareholders will vote on the LiveVox deal. That will leave another 16 votes remaining in June. 

Jun 16 | $ 10.02 | CRSA - Crescent Acquisition Corp --> LiveVox TopCo, LLC
Jun 17 | $ 10.00 | ACAC - Acies Acquisition Corp --> PlayStudios, Inc.
Jun 17 | $ 9.86 | HEC - Hudson Executive Investment Corp --> Talkspace
Jun 22 | $ 10.13 | TBA - Thoma Bravo Advantage --> ironSource
Jun 22 | $ 12.50 | FTIV - FinTech Acquisition Corp. IV --> Perella Weinberg Partners LLC
Jun 23 | $ 10.10 | FTOC - FTAC Olympus Acquisition Corp --> Payoneer Inc.
Jun 23 | $ 9.98 | AACQ - Artius Acquisition Inc. --> Origin Materials
Jun 24 | $ 10.26 | FRX - Forest Road Acquisition Corp --> Beachbody, LLC
Jun 24 | $ 10.02 | FIII - Forum Merger III Corporation --> Electric Last Mile, Inc.
Jun 28 | $ 10.77 | IACA - ION Acquisition Corp 1 Ltd --> Taboola
Jun 29 | $ 13.68 | CLII - Climate Change Crisis Real Impact I Acquisition Corp --> EVgo
Jun 29 | $ 10.01 | FCAC - Falcon Capital Acquisition Corp --> sharecare
Jun 29 | $ 10.28 | RACA - Therapeutics Acquisition Corp --> POINT Biopharma
Jun 30 | $ 10.46 | WPF - Foley Trasimene Acquisition Corp. --> Alight Solutions
Jun 30 | $ 10.97 | HOL - Holicity Inc --> Astra
Jun 30 | $ 10.09 | ALUS - Alussa Energy Acquisition Corp --> FREYR
Jun 30 | $ 11.63 | APXT - Apex Technology Acquisition Corporation --> AvePoint, Inc.

Tuesday's Biggest SPAC Movers

SPAC investors will need to keep watching for price action in SPACs with announced deals as that is where the big volatility is happening.  

Biggest Gainers
6.56% ~ $ 14.29 | LACQ - Leisure Acquisition Corp. (Announced)
5.42% ~ $ 19.65 | RSVA - Rodgers Silicon Valley Acquisition Corp (Announced)
4.11% ~ $ 11.40 | BCTG - BCTG Acquisition Corp. (Announced)
3.85% ~ $ 17.00 | RICE - Rice Acquisition Corp. (Announced)
2.49% ~ $ 11.96 | LCY - Landcadia Holdings III Inc (Announced)
1.94% ~ $ 10.00 | OMEG - Omega Alpha SPAC (Pre-Deal)
1.91% ~ $ 10.14 | NGC - Northern Genesis Acquisition Corp. III (Pre-Deal)
1.77% ~ $ 9.77 | RKTA - Rocket Internet Growth Opportunities Corp. (Pre-Deal)
1.27% ~ $ 10.35 | VACQ - Vector Acquisition Corp (Announced)
1.13% ~ $ 9.88 | TIOA - Tio Tech A (Pre-Deal)
1.08% ~ $ 9.86 | ATVC - Tribe Capital Growth Corp I (Pre-Deal)
.95% ~ $ 13.81 | CLII - Climate Change Crisis Real Impact I Acquisition Corp (Announced)
.83% ~ $ 9.73 | DHCA - DHC Acquisition Corp (Pre-Deal)
.82% ~ $ 9.79 | HLAH - Hamilton Lane Alliance Holdings I, Inc. (Pre-Deal)
.80% ~ $ 10.10 | DGNU - Dragoneer Growth Opportunities Corp. III (Pre-Deal)
.80% ~ $ 10.14 | TCVA - TCV Acquisition Corp. (Pre-Deal)
.79% ~ $ 10.15 | FACA - Figure Acquisition Corp. I (Pre-Deal)
.71% ~ $ 9.90 | JYAC - Jiya Acquisition Corp. (Pre-Deal)

Biggest Losers-13.56% ~ $ 10.45 | DCRC - Decarbonization Plus Acquisition Corporation III (Announced)
-7.15% ~ $ 10.65 | VGAC - VG Acquisition Corp (Announced)
-6.53% ~ $ 11.74 | CMLF - CM Life Sciences Inc (Announced)
-6.26% ~ $ 22.61 | CCIV - Churchill Capital Corp IV (Announced)
-3.51% ~ $ 14.85 | GHVI - Gores Holdings VI Inc (Announced)
-2.82% ~ $ 12.76 | THCB - Tuscan Holdings Corp. (Announced)
-2.73% ~ $ 10.67 | HOL - Holicity Inc (Announced)
-2.60% ~ $ 11.63 | MUDS - Mudrick Capital Acquisition Corporation II (Announced)
-2.44% ~ $ 10.39 | AHAC - Alpha Healthcare Acquisition Corp (Announced)
-2.28% ~ $ 9.84 | SRSA - Sarissa Capital Acquisition Corp (Pre-Deal)
-2.24% ~ $ 10.03 | FRX - Forest Road Acquisition Corp (Announced)
-2.23% ~ $ 10.53 | IACA - ION Acquisition Corp 1 Ltd (Announced)
-2.11% ~ $ 9.74 | FAII - Fortress Value Acquisition Corp. II (Announced)
-2.06% ~ $ 11.39 | APXT - Apex Technology Acquisition Corporation (Announced)
-2.01% ~ $ 10.25 | WPF - Foley Trasimene Acquisition Corp. (Announced)
-1.96% ~ $ 10.50 | DCRB - Decarbonization Plus Acquisition Corp (Announced)
-1.96% ~ $ 10.53 | LEAP - Ribbit LEAP Ltd (Pre-Deal)
-1.90% ~ $ 9.81 | ACAC - Acies Acquisition Corp (Announced)
-1.81% ~ $ 9.77 | ACQR - Independence Holdings Corp (Pre-Deal)
-1.73% ~ $ 12.53 | FST - FAST ACQ CP (Announced)

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