CBRE Picks Altus Power, Ivanhoe Picks SES, and ASPL and LCAP Red Flags

More SPAC deals with CBRE (CBAH) taking Altus Power public and Ivanhoe (IVAN) picking SES, but SPAC red flags just won't go away and sponsors aren't helping.
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While the overall narrative feels better as we work through the SPAC summer, the average pre-deal SPAC is now trading at $9.81. Much of the issue remains the oversupply of SPACs and the refusal of sponsors to really take a pause and let the market clear out. However, there remains a substantial undercurrent of concern around SPAC vehicles broadly. As we'll discuss a little more below, under the surface there can be a lot happening that is tilted in the favor of sponsors and banks -- those most incentivized to get deals done -- versus the average SPAC investor.

CBRE Acquisition (CBAH) is taking Altus Power public in a SPAC deal valuing the combined company at a pro forma equity value of $1.6B. The deal includes a fully-committed $275M pipe anchored by CBRE Group. Overall the deal is expected to delivery almost $700M in new cash to the company's balance sheet. 

This is the first SPAC deal for CBRE which is one of the world's largest commercial real estate companies. CBRE Group is up 44% year to date and it will be interesting to see how the deal impacts its stock and CBAH. CBAH ended Monday's session well below NAV at $9.85 but is up to $9.99 in premarket on the news.

Ivanhoe Capital Acquisition Corp (IVAN) is taking SES Holdings (an EV battery maker) public in a deal valued at $2.67B. The $200M PIPE includes General Motors, Kia, Hyundai and SAIC. Profitability is a long way off with the deal deck showing profits in 2026. Bloomberg had this rumored late on Monday, but it became official this morning.

Source: Company's deal deck

Source: Company's deal deck

Aspirational Consumer Lifestyle (ASPL) shareholders met yesterday and approved their deal with Wheels Up. Expect Wheels Up to trade as UP Tuesday or Wednesday the 14th. What's interesting, and a little scary for SPAC investors, is that 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. 

The problem here for SPAC investors is that they predicated their investment on a clear condition and the parties involved waived it without any prior notice. The result is effectively that the $10 redemption backstop became useless to them as behind closed doors the deal changed. This is simply bad practice and should rightly make investors wary of investing in this sponsor's SPACs again. 

Speaking of red flags, see yesterday's wrap for more on the Lionheart Acquisition Corp II (LCAP) merger with MSP Recovery and its unusual deal structure. In the face of rising redemptions for deals without a lot of support, it is offering an incredible ~1B warrants to shareholders who end up not redeeming. Andrew Walker at Rangeley Capital is raising some red flags beyond just the structure. 

What's clear in SPAC world is that underneath a seemingly relatively smooth surface there are a lot of things happening out of sight of most investors, or just far enough to the side to not be notice, that could give many pause. 

Whether any of these things will rise to a level that ultimately derails the market is still a question. For now, most investors have a certain level of risk priced into SPACs and seem willing to take it on. And, the biggest worry for many remains sponsors who are seemingly unwilling to take a meaningful pause on IPOs to let the market and oversupply clear out.

July SPAC Merger Votes

Two more SPAC merger votes today with AONE - one --> Markforged and LCY - Landcadia Holdings III Inc --> The Hillman Group, Inc. both going to shareholders. The next big set of redemptions is likely to be for the July 14th vote by Sandbridge Acquisition Corporation (SBG) shareholders who are voting on the OWLET BABY CARE INC. deal. Following that, watch the NewHold Investment Corporation (NHIC) vote on the 15th. Both deals are trading deeply under NAV at $9.74 and $9.75 respectively as of Monday's close.

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
Jul 19 | $ 10.22 | ANDA - Andina Acquisition Corp. III --> Stryve Foods, LLC
Jul 20 | $ 9.98 | RAAC - Revolution Acceleration Acquisition Corp --> Berkshire Grey
Jul 20 | $ 14.50 | GHVI - Gores Holdings VI Inc --> Matterport, Inc.
Jul 20 | $ 14.42 | PSAC - Property Solutions Acquisition Corp --> Faraday Future
Jul 20 | $ 9.97 | ACND - Ascendant Digital Acquisition Corp --> Beacon Street Group
Jul 20 | $ 9.97 | TWND - Tailwind Acquisition Corp --> QOMPLX, Inc.
Jul 21 | $ 13.39 | THCB - Tuscan Holdings Corp. --> Microvast, Inc.
Jul 21 | $ 9.98 | VCVC - 10X Capital Venture Acquisition Corp --> REE Automotive Ltd.
Jul 21 | $ 12.74 | CMLF - CM Life Sciences Inc --> Sema4
Jul 22 | $ 26.85 | CCIV - Churchill Capital Corp IV --> Lucid Motors
Jul 27 | $ 9.97 | CAP - Capitol Investment Corp V --> States Title Holding, Inc.
Jul 27 | $ 9.96 | ROCC - Roth CH Acquisition II Co. --> Reservoir Holdings, Inc.
Jul 28 | $ 9.99 | NEBC - Nebula Caravel Acquisition Corporation --> Rover
Jul 29 | $ 9.98 | DGNR - Dragoneer Growth Opportunities Corp --> CCC Information Services Inc.
Jul 29 | $ 9.96 | RTPZ - Reinvent Technology Partners Z --> Hippo Enterprises Inc.

SPAC Bargain Hunting

With the average pre-deal SPAC trading around $9.81 there are a lot of opportunities for investors to add to their SPAC baskets. Here are some of the most deeply discounted SPACs as of Monday's close. Click through to learn more about each.

-3.90% | ADRA - Adara Acquisition Corp. (Pre-Deal)
-3.90% | KSIC - Kadem Sustainable Impact Corporation (Pre-Deal)
-3.80% | OSI - Osiris Acquisition Corp. (Pre-Deal)
-3.80% | TWLV - Twelve Seas Investment Company II (Pre-Deal)
-3.80% | NBST - Newbury Street Acquisition Corporation (Pre-Deal)
-3.70% | AGAC - African Gold Acquisition Corporation (Pre-Deal)
-3.70% | ASAX - Astrea Acquisition Corp. (Pre-Deal)
-3.70% | IBER - Ibere Pharmaceuticals (Pre-Deal)
-3.70% | ARRW - Arrowroot Acquisition Corp. (Pre-Deal)
-3.70% | MSAC - Medicus Sciences Acquisition Corp. (Pre-Deal)
-3.60% | TUGC - TradeUP Global Corp (Pre-Deal)
-3.60% | FTEV - FinTech Evolution Acquisition Group (Pre-Deal)
-3.60% | MDH - MDH Acquisition Corp. (Pre-Deal)
-3.60% | PSAG - Property Solutions Acquisition Corp. II (Pre-Deal)
-3.58% | VLAT - Valor Latitude Acquisition Corp. (Pre-Deal)
-3.50% | EAC - Edify Acquisition Corp. (Pre-Deal)
-3.50% | PMGM - Priveterra Acquisition Corp. (Pre-Deal)
-3.50% | CLBR - Colombier Acquisition Corp. (Pre-Deal)
-3.50% | TCAC - Tuatara Capital Acquisition Corporation (Pre-Deal)
-3.50% | POND - Angel Pond Holdings Corp (Pre-Deal)
-3.50% | MACA - Moringa Acquisition Corp (Pre-Deal)
-3.50% | SPTK - SportsTek Acquisition Corp. (Pre-Deal)
-3.50% | GLHA - Glass Houses Acquisition Corp. (Pre-Deal)
-3.50% | EBAC - European Biotech Acquisition Corp. (Pre-Deal)
-3.50% | NRAC - Noble Rock Acquisition Corporation (Pre-Deal)
-3.50% | ZWRK - Z-Work Acquisition Corp. (Pre-Deal)
-3.40% | ITQ - Itiquira Acquisition Corp. (Pre-Deal)
-3.40% | OSTR - Oyster Enterprises Acquisition Corp. (Pre-Deal)
-3.40% | ADEX - ADIT EDTECH ACQUISITION CORP. (Pre-Deal)
-3.40% | PUCK - Goal Acquisitions Corp. (Pre-Deal)
-3.40% | BITE - Bite Acquisition Corp. (Pre-Deal)
-3.40% | BOAS - BOA Acquisition Corp. (Pre-Deal)
-3.40% | KIII - Kismet Acquisition Three Corp. (Pre-Deal)
-3.40% | FSNB - Fusion Acquisition Corp. II (Pre-Deal)
-3.40% | JCIC - Jack Creek Investment Corp. (Pre-Deal)
-3.35% | SWET - Athlon Acquisition Corp. (Pre-Deal)
-3.30% | PRSR - Prospector Capital Corp. (Pre-Deal)
-3.30% | CPTK - Crown PropTech Acquisitions (Pre-Deal)
-3.30% | NVSA - New Vista Acquisition Corp (Pre-Deal)
-3.30% | IGNY - Ignyte Acquisition Corp. (Pre-Deal)
-3.30% | TSPQ - TCW Special Purpose Acquisition Corp (Pre-Deal)
-3.30% | PV - Primavera Capital Acquisition Corporation (Pre-Deal)
-3.30% | BLTS - Bright Lights Acquisition Corp. (Pre-Deal)
-3.30% | AFAQ - AF Acquisition Corp. (Pre-Deal)
-3.30% | ANZU - Anzu Special Acquisition Corp I (Pre-Deal)
-3.30% | OPA - Magnum Opus Acquisition Limited (Pre-Deal)
-3.20% | TWNI - Tailwind International Acquisition Corp. (Pre-Deal)
-3.20% | PTOC - Pine Technology Acquisition Corp. (Pre-Deal)
-3.20% | EUSG - European Sustainable Growth Acquisition Corp. (Pre-Deal)
-3.20% | DNZ - D and Z Media Acquisition Corp. (Pre-Deal)
-3.20% | HCAR - Healthcare Services Acquisition Corporation (Pre-Deal)
-3.20% | TETC - Tech and Energy Transition Corporation (Pre-Deal)
-3.20% | VII - 7GC & Co. Holdings Inc. (Pre-Deal)
-3.20% | BRIV - B. Riley Principal 250 Merger Corp. (Pre-Deal)
-3.20% | DLCA - Deep Lake Capital Acquisition Corp. (Pre-Deal)
-3.20% | ACAH - Atlantic Coastal Acquisition Corp. (Pre-Deal)
-3.15% | TRCA - Twin Ridge Capital Acquisition Corp. (Pre-Deal)
-3.10% | BGSX - Build Acquisition Corp. (Pre-Deal)
-3.10% | MIT - Mason Industrial Technology, Inc. (Pre-Deal)
-3.10% | MACQ - MCAP Acquisition Corporation (Pre-Deal)
-3.10% | SHAC - SCP & CO Healthcare Acquisition Company (Pre-Deal)
-3.10% | FINM - Marlin Technology Corp (Pre-Deal)
-3.10% | BIOT - Biotech Acquisition Company (Pre-Deal)
-3.10% | LHC - Leo Holdings Corp. II (Pre-Deal)
-3.10% | TWNT - Tailwind Two Acquisition Corp. (Pre-Deal)
-3.10% | FSSI - Fortistar Sustainable Solutions Corp. (Pre-Deal)
-3.10% | KAII - Kismet Acquisition Two Corp. (Pre-Deal)
-3.10% | CRU - Crucible Acquisition Corporation (Pre-Deal)
-3.10% | IPVA - InterPrivate II Acquisition Corp. (Pre-Deal)
-3.10% | PGRW - Progress Acquisition Corp. (Pre-Deal)
-3.10% | TLGA - TLG Acquisition One Corp. (Pre-Deal)
-3.10% | SLCR - Silver Crest Acquisition Corporation (Pre-Deal)
-3.05% | PNTM - Pontem Corp (Pre-Deal)
-3.00% | FRSG - First Reserve Sustainable Growth Corp (Pre-Deal)
-3.00% | HHLA - HH&L Acquisition Co. (Pre-Deal)
-3.00% | MON - Monument Circle Acquisition Corp (Pre-Deal)
-3.00% | LCA - Landcadia Holdings IV, Inc. (Pre-Deal)
-3.00% | AKIC - Sports Ventures Acquisition Corp. (Pre-Deal)
-3.00% | ITHX - ITHAX Acquisition Corp. (Pre-Deal)
-3.00% | CLAS - Class Acceleration Corp. (Pre-Deal)
-3.00% | AGGR - Agile Growth Corp. (Pre-Deal)
-3.00% | SCAQ - Stratim Cloud Acquisition Corp. (Pre-Deal)
-3.00% | FLME - Flame Acquisition Corp. (Pre-Deal)
-3.00% | ROSS - Ross Acquisition Corp II (Pre-Deal)
-3.00% | ESM - ESM Acquisition Corporation (Pre-Deal)
-3.00% | GAMC - Golden Arrow Merger Corp. (Pre-Deal)
-3.00% | AEAC - Authentic Equity Acquisition Corp. (Pre-Deal)
-3.00% | MACC - Mission Advancement Corp. (Pre-Deal)
-3.00% | EJFA - EJF Acquisition Corp (Pre-Deal)
-3.00% | RCLF - Rosecliff Acquisition Corp I (Pre-Deal)
-3.00% | FACT - Freedom Acquisition I Corp (Pre-Deal)
-3.00% | AAQC - Accelerate Acquisition Corp. (Pre-Deal)
-3.00% | GLBL - Cartesian Growth Corporation (Pre-Deal)
-3.00% | SCOB - ScION Tech Growth II (Pre-Deal)
-3.00% | LEGA - Lead Edge Growth Opportunities, Ltd (Pre-Deal)
-3.00% | SLAM - Slam Corp (Pre-Deal)
-3.00% | ARBG - Aequi Acquisition Corp (Pre-Deal)
-3.00% | SNRH - Senior Connect Acquisition Corp I (Pre-Deal)
-3.00% | GFX - Golden Falcon Acquisition Corp. (Pre-Deal)
-2.90% | DTOC - Digital Transformation Opportunities Corp. (Pre-Deal)
-2.90% | GHAC - Gaming & Hospitality Acquisition Corp. (Pre-Deal)
-2.90% | EPHY - Epiphany Technology Acquisition Corp (Pre-Deal)
-2.90% | BLUA - BlueRiver Acquisition Corp (Pre-Deal)
-2.90% | TMAC - The Music Acquisition Corporation (Pre-Deal)
-2.90% | COVA - Crescent Cove Acquisition Corp. (Pre-Deal)
-2.90% | FRON - Frontier Acquisition Corp. (Pre-Deal)
-2.90% | KAIR - Kairos Acquisition Corp (Pre-Deal)
-2.90% | NXU - Novus Capital Corporation II (Pre-Deal)
-2.90% | HYAC - Haymaker Acquisition Corp. III (Pre-Deal)
-2.90% | GMBT - Queen’s Gambit Growth Capital (Pre-Deal)
-2.90% | SCLE - Broadscale Acquisition Corp (Pre-Deal)
-2.90% | DISA - Disruptive Acquisition Corp I (Pre-Deal)
-2.90% | EQHA - EQ Health Acquisition Corp (Pre-Deal)
-2.90% | MBAC - M3-Brigade Acquisition II Corp (Pre-Deal)
-2.90% | DSAC - Duddell Street Acquisition Corp (Pre-Deal)
-2.90% | MTAC - MedTech Acquisition Corporation (Pre-Deal)
-2.80% | CFVI - CF Acquisition Corp. VI (Pre-Deal)
-2.80% | PMVC - PMV Consumer Acquisition Corp (Pre-Deal)
-2.80% | BYTS - BYTE Acquisition Corp. (Pre-Deal)
-2.80% | LHAA - Lerer Hippeau Acquisition Corp (Pre-Deal)
-2.80% | ADER - 26 Capital Acquisition Corp (Pre-Deal)
-2.80% | KLAQ - KL Acquisition Corp (Pre-Deal)
-2.80% | GAPA - G&P Acquisition Corp. (Pre-Deal)
-2.80% | CTAQ - Carney Technology Acquisition Corp. II (Pre-Deal)
-2.80% | SBEA - SilverBox Engaged Merger Corp I (Pre-Deal)
-2.80% | OHPA - Orion Acquisition Corp. (Pre-Deal)
-2.80% | NSTD - Northern Star Investment Corp. IV (Pre-Deal)
-2.80% | OEPW - One Equity Partners Open Water I Corp. (Pre-Deal)
-2.80% | SLAC - Social Leverage Acquisition Corp I (Pre-Deal)
-2.80% | FSRX - FinServ Acquisition Corp. II (Pre-Deal)
-2.80% | KRNL - Kernel Group Holdings, Inc. (Pre-Deal)
-2.80% | PAQC - Provident Acquisition Corp. (Pre-Deal)
-2.80% | NAAC - North Atlantic Acquisition Corporation (Pre-Deal)
-2.75% | FRXB - Forest Road Acquisition Corp. II (Pre-Deal)
-2.75% | DHBC - DHB Capital Corp. (Pre-Deal)
-2.73% | IPVF - InterPrivate III Financial Partners Inc. (Pre-Deal)
-2.70% | GCAC - Growth Capital Acquisition Corp. (Pre-Deal)
-2.70% | HIGA - H.I.G. Acquisition Corp. (Pre-Deal)
-2.70% | ENVI - Environmental Impact Acquisition Corp. (Pre-Deal)
-2.70% | ASPC - Alpha Capital Acquisition Company (Pre-Deal)
-2.70% | HTPA - Highland Transcend Partners I Corp (Pre-Deal)
-2.70% | CSTA - Constellation Acquisition Corp I (Pre-Deal)
-2.70% | ANAC - Arctos NorthStar Acquisition Corp. (Pre-Deal)
-2.70% | WARR - Warrior Technologies Acquisition Company (Pre-Deal)
-2.70% | GXII - GX Acquisition Corp. II (Pre-Deal)
-2.70% | JOFF - JOFF Fintech Acquisition Corp (Pre-Deal)
-2.70% | FVAM - 501 ACQ CORP (Pre-Deal)
-2.60% | ASAQ - Atlantic Street Acquisition Corp (Pre-Deal)
-2.60% | SBII - Sandbridge X2 Corp (Pre-Deal)
-2.60% | SSAA - Science Strategic Acquisition Corp. Alpha (Pre-Deal)
-2.60% | VPCB - VPC Impact Acquisition Holdings II (Pre-Deal)
-2.60% | FLAC - Frazier Lifesciences Acquisition Corporation (Pre-Deal)
-2.60% | CLRM - Clarim Acquisition Corp. (Pre-Deal)
-2.60% | GGMC - Glenfarne Merger Corp. (Pre-Deal)
-2.60% | CHAA - Catcha Investment Corp (Pre-Deal)
-2.60% | IACC - ION Acquisition Corp 3 Ltd. (Pre-Deal)
-2.60% | RKTA - Rocket Internet Growth Opportunities Corp. (Pre-Deal)
-2.60% | ISLE - Isleworth Healthcare Acquisition Corp. (Pre-Deal)
-2.50% | PRPC - CC Neuberger Principal Holdings III (Pre-Deal)
-2.50% | CLAA - Colonnade Acquisition Corp. II (Pre-Deal)
-2.50% | NMMC - North Mountain Merger Corp (Pre-Deal)
-2.50% | PFDR - Pathfinder Acquisition Corporation (Pre-Deal)
-2.50% | CFIV - CF Acquisition Corp. IV (Pre-Deal)
-2.50% | ENNV - ECP Environmental Growth Opportunities Corp. (Pre-Deal)
-2.50% | FZT - FAST Acquisition Corp. II (Pre-Deal)
-2.50% | MCAE - Mountain Crest Acquisition Corp. III (Pre-Deal)
-2.50% | ATVC - Tribe Capital Growth Corp I (Pre-Deal)
-2.50% | RAM - Aries I Acquisition Corp (Pre-Deal)
-2.50% | BSKY - Big Sky Growth Partners, Inc. (Pre-Deal)
-2.50% | PTIC - PropTech Investment Corporation II (Pre-Deal)
-2.50% | COOL - Corner Growth Acquisition Corp. (Pre-Deal)
-2.50% | IIII - INSU Acquisition Corp. III (Pre-Deal)
-2.50% | PPGH - Poema Global Holdings Corp. (Pre-Deal)
-2.50% | SPKB - Silver Spike Acquisition Corp II (Pre-Deal)
-2.50% | IMPX - AEA-Bridges Impact Corp (Pre-Deal)
-2.50% | ATMR - Altimar Acquisition Corp. II (Pre-Deal)
-2.40% | QFTA - Quantum FinTech Acquisition Corp (Pre-Deal)
-2.40% | PIAI - Prime Impact Acquisition I (Pre-Deal)
-2.40% | ACII - Atlas Crest Investment Corp. II (Pre-Deal)
-2.40% | WPCB - Warburg Pincus Capital Corporation I—B (Pre-Deal)
-2.40% | HUGS - USHG Acquisition Corp. (Pre-Deal)
-2.40% | KAHC - KKR Acquisition Holdings I Corp (Pre-Deal)
-2.40% | SPAQ - Spartan Acquisition Corp. III (Pre-Deal)
-2.40% | CVII - Churchill Capital Corp VII (Pre-Deal)
-2.40% | LFTR - Lefteris Acquisition Corp (Pre-Deal)
-2.40% | EVOJ - Evo Acquisition Corp. (Pre-Deal)
-2.40% | LOKM - Live Oak Mobility Acquisition Corp. (Pre-Deal)
-2.40% | VGII - Virgin Group Acquisition Corp. II (Pre-Deal)
-2.40% | VELO - Velocity Acquisition Corp (Pre-Deal)
-2.40% | GSAQ - Global Synergy Acquisition Corp (Pre-Deal)
-2.40% | BRPM - B. Riley Principal 150 Merger Corp. (Pre-Deal)
-2.40% | TMKR - Tastemaker Acquisition Corp (Pre-Deal)
-2.40% | ASZ - Austerlitz Acquisition Corporation II (Pre-Deal)
-2.30% | POW - Powered Brands (Pre-Deal)
-2.30% | CPUH - Compute Health Acquisition Corp. (Pre-Deal)
-2.30% | NSTC - Northern Star Investment Corp. III (Pre-Deal)
-2.30% | DHHC - DiamondHead Holdings Corp. (Pre-Deal)
-2.30% | LGAC - LAZARD GROWTH ACQUISITION CORP. I (Pre-Deal)
-2.30% | MOTV - Motive Capital Corp (Pre-Deal)
-2.30% | TZPS - TZP Strategies 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.)