June has been a good month for SPACs as the narrative has shifted to a much more positive one. Below we take a look at the remaining votes, how IPOs have done, deal announcements, and more.
First, we take a look at this morning's merger announcement with Leo Holdings III (LIII) announcing it is taking Local Bounti public in a $1.1B equity value SPAC deal. The deal has a $125m PIPE with Fidelity Management & Research Company LLC and BNP Paribas Asset Management Ecosystem Restoration Fund, and strategic partners Cargill and Sarath Ratanavadi of Gulf Energy Development Public Company Limited all participating.
LIII closed yesterday at $9.80, pretty deep below NAV, so it will be interesting to see the reaction from investors on the deal announcement. One thing that will stick out for investors is that while the investor presentation says Local Bounti is "Revenue Generating Today", that revenue appears small and there is massive ramp forecast.
Given the on-going issues with Lordstown (RIDE) some investors may be put off by these these aggressive forecasts. Investors can see the full deck (after lots of other 8-k pages) here: Leo Holdings III / Local Bounti Investor Deck.
June's SPAC Shareholder Votes
We're done with the shareholder votes for this week, but next week will be another busy one. Again, watch for some bigger price swings and, in some cases, redemptions.
As we noted yesterday morning and at market close, there have been several instances of big redemptions. Such as CRSA which reported $150M in redemptions (60% of trust), leaving just $98M in trust, and caused the company to waive its minimum cash threshold and amend the sources and uses of the merger consideration. Also, HEC reported over $250M of redemptions (>60% of trust) leaving $150M in trust.
Jun 22 | $ 12.08 | FTIV - FinTech Acquisition Corp. IV --> Perella Weinberg Partners LLC
Jun 22 | $ 9.97 | TBA - Thoma Bravo Advantage --> ironSource
Jun 23 | $ 10.02 | FTOC - FTAC Olympus Acquisition Corp --> Payoneer Inc.
Jun 23 | $ 9.98 | AACQ - Artius Acquisition Inc. --> Origin Materials
Jun 24 | $ 9.98 | FIII - Forum Merger III Corporation --> Electric Last Mile, Inc.
Jun 24 | $ 10.01 | FRX - Forest Road Acquisition Corp --> Beachbody, LLC
Jun 28 | $ 10.10 | IACA - ION Acquisition Corp 1 Ltd --> Taboola
Jun 29 | $ 10.15 | RACA - Therapeutics Acquisition Corp --> POINT Biopharma
Jun 29 | $ 9.98 | FCAC - Falcon Capital Acquisition Corp --> sharecare
Jun 29 | $ 14.11 | CLII - Climate Change Crisis Real Impact I Acquisition Corp --> EVgo
Jun 30 | $ 10.14 | WPF - Foley Trasimene Acquisition Corp. --> Alight Solutions
Jun 30 | $ 10.89 | HOL - Holicity Inc --> Astra
Jun 30 | $ 10.06 | ALUS - Alussa Energy Acquisition Corp --> FREYR
Jun 30 | $ 11.64 | APXT - Apex Technology Acquisition Corporation --> AvePoint, Inc.
June's IPOs Continue to Hold Near NAV
The SPAC market continues to find its full equilibrium, but in a positive sign most of June's IPOs are trading within a few cents of their $10 NAV. A few are even trading up above $10.
As we've said before, there still remains an oversupply of SPACs in the market, but the current pacing of de-SPACs and IPOs won't upset the balance. However, if sponsors get a little too excited and start pushing SPACs to market at a higher rate, watch out.
Jun 16 | $10.06 | TRON - CORNER GROWTH ACQUISITION CORP. 2
Jun 15 | $ 9.95 | DILA - Dila Capital Acquisition Corp
Jun 15 | $ 10.16 | RONI - Rice Acquisition Corp. II
Jun 15 | $ 10.15 | ZT - Zimmer Energy Transition Acquisition Corp.
Jun 14 | $ 10.02 | GSQB - G Squared Ascend II, Inc.
Jun 10 | $ 9.99 | LITT - Logistics Innovation Technologies Corp.
Jun 10 | $ 10.00 | LAAA - Lakeshore Acquisition I Corp.
Jun 10 | $ 10.08 | HCNE - Jaws Hurricane Acquisition Corporation
Jun 09 | $ 9.92 | CLBR - Colombier Acquisition Corp.
Jun 09 | $ 9.95 | BSGA - Blue Safari Group Acquisition Corp
Jun 09 | $ 9.96 | SMIH - Summit Healthcare Acquisition Corp.
Jun 09 | $ 9.94 | ISAA - Iron Spark I Inc.
Jun 08 | $ 9.93 | GACQ - Global Consumer Acquisition Corp.
Jun 07 | $ 10.07 | SPK - SPK Acquisition Corp.
Joining the June SPAC IPOs will be Barry Sternlicht's JAWS Juggernaut (JUGG/U) which priced an upsized $240m, 1/4 warrant SPAC focused on wireless communications.
This leaves Sternlicht with just one SPAC, Wildcat, left to price in the series. Sternlicht is one of the most prolific SPAC sponsors with 6 total. His de-SPAC, Cano Health, is trading at $13.85 providing investors who got in early good returns (though it is down some since de-SPAC given timing). His Jaws Spitfire announced a deal for Velo3D in March and will be coming up for a vote sooner rather than later.
June's Deal Announcements
While investors will be pleased with how SPAC IPOs are holding up, they will be less pleased with what they are seeing for deal announcements. For SPACs with deals announced in June, most are trading below NAV and only a few are slightly above.
Watch for price spikes on or around ex-redemption dates for these. While that has been a trend of late, it hasn't been a lock for every SPAC, so investors haven't fully cracked the trade yet.
Jun 17 | $ 10.16 | GSAH - GS Acquisition Holdings Corp II --> Mirion Technologies
Jun 16 | $ 9.92 | ROCR - ROTH CH ACQUISITION III CO --> QualTek
Jun 15 | $ 10.67 | DCRC - Decarbonization Plus Acquisition Corporation III --> Solid Power Inc.
Jun 14 | $ 9.87 | SVOK - Seven Oaks Acquisition Corp. --> Boxed
Jun 11 | $ 9.90 | YAC - Yucaipa Acquisition Corporation --> SIGNA Sports United
Jun 10 | $ 9.96 | BSN - Broadstone Acquisition Corp. --> Vertical Aerospace
Jun 10 | $ 10.04 | TMTS - Spartacus Acquisition Corporation --> NextNav Holdings, LLC
Jun 10 | $ 9.98 | VENA - Venus Acquisition Corporation --> VIYI Algorithm Inc.
Jun 09 | $ 9.96 | KCAC - Kensington Capital Acquisition Corp. II --> Wallbox
Jun 09 | $ 9.89 | KVSA - Khosla Ventures Acquisition Co --> Valo Health
Jun 07 | $ 9.89 | VPCC - VPC Impact Acquisition Holdings III, Inc. --> DAVE INC.
Jun 04 | $ 9.83 | GIG - GigCapital4, Inc. --> BigBear.ai
Jun 04 | $ 22.74 | PSTH - Pershing Square Tontine Holdings --> Universal Music Group
Jun 03 | $ 9.88 | KURI - Alkuri Global Acquisition Corp. --> Babylon
Thursday's Biggest Gainers
8.63% ~ $ 13.09 | CMLF - CM Life Sciences Inc (Announced)
6.56% ~ $ 14.29 | LACQ - Leisure Acquisition Corp. (Announced)
2.23% ~ $ 11.47 | BCTG - BCTG Acquisition Corp. (Announced)
2.04% ~ $ 20.97 | SSPK - Silver Spike Acquisition Corp. (Announced)
1.75% ~ $ 10.25 | HLXA - HELIX ACQUISITION CORP (Pre-Deal)
1.60% ~ $ 10.16 | GSAH - GS Acquisition Holdings Corp II (Announced)
1.52% ~ $ 22.74 | PSTH - Pershing Square Tontine Holdings (Announced)
1.34% ~ $ 9.82 | ANZU - Anzu Special Acquisition Corp I (Pre-Deal)
1.34% ~ $ 9.84 | KRNL - Kernel Group Holdings, Inc. (Pre-Deal)
1.32% ~ $ 12.26 | LCY - Landcadia Holdings III Inc (Announced)
1.19% ~ $ 16.98 | RICE - Rice Acquisition Corp. (Announced)
1.13% ~ $ 9.84 | IPVI - InterPrivate IV InfraTech Partners Inc. (Pre-Deal)
1.12% ~ $ 9.96 | DDMX - DD3 Acquisition Corp. II (Pre-Deal)
1.05% ~ $ 11.52 | PDAC - Peridot Acquisition Corp (Announced)
1.03% ~ $ 9.82 | GGMC - Glenfarne Merger Corp. (Pre-Deal)
1.01% ~ $ 9.98 | VTIQ - VectoIQ Acquisition Corp. II (Pre-Deal)
1.00% ~ $ 10.15 | ZT - Zimmer Energy Transition Acquisition Corp. (Pre-Deal)
Thursday's Biggest Losers
-10.99% ~ $ 8.75 | ACAC - Acies Acquisition Corp (Announced)
-8.07% ~ $ 9.00 | HEC - Hudson Executive Investment Corp (Announced)
-4.85% ~ $ 9.41 | CRSA - Crescent Acquisition Corp (Announced)
-2.72% ~ $ 11.10 | MUDS - Mudrick Capital Acquisition Corporation II (Announced)
-2.42% ~ $ 14.11 | CLII - Climate Change Crisis Real Impact I Acquisition Corp (Announced)
-2.10% ~ $ 12.57 | PSAC - Property Solutions Acquisition Corp (Announced)
-2.04% ~ $ 23.55 | CCIV - Churchill Capital Corp IV (Announced)
-1.92% ~ $ 9.72 | ARYA - Arya Sciences Acquisition Corp III (Announced)
-1.83% ~ $ 11.82 | TDAC - Trident Acquisitions Corp (Announced)
-1.64% ~ $ 10.18 | AHAC - Alpha Healthcare Acquisition Corp (Announced)
-1.46% ~ $ 10.10 | IACA - ION Acquisition Corp 1 Ltd (Announced)
-1.42% ~ $ 11.14 | FWAA - Fifth Wall Acquisition Corp. I (Announced)
-1.22% ~ $ 9.75 | FTAA - FTAC Athena Acquisition Corp. (Pre-Deal)
-1.21% ~ $ 9.80 | LIII - Leo Holdings III Corp (Pre-Deal)
-1.19% ~ $ 9.95 | CHAQ - Chardan Healthcare Acquisition 2 Corp. (Announced)
-1.15% ~ $ 10.31 | DMYI - dMY Technology Group Inc III (Announced)
-1.13% ~ $ 10.11 | NGCA - NextGen Acquisition Corp. II (Pre-Deal)
-1.07% ~ $ 10.13 | CCV - Churchill Capital Corp V (Pre-Deal)
More from Boardroom Alpha
More from Boardroom Alpha For ongoing tracking, analytics, and data on SPACs checkout Boardroom Alpha's SPAC Data and Analytics service.
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- Lordstown (RIDE) CEO Steve Burns Resigns; Boxed + SVOK
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- De-SPACs Are Popping, Another eVTOL Merger
- Amid Positive SPAC Momentum, IPOs Returned Too
- The SPAC Tide is Turning Positive
- Less Angst in SPAC Land + Wallbox in a $1.5B SPAC Deal
- SPACs Rise, RIDE Plunges on Going Concern
- SPAC Narrative Changing: CLOV Surges in Pre-Market, CCIV Surged Monday
- VPC Impact Drops on Dave Deal, More SPAC Votes Ahead
- A Big Week for SPACs. Will the Narrative Continue to Improve?
- Ackman Rewrites the SPAC "Merger", De-SPACs are Heating Up
- 2 SPACs Vote Tomorrow amid June Merger Frenzy
- SPAC Narrative Changing with De-SPAC Success and New Chamath SPACs?
- Hot Start for SoFi, while MUDS Takes a Hit on AMC and Candy Digital News
- SPAC Activity Picks Up into Memorial Day, Remain Heavily Discounted
- IPOE Passes Vote as Chamath Pens Op-Ed, PACX Rises on Acorns Deal
- Chamath's IPOE Shareholders Vote Today on SoFi Merger; Acorns and eFFECTOR Deals
(Disclaimers: this is not investment advice. The author may be long one or more stocks mentioned in this report.)