Yesterday we spoke about Locust Walk Acquisition's (LWAC) near record, and stunning, 97% redemption from its SPAC trust following the eFFECTOR vote - and for the 2nd time in as many weeks, a SPAC with massive redemptions saw a huge price jump on the following day (see Helbiz/Greenvision).
What's driving the movement? It likely has to do with the very small float left (just around ~500k shares or so for LWAC in trading) and at least the perception that there may be a short squeeze going on. Nonetheless, pay attention to upcoming merger votes that are trading at heavy discounts to see if this market dynamic continues.
However, be careful, as wild swings are sure to be present and the elevated price levels may not be sustainable. Prime example, HLBZ is back below $7.
Will we see more examples of the LWAC dynamic?
Good Works Acquisition (GWAC) reported $128M, or ~76% redemptions in connection with its vote for Cipher Mining. GWAC closed up today +2.7%
Tortoise Acquisition Corp (SNPR), rose huge today +16.4% to close above $10. SNPR reported $242M in redemptions, or ~70% of its trust, leaving a healthier float of ~$100M.
Three more votes left this week, all three jumped today, the theme is definitely on.
Aug 26 | $ 10.13 | DFNS - LGL Systems Acquisition Corp --> IronNet Cybersecurity, Inc.
Aug 27 | $ 10.04 | TWCT - TWC Tech Holdings II Corp --> Cellebrite
Aug 27 | $ 10.45 | BLUW - Blue Water Acquisition Corporation --> Clarus Therapeutics
Ace Global Business strikes $300M deal with DDC
ACBA barely moved (+0.08%) after announcing a $300M deal to take DDC Enterprise (DayDayCook) public in a SPAC deal. ACBA closed at $10.00 flat today.
This follows the theme of recent merger announcements not really moving, here's a look at where recent DAs are trading:
Aug 25 | $ 10.00 | ACBA - Ace Global Business Acquisition Limited --> DDC Enterprise Limited
Aug 23 | $ 9.86 | NGCA - NextGen Acquisition Corp. II --> Virgin Orbit
Aug 18 | $ 10.00 | ADF - Aldel Financial Inc. --> Hagerty
Aug 18 | $ 9.82 | IPVF - InterPrivate III Financial Partners Inc. --> Aspiration Partners
Aug 16 | $ 9.81 | MBAC - M3-Brigade Acquisition II Corp --> Syniverse Corp
Aug 16 | $ 9.78 | SLCR - Silver Crest Acquisition Corporation --> Tim Hortons China
Aug 13 | $ 9.80 | MTAC - MedTech Acquisition Corporation --> Memic Innovative Surgery Ltd.
Aug 12 | $ 9.80 | FRSG - First Reserve Sustainable Growth Corp --> EO Charging
SPAC IPO Market Back Open?
We've been noting that there have been a flurry of SPAC S-1 amendments this week, perhaps gearing up for a post Labor Day bonanza. After just 1 IPO last week, we finally have the week's first.
Springwater Special Situations Corp (SWSSU) announced it priced its $150M SPAC offering with 1/2 warrant coverage and a $10.10 overfunded trust value.
Today's Price Action
16.40% ~ $ 10.22 | SNPR - Tortoise Acquisition Corp II (Announced)
5.50% ~ $ 10.45 | BLUW - Blue Water Acquisition Corporation (Announced)
4.60% ~ $ 8.42 | AJAX - Ajax I (Announced)
4.47% ~ $ 16.61 | RICE - Rice Acquisition Corp. (Announced)
3.09% ~ $ 10.00 | ROSS - Ross Acquisition Corp II (Pre-Deal)
2.69% ~ $ 10.30 | TPGY - TPG Pace Beneficial Finance Corp (Announced)
2.66% ~ $ 10.02 | GWAC - Good Works Acquisition Corp (Announced)
2.43% ~ $ 10.13 | DFNS - LGL Systems Acquisition Corp (Announced)
1.96% ~ $ 9.86 | GNAC - GROUP NINE ACQUISITION CORP. (Pre-Deal)
1.65% ~ $ 9.86 | FTVI - FinTech Acquisition Corp. VI (Pre-Deal)
1.31% ~ $ 10.04 | TWCT - TWC Tech Holdings II Corp (Announced)
.99% ~ $ 10.20 | CND - Concord Acquisition Corp (Announced)
.94% ~ $ 9.71 | GOBI - Gobi Acquisition Corp. (Pre-Deal)
.93% ~ $ 9.74 | LITT - Logistics Innovation Technologies Corp. (Pre-Deal)
.93% ~ $ 9.75 | LAAA - Lakeshore Acquisition I Corp. (Pre-Deal)
.88% ~ $ 10.29 | KSMT - KISMET ACQ ONE (Announced)
.83% ~ $ 9.70 | IBER - Ibere Pharmaceuticals (Pre-Deal)
.83% ~ $ 9.71 | ESM - ESM Acquisition Corporation (Pre-Deal)
-2.97% ~ $ 9.80 | CNTQ - Chardan NexTech Acquisition 2 Corp. (Pre-Deal)
-2.59% ~ $ 10.90 | LEGO - LEGATO MERGER CORP. (Announced)
-1.93% ~ $ 9.66 | JUGG - Jaws Juggernaut Acquisition Corporation (Pre-Deal)
-1.47% ~ $ 11.40 | FST - FAST ACQ CP (Announced)
-1.13% ~ $ 9.65 | LOKM - Live Oak Mobility Acquisition Corp. (Pre-Deal)
-1.02% ~ $ 9.70 | NGC - Northern Genesis Acquisition Corp. III (Pre-Deal)
-1.02% ~ $ 9.70 | TCVA - TCV Acquisition Corp. (Pre-Deal)
-.93% ~ $ 9.62 | TIOA - Tio Tech A (Pre-Deal)
-.92% ~ $ 9.66 | COOL - Corner Growth Acquisition Corp. (Pre-Deal)
-.83% ~ $ 9.61 | SWET - Athlon Acquisition Corp. (Pre-Deal)
-.82% ~ $ 9.70 | BLSA - BCLS Acquisition Corp. (Pre-Deal)
-.82% ~ $ 9.72 | DNAC - Social Capital Suvretta Holdings Corp. III (Pre-Deal)
-.82% ~ $ 9.72 | GWII - Good Works II Acquisition Corp. (Pre-Deal)
-.80% ~ $ 9.92 | GGGV - G3 VRM Acquisition Corp. (Pre-Deal)
-.72% ~ $ 9.63 | FRXB - Forest Road Acquisition Corp. II (Pre-Deal)
-.72% ~ $ 9.67 | MACC - Mission Advancement Corp. (Pre-Deal)
-.72% ~ $ 9.72 | DNAA - Social Capital Suvretta Holdings Corp. I (Pre-Deal)
-.62% ~ $ 9.63 | PUCK - Goal Acquisitions Corp. (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.
- Apollo is Raising $500M for SPACs, LWAC sees 97% Redemptions
- SPAC Friday Morning Bloodbath
- SPAC Fire Sale
- Tim Hortons China Going Public, AEye and ReNew See High Redemptions
- Guidance Slashing is Killing De-SPACs
- ESG SPAC Deal with ADS-TEC Energy Picked by EUSG
- DKNG Steals Spotlight, ASAX to Take HotelPlanner Public
- SPACs Eating Their Own: DKNG to Acquire GNOG
- SPAC IPOs are Getting Done at a High Price
- All SPAC Analysis from Boardroom Alpha
(Disclaimers: this is not investment advice. The author may be long one or more stocks mentioned in this report.)