On a day where Wall Street was surely focused on Robinhood's less than stellar public debut, one of the infamous faces of the SPAC boom was indicted on charges of misleading shareholders during its SPAC merger. Trevor Milton, the founder of EV truck maker Nikola Motors, had charges handed down from federal prosecutors and a civil complaint from the SEC.
NKLA stock fell over 15% on the news today, though the company wasn't directly charged. It's fall from grace continues as it is down over 58% in the last year.
Milton's indictment is another stark warning of the risks associated in investing in highly ambitious companies with little commercial history, and is increasingly an important reminder on the importance of quality due diligence in the M&A process.
Archer + Atlas Crest Investment (ACIC) cut Deal Price
In another example of a SPAC deal slashing its ticket price amidst a more skeptical SPAC deal environment. Per a joint press release the enterprise valuation for Archer Aviation, the eVTOL taxi company, has been cut from $2.7B to $1.7B. While the ticker shock of a deal valuation reduction can be concerning, a right-sized deal can also be a positive for shareholders and a catalyst for an easier close.
In a further bid to ensure credibility Archer appointed Oscar Munoz, former United Airlines Chairman and CEO, to its board of directors. Atlas Crest is a Moelis-backed SPAC, and the company reiterates that Ken Moelis and affiliates are investing $30M in the $600M PIPE to go along with the deal.
The market barely budged with ACIC rising just 5c to close at $9.92, at which price given today's conditions the sponsors are sure to be expecting some redemptions.
Votes & Redemptions
Dragoneer Growth Opportunities Corp (DGNR) approved its mergers with CCC Info Services, but saw about $210M in redemptions, or almost 1/3 of its trust value.
Jul 30 | $ 9.84 | TWND - Tailwind Acquisition Corp --> QOMPLX, Inc.
Aug 05 | $ 9.98 | RTP - Reinvent Technology Partners --> Joby Aviation
Aug 05 | $ 9.99 | PDAC - Peridot Acquisition Corp --> Li-Cycle Corp
Aug 09 | $ 10.10 | BCTG - BCTG Acquisition Corp. --> Tango Therapeutics
Aug 11 | $ 10.05 | SRAC - Stable Road Acquisition Corp. --> Momentus, Inc.
Aug 11 | $ 10.08 | NBA - New Beginnings Acquisition Corp --> Airspan Networks Inc
Aug 12 | $ 10.05 | CFAC - CF Finance Acquisition Corp. III --> AEye, Inc.
Aug 12 | $ 9.95 | SAII - SOFTWARE ACQ GP --> Otonomo Technologies, Ltd
Aug 13 | $ 9.95 | NSH - NavSight Holdings, Inc --> Spire Global
Today's SPAC IPOs
No surprise here, another day of lackluster IPO debuts, although one actually rose - IMAQ with is a loaded unit with both rights and warrants:
- Metals Acquisition (MTAL /U): $250M with 1/3 warrants and focused on metals & mining fell -1.70%
- Software Acquisition Group III (SWAG /U): $200M with 1/2 warrant and focused on software closed flat
- International Media Acquisition (IMAQ /U): $200M with 1 right (worth 1/20 share) and 1 warrant (worth 3/4 share) and focused on content/film and media rose 0.4%
Today's Price Action
6.49% ~ $ 9.84 | TWND - Tailwind Acquisition Corp (Announced)
1.66% ~ $ 9.80 | FACT - Freedom Acquisition I Corp (Pre-Deal)
1.63% ~ $ 10.00 | DALS - DA32 Life Science Tech Acquisition Corp. (Pre-Deal)
1.56% ~ $ 10.10 | BCTG - BCTG Acquisition Corp. (Announced)
1.34% ~ $ 9.80 | PMGM - Priveterra Acquisition Corp. (Pre-Deal)
1.00% ~ $ 10.12 | LEGO - LEGATO MERGER CORP. (Announced)
.83% ~ $ 9.99 | RACB - Research Alliance Corp. II (Pre-Deal)
.82% ~ $ 9.82 | EPWR - Empowerment & Inclusion Capital I Corp (Pre-Deal)
.81% ~ $ 9.98 | HLXA - HELIX ACQUISITION CORP (Pre-Deal)
.72% ~ $ 9.78 | BOAC - Bluescape Opportunities Acquisition Corp (Pre-Deal)
.72% ~ $ 9.79 | LCAAU - L Catterton Asia Acquisition Corp (Pre-Deal)
.72% ~ $ 9.80 | FVAM - 501 ACQ CORP (Pre-Deal)
.61% ~ $ 9.97 | NEBC - Nebula Caravel Acquisition Corporation (Announced)
.59% ~ $ 10.23 | CND - Concord Acquisition Corp (Announced)
.55% ~ $ 9.93 | AMAO - American Acquisition Opportunity Inc (Pre-Deal)
.52% ~ $ 9.69 | MBAC - M3-Brigade Acquisition II Corp (Pre-Deal)
.52% ~ $ 9.69 | AGAC - African Gold Acquisition Corporation (Pre-Deal)
.52% ~ $ 9.72 | SCLE - Broadscale Acquisition Corp (Pre-Deal)
.51% ~ $ 9.78 | PMVC - PMV Consumer Acquisition Corp (Pre-Deal)
.51% ~ $ 9.79 | OTEC - OceanTech Acquisitions I Corp. (Pre-Deal)
-3.23% ~ $ 10.20 | FTCV - FinTech Acquisition Corp. V (Announced)
-3.00% ~ $ 9.70 | BSGA - Blue Safari Group Acquisition Corp (Pre-Deal)
-2.44% ~ $ 10.00 | BLSA - BCLS Acquisition Corp. (Pre-Deal)
-2.41% ~ $ 9.71 | RXRA - RXR Acquisition Corp (Pre-Deal)
-2.17% ~ $ 12.15 | TPGY - TPG Pace Beneficial Finance Corp (Announced)
-2.14% ~ $ 9.16 | DGNR - Dragoneer Growth Opportunities Corp (Announced)
-2.13% ~ $ 9.66 | GGMC - Glenfarne Merger Corp. (Pre-Deal)
-1.68% ~ $ 9.93 | CHAQ - Chardan Healthcare Acquisition 2 Corp. (Announced)
-1.56% ~ $ 10.75 | MUDS - Mudrick Capital Acquisition Corporation II (Announced)
-1.53% ~ $ 9.63 | EJFA - EJF Acquisition Corp (Pre-Deal)
-1.41% ~ $ 9.78 | OHPA - Orion Acquisition Corp. (Pre-Deal)
-1.28% ~ $ 9.99 | SMIH - Summit Healthcare Acquisition Corp. (Pre-Deal)
-1.20% ~ $ 9.85 | GRSV - GORES HOLDINGS V, INC. (Announced)
-1.12% ~ $ 9.68 | LGAC - LAZARD GROWTH ACQUISITION CORP. I (Pre-Deal)
-1.01% ~ $ 9.85 | YTPG - TPG Pace Beneficial II Corp. (Pre-Deal)
-.97% ~ $ 10.17 | GLSPU - Global SPAC Partners Co. (Pre-Deal)
-.92% ~ $ 9.69 | ARBG - Aequi Acquisition Corp (Pre-Deal)
-.92% ~ $ 9.70 | CSTA - Constellation Acquisition Corp I (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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- MACQ Rises on New Deal, Palantir in Two New PIPES
- AdTheorent Going Public with MCAP Acquisition (MACQ)
- CCIV No Longer as LCID Begins Trading, and 7 SPACs Voting this week
- CCIV/Lucid is Official. Now What?
- Pre-Deal SPACs are Cheap
- SPACs Edge Higher, CCIV Shareholder Vote Tomorrow
- SPACs Fall with Stocks in Down Day
- A SPAC Risk Exposed?
- Ackman / PSTH Deal Falls Apart, and Merger Monday is Back
- RTPY Rises on Deal with Aurora, PFDR Strikes $1.4B Deal with Service Max
- Will Large Redemptions Force a Change in Sponsor Economics?
- SEC, Gensler Lay the Hammer on Stable Road (SRAC) & Momentus
- LCAP Rises on MSP Deal, ASPL Sees Huge Redemptions in Wheels Up Vote
- Lionheart Acquisition (LCAP) Announces $32.6B SPAC Deal with MSP Recovery
- Nextdoor Leads the Way in Busy Merger Week
- Despite Higher Activity Level SPACs Showing Some Weakness
- SPAC Deal Announcement Pops and Warrants Surge
- Hyperfine, Circle, and Alpha Tau Healthcare Get SPAC Deals
- Pre-Deal SPACs are Cheap
- Khosla Ventures Acquisition II Soars on Nextdoor Deal
- Khosla taking Nextdoor Public in $4.3B Deal and CF Acquisition Announced Satellogic $850M Deal
- Chamath's Bio SPACs Rise, WPF has Large Redemptions
- Stable Road (SRAC) Cuts Deal Valuation in Half -- Market Loves It
- SPACs Flat, LACQ and IACA Votes Pass
- 10 SPAC Deal Votes Close Out June
- De-SPACs Get Set to Join the Russell 3000
- Weekly Director/CEO/CFO Moves: Matthew Furlong Takes the Helm at GameStop & EBAY Gets a New CFO
- Churchill (CCIV) & Lucid Sets its Vote Date
(Disclaimers: this is not investment advice. The author may be long one or more stocks mentioned in this report.)