Nikola's Milton Charged, and Archer Slashes SPAC Deal Valuation

More negative headlines for SPACs as the now infamous Trevor Milton was charged with misleading investors, while Archer Aviation slashed its valuation.
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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. 

NKLA shares fell over 15% today

NKLA shares fell over 15% today

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. 

Upcoming votes:

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:

Today's Price Action

Biggest Gainers

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)

Biggest Losers

-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)

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