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TradeStation Group Strikes SPAC Deal with Quantum FinTech (QFTA)

QFTA rises slightly on the news, warrants +78%. SPAC IPO deluge continues as nearly $3B in SPACs have priced in the first 4 days of November.

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TradeStation Group struck a deal to go public via Quantum FinTech (QFTA) in a deal that values the multi-asset trading platform at a $1.43B enterprise value. The deal carries with it a $115M PIPE from the likes of Monex Group, Galaxy Digital, XBTO Ventures and Appian Way. 

In order to help quell redemptions, the deal also touts that 750k shares of additional common stock will be issued to QFTA shareholders that elect not to redeem alongside the transaction. TradeStation parent Monex will roll 100% of its equity in the business and retain ~80% total ownership of the pro forma company. 

Look out for a new podcast tomorrow, featuring John Collins CEO of Sports Entertainment Acquisition Corp (SEAH) and Super Group CEO Neal Menashe

TradeStation Highlights + Transaction Rationale

Source: TradeStation IR Deck

Source: TradeStation IR Deck

 QFTA shares rose 1.3% to close at $9.96, while the warrants jumped +78% to close at $0.66. 

SPAC IPOs are Plentiful

As we touched on yesterday, the SPAC IPO market is on 🔥🔥. October eclipsed $10B in issuance and in just 4 trading days of November we're almost already at $3B in fresh issuance. Trends? Overfunded trusts seem to be a pre-req to getting a deal done. 

ipos114

What remains to be seen is will the M&A market heat up enough to effectively clear the oversupply of SPACs in the market or will a liquidation wave be on the horizon?

Today's Price Action

Biggest Gainers

1.79% ~ $ 13.10 | MEKA - MELI Kaszek Pioneer Corp (Pre-Deal)
1.33% ~ $ 9.91 | DSAC - Duddell Street Acquisition Corp (Pre-Deal)
1.32% ~ $ 9.96 | QFTA - Quantum FinTech Acquisition Corp (Announced)
1.28% ~ $ 11.83 | AGC - Altimeter Growth Corp. (Announced)
1.25% ~ $ 10.49 | MOTN - Motion Acquisition Corp (Announced)
1.06% ~ $ 10.02 | BLSA - BCLS Acquisition Corp. (Pre-Deal)
.91% ~ $ 11.04 | AGBA - AGBA ACQUISITION LIMITED (Pre-Deal)
.82% ~ $ 9.88 | FCAX - Fortress Capital Acquisition Corp (Pre-Deal)
.82% ~ $ 9.88 | FLAG - First Light Acquisition Group, Inc. (Pre-Deal)
.77% ~ $ 10.42 | SBEA - SilverBox Engaged Merger Corp I (Announced)
.72% ~ $ 9.84 | AAQC - Accelerate Acquisition Corp. (Pre-Deal)
.62% ~ $ 9.76 | OSI - Osiris Acquisition Corp. (Pre-Deal)
.62% ~ $ 9.94 | GLTA - Galata Acquisition Corp (Pre-Deal)
.61% ~ $ 9.82 | RXRA - RXR Acquisition Corp (Pre-Deal)
.61% ~ $ 9.90 | PHIC - Population Health Investment Co Inc (Pre-Deal)
.61% ~ $ 9.81 | LOKM - Live Oak Mobility Acquisition Corp. (Pre-Deal)
.60% ~ $ 10.00 | ARYE - ARYA Sciences Acquisition Corp V (Pre-Deal)

Biggest Losers

DWAC continues it's roller-coaster down another 7% today, but still trading at an astonishing $58.84. 

-7.02% ~ $ 12.85 | XPDI - Power & Digital Infrastructure Acquisition Corp. (Announced)
-6.97% ~ $ 58.84 | DWAC - Digital World Acquisition Corp. (Announced)
-4.94% ~ $ 12.31 | DCRC - Decarbonization Plus Acquisition Corporation III (Announced)
-2.76% ~ $ 10.23 | KVSB - Khosla Ventures Acquisition Co. II (Announced)
-2.41% ~ $ 10.13 | DGNS - DRAGONEER GR OP (Announced)
-1.92% ~ $ 12.75 | CND - Concord Acquisition Corp (Announced)
-1.90% ~ $ 11.33 | TPGY - TPG Pace Beneficial Finance Corp (Announced)
-1.72% ~ $ 10.85 | SEAH - Sports Entertainment Acquisition Corp (Announced)
-1.54% ~ $ 10.84 | FTCV - FinTech Acquisition Corp. V (Announced)
-1.50% ~ $ 9.84 | NGAB - Northern Genesis Acquisition Corp. II (Announced)
-1.50% ~ $ 10.51 | BENE - Benessere Capital Acquisition Corp. (Pre-Deal)
-1.47% ~ $ 10.69 | FPAC - Far Peak Acquisition Corp (Announced)
-1.40% ~ $ 10.54 | GGPI - Gores Guggenheim, Inc (Announced)
-1.32% ~ $ 12.71 | FST - FAST ACQ CP (Announced)
-1.22% ~ $ 9.70 | SLVR - SILVERspac Inc (Pre-Deal)
-1.19% ~ $ 10.79 | IVAN - Ivanhoe Capital Acquisition Corp (Announced)
-1.07% ~ $ 10.19 | BRPM - B. Riley Principal 150 Merger Corp. (Announced)
-.98% ~ $ 10.10 | SVFA - SVF Investment 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.)