SOAC's PIPE Holders Aren't Paying Up

SOAC disclosed that only 1/3 of its PIPE subscribers have actually deposited their commitments, potentially leaving the company with far less cash than anticipated.
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SOAC PIPE Holders Don't Pay Up

In what could be another troubling sign for SPACs, Sustainable Opportunities Acquisition Corp. (SOAC) disclosed that while its shareholders approved the merger vote with DeepGreen (tba The Metals Company) only 1/3 of its PIPE subscribers have actually deposited their commitments. The company has only received ~$110M of the $330M commitment to the PIPE

"SOAC intends to continue to seek to enforce the funding obligations of the non-performing investors under the subscription agreements, but there can be no assurances that it will be successful in those efforts."

See the Press Release here

As a result of the redemptions, ~91% in this case, and the non-assurance that PIPE investors will pay up (there will surely be a legal battle here) DeepGreen will waive the $250M minimum cash requirement that was originally agreed on to close the deal. SOAC shares rose +16.7% to $11.69 🤷‍♂️

SPAC Short Squeezes Back On

Wild trading is back, echoing similar sentiments from a few weeks ago. SPACs with high redemptions, and subsequently much smaller floats, are rising aggressively in volatile trading. The latest example, IronNet (IRNT) which de-spac'ed on Aug 27 saw 93% redemptions in congruence with its merger vote. 

Trading was intense again today with shares hitting as high as $28, and still closing up ~18% at $19.59. The stock is up over 42% over the last 5 days. 

IRNT Shares have surged in the last week. 

IRNT Shares have surged in the last week. 

SPAC Market

While many would have expected a "Merger Tuesday" post the Labor Day holiday, there were no new agreements to start the week. There are, however, several SPACs gearing up for their merger votes: 

Sep 08 | $ 10.56 | SFTW - Osprey Technology Acquisition Corp. --> BlackSky
Sep 09 | $ 17.30 | RICE - Rice Acquisition Corp. --> Aria Energy & Achaea Energy
Sep 10 | $ 9.99 | QELL - Qell Acquisition Corp --> Lilium
Sep 14 | $ 9.99 | PACE - TPG Pace Tech Opportunities Corp --> Nerdy Inc.
Sep 14 | $ 9.96 | SRNG - Soaring Eagle Acquisition Corp. --> Ginkgo
Sep 14 | $ 10.00 | ACIC - Atlas Crest Investment Corp --> Archer Aviation
Sep 15 | $ 9.98 | ROT - Rotor Acquisition Corp --> SARCOS CORP.
Sep 15 | $ 9.98 | DEH - D8 Holdings Corp. --> Vicarious Surgical Inc.
Sep 16 | $ 9.98 | CTAC - Cerberus Telecom Acquisition Corp --> Kore

Today's Price Action

Biggest Gainers

16.67% ~ $ 11.69 | SOAC - Sustainable Opportunities Acquisition Corp. (Announced)
5.88% ~ $ 17.30 | RICE - Rice Acquisition Corp. (Announced)
5.81% ~ $ 10.56 | SFTW - Osprey Technology Acquisition Corp. (Announced)
5.36% ~ $ 12.59 | TDAC - Trident Acquisitions Corp (Announced)
4.96% ~ $ 8.04 | BLUW - Blue Water Acquisition Corporation (Announced)
2.80% ~ $ 11.73 | LEGO - LEGATO MERGER CORP. (Announced)
2.56% ~ $ 9.20 | SV - Spring Valley Acquisition Corp (Announced)
1.04% ~ $ 9.73 | IGNY - Ignyte Acquisition Corp. (Pre-Deal)
.98% ~ $ 9.75 | HCNE - Jaws Hurricane Acquisition Corporation (Pre-Deal)
.93% ~ $ 9.72 | SPKB - Silver Spike Acquisition Corp II (Pre-Deal)
.93% ~ $ 9.77 | MACC - Mission Advancement Corp. (Pre-Deal)
.88% ~ $ 9.79 | CPAR - Catalyst Partners Acquisition Corp. (Pre-Deal)
.86% ~ $ 9.96 | IIAC - Investindustrial Acquisition Corp. (Announced)
.83% ~ $ 9.73 | FZT - FAST Acquisition Corp. II (Pre-Deal)
.83% ~ $ 9.74 | PLMI - Plum Acquisition Corp. I (Pre-Deal)
.82% ~ $ 9.85 | WALD - Waldencast Acquisition Corp. (Pre-Deal)
.81% ~ $ 9.98 | GGGV - G3 VRM Acquisition Corp. (Pre-Deal)
.79% ~ $ 9.76 | WPCA - Warburg Pincus Capital Corporation I—A (Pre-Deal)

Biggest Losers

-2.43% ~ $ 10.43 | CND - Concord Acquisition Corp (Announced)
-2.33% ~ $ 9.66 | VLAT - Valor Latitude Acquisition Corp. (Pre-Deal)
-2.04% ~ $ 9.62 | ACRO - Acropolis Infrastructure Acquisition Corp. (Pre-Deal)
-1.52% ~ $ 9.69 | LEGA - Lead Edge Growth Opportunities, Ltd (Pre-Deal)
-1.43% ~ $ 11.00 | VIH - VPC Impact Acquisition Holdings (Announced)
-1.22% ~ $ 9.72 | CORS - Corsair Partnering Corporation (Pre-Deal)
-1.12% ~ $ 9.75 | LAAA - Lakeshore Acquisition I Corp. (Pre-Deal)
-1.07% ~ $ 10.15 | XPDI - Power & Digital Infrastructure Acquisition Corp. (Announced)
-.93% ~ $ 9.61 | IBER - Ibere Pharmaceuticals (Pre-Deal)
-.92% ~ $ 9.65 | OHPA - Orion Acquisition Corp. (Pre-Deal)
-.92% ~ $ 9.70 | FRW - PWP Forward Acquisition Corp. I (Pre-Deal)
-.92% ~ $ 9.73 | SVFB - SVF Investment Corp. 2 (Pre-Deal)
-.90% ~ $ 9.86 | BCAC - Brookline Capital Acquisition Corp. (Pre-Deal)
-.85% ~ $ 9.92 | FLAC - Frazier Lifesciences Acquisition Corporation (Pre-Deal)
-.84% ~ $ 12.95 | FST - FAST ACQ CP (Announced)
-.84% ~ $ 9.66 | LITT - Logistics Innovation Technologies Corp. (Pre-Deal)
-.82% ~ $ 9.70 | VGII - Virgin Group Acquisition Corp. II (Pre-Deal)
-.80% ~ $ 9.91 | MBTC - Nocturne Acquisition Corporation (Pre-Deal)
-.72% ~ $ 9.71 | MCAF - Mountain Crest Acquisition Corp. IV (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.)

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