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SPAC Market Set for a Breather?

After weeks of a very busy new issue calendar and scores of merger announcements, a slow down is likely this week, capping off a monstrous year for the asset class.

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With just 4 days left in 2021 it feels as if the SPAC market might be taking a breather and gearing up for 2022. This week looks to be light in terms of any new issuance or merger announcements, with no such activity to start the week off. 

There are, however, two SPAC votes are on tap for tomorrow:

  • Athena Technology (ATHN) got a little bump after it went ex-redemption last week, closing up over 6% to $9.49. Shareholders will vote on Heliogen deal tomorrow
  • NextGen Acquisition Corp. II (NGCA) fell almost another 4% ahead of its vote with Virgin Orbit to close at just $9.35. Remember they announced an additional $100M in financing last week.  

And a third for Thursday, that is unless of course CF Acquisition Corp V (CFV) postpones its vote for Satellogic once again. 

Pre-deal SPACs ticked slightly lower today and are now trading at an average of $9.81, while announced-deal SPACs are faring slightly better at $10.36. Still, both are far cries from earlier in the year when everything was at a premium. 

Which brings us to a new trend, SPACs scrambling for additional deal financings to plug the almost inevitable holes caused by high-redemption SPACs. This additional financing is key to getting many deals closed and getting target companies the cash they need to operate and fund growth. 

SPAC Additional Financings

SPACs and companies continue to scramble for additional financing ahead of merger votes in a heightened redemption environment. Oftentimes this has come in the form of additional PIPEs, converts, and non-redemption agreements. There have been at least 4 such agreements in the last few days. 

Rigetti Computing and Supernova Partners Acquisition Company II (SNII) announced an additional, $45M in PIPE financing, at a premium price of $10.25. The original $102.5M PIPE was priced at $10, this combined with the new commitment brings ~$148M of committed capital to the transaction. Lansdowne Partners, Bessemer, Franklin Templeton and others are betting big on quantum computing. 

Rigetti and Supernova announced their deal in October. We recently spoke to CEO Chad Rigetti on all things quantum computing and the SPAC deal. 

Queen's Gambit Growth Capital (GMBT) filed that it received an additional $10.5M PIPE for its deal with Swvl

Zanite Acquisition Corp (ZNTE) received an additional $10M PIPE investment for its deal with Eve. Interesting here is that the Eve deal was just announced last week on 12/21. This brings total PIPE size to $315M. 

Merida Merger Acquisition (MCMJ) announced non-redemption agreements with certain of its shareholders to 1) gift some founder shares in exchange for not redeeming and 2) option to sell those shares back to the company in 3 months. 

Elsewhere in SPACs

CompoSecure and RomanDBDR Tech Acquisition Corp. (DBDR) closed their SPAC merger. Shares will trade as CMPO starting tomorrow. DBDR closed at $9.95 today. 

Today's Price Action

Biggest Gainers

6.27% ~ $ 9.49 | ATHN - Athena Technology Acquisition Corp. (Announced)
2.35% ~ $ 11.75 | MEKA - MELI Kaszek Pioneer Corp (Pre-Deal)
1.90% ~ $ 10.17 | GTAC - Global Technology Acquisition Corp. I (Pre-Deal)
1.41% ~ $ 10.04 | ICNC - Iconic Sports Acquisition Corp. (Pre-Deal)
.94% ~ $ 10.76 | ESSC - East Stone Acquisition Corporation (Announced)
.82% ~ $ 9.80 | DISA - Disruptive Acquisition Corp I (Pre-Deal)
.77% ~ $ 9.93 | SAMA - Schultze Special Purpose Acquisition Corp. II (Pre-Deal)
.72% ~ $ 9.77 | EPWR - Empowerment & Inclusion Capital I Corp (Pre-Deal)
.72% ~ $ 9.86 | FNVT - Finnovate Acquisition Corp. (Pre-Deal)
.71% ~ $ 9.90 | TCVA - TCV Acquisition Corp. (Pre-Deal)
.71% ~ $ 9.92 | PHYT - Pyrophyte Acquisition Corp. (Pre-Deal)
.71% ~ $ 9.97 | NOVV - Nova Vision Acquisition Corp (Pre-Deal)
.68% ~ $ 10.30 | GIIX - GORES HOLDINGS VIII, INC. (Announced)
.65% ~ $ 9.85 | LUXA - Lux Health Tech Acquisition Corp (Pre-Deal)
.64% ~ $ 10.22 | GLSPT - Global SPAC Partners Co. (Announced)
.62% ~ $ 9.75 | GPAC - Global Partner Acquisition Corp II (Pre-Deal)
.62% ~ $ 9.77 | BITE - Bite Acquisition Corp. (Pre-Deal)
.62% ~ $ 9.80 | GFX - Golden Falcon Acquisition Corp. (Pre-Deal)
.61% ~ $ 9.82 | GSEV - Gores Holdings VII (Pre-Deal)
.61% ~ $ 9.85 | PIAI - Prime Impact Acquisition I (Pre-Deal)

Biggest Losers

-4.42% ~ $ 9.94 | DTRT - DTRT Health Acquisition Corp. (Pre-Deal)
-4.25% ~ $ 10.15 | ATSPT - Archimedes Tech SPAC Partners Co (Announced)
-3.68% ~ $ 11.27 | CFVI - CF Acquisition Corp. VI (Announced)
-3.61% ~ $ 9.35 | NGCA - NextGen Acquisition Corp. II (Announced)
-3.05% ~ $ 9.84 | AEAE - AltEnergy Acquisition Corp (Pre-Deal)
-2.85% ~ $ 9.90 | ESAC - ESGEN Acquisition Corp (Pre-Deal)
-2.79% ~ $ 9.75 | MBSC - M3-Brigade Acquisition III Corp. (Pre-Deal)
-2.73% ~ $ 11.03 | XPDI - Power & Digital Infrastructure Acquisition Corp. (Announced)
-2.25% ~ $ 10.44 | CND - Concord Acquisition Corp (Announced)
-2.01% ~ $ 9.75 | CFV - CF Acquisition Corp. V (Announced)
-1.87% ~ $ 9.95 | LVAC - LAVA Medtech Acquisition Corp. (Pre-Deal)
-1.28% ~ $ 10.04 | FLYA - SOAR Technology Acquisition Corp. (Pre-Deal)
-1.18% ~ $ 10.02 | SCMA - Seaport Calibre Materials Acquisition Corp. (Pre-Deal)
-1.11% ~ $ 9.78 | BLSA - BCLS Acquisition Corp. (Pre-Deal)
-1.09% ~ $ 9.95 | OTEC - OceanTech Acquisitions I Corp. (Pre-Deal)
-1.01% ~ $ 9.85 | ENTF - Enterprise 4.0 Technology Acquisition Corp (Pre-Deal)
-.91% ~ $ 9.82 | GTPA - Gores Technology Partners, Inc (Pre-Deal)
-.81% ~ $ 9.77 | RACB - Research Alliance Corp. II (Pre-Deal)
-.79% ~ $ 10.03 | SBEA - SilverBox Engaged Merger Corp I (Announced)
-.78% ~ $ 11.46 | GGPI - Gores Guggenheim, Inc (Announced)

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