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Two New SPAC Deals amid a Sleepy Market

Aldel Financial and InterPrivate 3 both announced definitive agreements while the IPO market remains shut and not many positives are being touted in SPACs.

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It's officially the dog days of Summer and the SPAC IPO market is shut. With no new deals priced yet thus far this week, and we can't see a catalyst to reverse that trend in the near term, it almost feels like a "let's wait until after Labor Day" dynamic for the capital markets to re-open. 

That being said, there has still been some light activity in M&A land with 2 new deals announced this morning and the de-SPAC train rolls on with 4 SPAC votes today, all expecting heavy redemptions. 

Thus, no sleep for SPAC participants despite a lack of enthusiasm. Negative press continues to cloud the asset class with many new De-SPACs reporting less than stellar earnings (and slashing guidance) and a fresh lawsuit brought against Pershing Square Tontine Holdings. Will there be a positive catalyst to reverse the tide? 

New SPAC Deals

This morning began with Aldel Financial (ADF) striking a deal with specialty auto insurance provider Hagerty valuing them at over $3B. The financing includes a massive $704M PIPE (SPAC trust is just $116M) backed by the likes of State Farm and Markel. The market reacted nicely and ADF rose +2.15% on the day to $9.96. 

See the full deal overview here

InterPrivate III Financial Partners (IPVF) struck a deal with ESG-focused fintech Aspiration in a deal valued at $2.3B. The deal includes a $200M PIPE that counts music superstar Drake as an investor. IPVF has nudged higher in the after-market to $9.95. 

SPAC Votes + Redemptions

Surrozen (SRZN) - f/k/a Consonance-HFW Acquisition Corp - reported its final redemption numbers bringing a total of 84% redemptions. Their merger vote was last week. 

Today saw 4 SPACs hold their votes:

NGAC - NextGen Acquisition Corp --> Xos, Inc. | approved with $299M in redemptions or ~79% of its trust
AJAX - Ajax I --> Cazoo | early reported their redemptions yesterday, $580M or ~70% of its trust
LIVK - LIV Capital Acquisition Corp. --> AgileThought
KSMT - KISMET ACQ ONE --> Nexters Global Limited 

Waiting on redemption figures from both LIVK and KSMT, and would expect to see a substantial amount of redemptions giving where both stocks are trading. 

Two more votes left this week, both on Friday: 

Aug 20 | $ 10.10 | VACQ - Vector Acquisition Corp --> Rocket Lab
Aug 20 | $ 9.36 | SV - Spring Valley Acquisition Corp --> AeroFarms

Today's Price Action

Biggest Gainers

6.24% ~ $ 9.20 | NGAC - NextGen Acquisition Corp (Announced)
2.96% ~ $ 9.93 | JUGG - Jaws Juggernaut Acquisition Corporation (Pre-Deal)
2.46% ~ $ 9.99 | ADF - Aldel Financial Inc. (Announced)
2.28% ~ $ 10.33 | MUDS - Mudrick Capital Acquisition Corporation II (Announced)
1.86% ~ $ 9.85 | ITHX - ITHAX Acquisition Corp. (Pre-Deal)
1.77% ~ $ 9.75 | STRE - Supernova Partners Acquisition Company III, Ltd (Pre-Deal)
1.57% ~ $ 11.68 | LEGO - LEGATO MERGER CORP. (Announced)
1.44% ~ $ 9.83 | RACB - Research Alliance Corp. II (Pre-Deal)
1.13% ~ $ 9.85 | HSAQ - Health Sciences Acquisitions Corporation 2 (Pre-Deal)
1.12% ~ $ 9.00 | RMGB - RMG Acquisition Corporation II (Announced)
1.04% ~ $ 9.76 | DYNS - Dynamics Special Purpose Corp. (Pre-Deal)
1.03% ~ $ 9.78 | IBER - Ibere Pharmaceuticals (Pre-Deal)
1.02% ~ $ 9.80 | WPCA - Warburg Pincus Capital Corporation I—A (Pre-Deal)
.96% ~ $ 10.54 | AGC - Altimeter Growth Corp. (Announced)
.83% ~ $ 9.75 | NGC - Northern Genesis Acquisition Corp. III (Pre-Deal)
.82% ~ $ 9.85 | SRSA - Sarissa Capital Acquisition Corp (Pre-Deal)
.79% ~ $ 10.24 | FTCV - FinTech Acquisition Corp. V (Announced)
.71% ~ $ 9.90 | PFDR - Pathfinder Acquisition Corporation (Announced)

Biggest Losers

-6.85% ~ $ 8.29 | AJAX - Ajax I (Announced)
-5.00% ~ $ 15.20 | RICE - Rice Acquisition Corp. (Announced)
-4.30% ~ $ 10.67 | CMII - CM Life Sciences II Inc. (Announced)
-4.07% ~ $ 11.80 | FWAA - Fifth Wall Acquisition Corp. I (Announced)
-2.70% ~ $ 9.73 | MITA - Coliseum Acquisition Corp. (Pre-Deal)
-2.66% ~ $ 9.65 | ORIA - Orion Biotech Opportunities Corp. (Pre-Deal)
-1.82% ~ $ 9.70 | EPWR - Empowerment & Inclusion Capital I Corp (Pre-Deal)
-1.78% ~ $ 11.61 | FST - FAST ACQ CP (Announced)
-1.72% ~ $ 9.72 | KSMT - KISMET ACQ ONE (Announced)
-1.10% ~ $ 9.87 | LSAQ - LIFE SCI ACQ II (Announced)
-1.03% ~ $ 9.62 | AMPI - Advanced Merger Partners, Inc. (Pre-Deal)
-.99% ~ $ 10.02 | XPDI - Power & Digital Infrastructure Acquisition Corp. (Announced)
-.92% ~ $ 9.68 | MACC - Mission Advancement Corp. (Pre-Deal)
-.90% ~ $ 9.90 | PANA - Panacea Acquisition Corp. II (Pre-Deal)
-.82% ~ $ 9.63 | SCLE - Broadscale Acquisition Corp (Pre-Deal)
-.82% ~ $ 9.65 | CFVI - CF Acquisition Corp. VI (Pre-Deal)
-.82% ~ $ 9.65 | HHLA - HH&L Acquisition Co. (Pre-Deal)
-.77% ~ $ 10.25 | LEAP - Ribbit LEAP Ltd (Pre-Deal)

More from Boardroom Alpha

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