SPAC from the Dead? What SPAC Investors Need to Know for Wednesday

Signs of life are showing up in the SPAC market this week. MUDS / TOPPS +16% on announcement, CM Life Sciences III IPO (CMLTU) upsized to $480m, DMYD crushing it, and even CCIV with a rally.
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A few data points as we get setup for the SPAC trading day:

  1. Deals are being announced, and if good, are being rewarded. See MUDS / TOPPS.
  2. SPAC IPO pricings are trickling in and, if the sponsor is strong, you can see an upsized IPO. See CM Life Sciences III (CMLTU) which starts trading today and is upsized from to $480mm. The CM Life Sciences / Keith Meister / Casdin team is really strong and this is one to watch if you can get in at the right price.
  3. Good deals w/ good execution are getting rewarded. See DMYD / Genius Sports which is up over 50% for the month following their deal with the NFL.
  4. "Peak SPAC" stocks like CCIV / Lucid (up 5.5% this month) haven't continued their rapid descent, but seem instead to have stabilized. 

So, what does it all mean for SPAC investors? 

Our take is that we avoided the worst case scenario of the SPAC pendulum swinging back from "peak SPAC" into a position just as extreme, but on the downside. SPAC investors that are patient, strategic and play for yield + optionality should be rewarded with good returns. Investors will continue to look for pre-deal SPACs below $10 that they can cheaply add to their basket and consider announced deal SPACs with strong sponsors and narratives that could produce upside on great execution news (e.g. DMYD).

Biggest SPAC Discounts
-3.80% ~ $ 9.62 | AGAC - African Gold Acquisition Corporation (Pre-Deal)
-3.64% ~ $ 9.64 | EQHA - EQ Health Acquisition Corp (Pre-Deal)
-3.50% ~ $ 9.65 | ITQ - Itiquira Acquisition Corp. (Pre-Deal)
-3.50% ~ $ 9.65 | OSTR - Oyster Enterprises Acquisition Corp. (Pre-Deal)
-3.30% ~ $ 9.67 | AEAC - Authentic Equity Acquisition Corp. (Pre-Deal)
-3.30% ~ $ 9.67 | COVA - Crescent Cove Acquisition Corp. (Pre-Deal)
-3.30% ~ $ 9.67 | MDH - MDH Acquisition Corp. (Pre-Deal)
-3.20% ~ $ 9.68 | ENVI - Environmental Impact Acquisition Corp. (Pre-Deal)
-3.10% ~ $ 9.69 | VOSO - Virtuoso Acquisition Corp. (Pre-Deal)
-3.00% ~ $ 9.70 | PUCK - Goal Acquisitions Corp. (Pre-Deal)
-3.00% ~ $ 9.70 | DNZ - D and Z Media Acquisition Corp. (Pre-Deal)
-3.00% ~ $ 9.70 | CAHC - CA Healthcare Acquisition Corp. (**Announced this morning**)
-3.00% ~ $ 9.70 | TLGA - TLG Acquisition One Corp. (Pre-Deal)
-3.00% ~ $ 9.70 | BIOT - Biotech Acquisition Company (Pre-Deal)

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