SPACs Saved by...49 Law Firms?

In a mostly quiet week for SPACs the two most interesting things were the high redemption/short squeeze play and 49 law firms coming to the rescue of SPACs.
Author:
Publish date:

--------------------------
 Free SPAC Tools
--------------------------
  ** Daily SPAC Newsletter
  ** Full SPAC Listing

It was a quieter week in SPACs with limited deals, IPOs (thank goodness), and votes. The yield play remains the primary focus for many SPAC investors. Though some are looking at the opportunity from the recent high redemption/short squeeze play that has been happening around vote/redemptions (see: LWAC, DFNS, GRNV). While there seems to be an increasingly consistent, and big, SPAC stock price spike happening at that time, it also is short lived and investors should treat it with care.

Law Firms to the Rescue?

One of the more interesting events in SPAC land of late is the legal community cavalry coming to the aid of SPACs under legal threat from two professors -- Robert Jackson and John Morley. It started with their suit against Bill Ackman’s Pershing Square Tontine Holdings (PSTH) questioning whether it, and SPACs more generally, are in fact investment companies and should therefore fall under much different regulations. 

If the suit were to have merit it would certainly be a gut punch to SPACs and it is unclear how the market would shake out. But, much to the surprise of everyone, apparently there are 49 law firms that were willing to strongly push back on the professors and argue that there is no merit to their case. 

The SPAC Land community will be hoping these 49 firms are correct, but it's likely that there is a while, and some interesting back-and-forth, to go yet.

The FT has more details here.

SPAC Merger Announcements

No deals announced today and only 3 SPAC merger announcements this week as many take their last summer holiday days before Wall Street comes back from summer post labor day. Unsurprisingly, none of the new deals seem to have captured investors imagination as they remain (in almost all cases) firmly below $10. In part that is about the deals, but there is a significant, market-wide downward pressure on all SPACs that any SPAC/deal would find hard to shake.

So, yield investors will be looking to this bunch for a good, safe return by redeeming prior to ex-redemption. The expectation for most will be high redemptions, the only real question is whether the very short-term trade on limited float will still be there or if hedge funds and other investors will have washed that play out. 

Aug 26 | $ 9.87 | OPA - Magnum Opus Acquisition Limited --> Forbes Global Media Holdings Inc
Aug 25 | $ 10.00 | ACBA - Ace Global Business Acquisition Limited --> DDC Enterprise Limited
Aug 23 | $ 9.81 | NGCA - NextGen Acquisition Corp. II --> Virgin Orbit
Aug 18 | $ 10.02 | ADF - Aldel Financial Inc. --> Hagerty
Aug 18 | $ 9.82 | IPVF - InterPrivate III Financial Partners Inc. --> Aspiration Partners
Aug 16 | $ 9.78 | SLCR - Silver Crest Acquisition Corporation --> Tim Hortons China
Aug 16 | $ 9.81 | MBAC - M3-Brigade Acquisition II Corp --> Syniverse Corp
Aug 13 | $ 9.80 | MTAC - MedTech Acquisition Corporation --> Memic Innovative Surgery Ltd.
Aug 12 | $ 9.80 | FRSG - First Reserve Sustainable Growth Corp --> EO Charging
Aug 11 | $ 9.84 | EUSG - European Sustainable Growth Acquisition Corp. --> ADS-TEC Energy GmbH
Aug 10 | $ 9.77 | ASAX - Astrea Acquisition Corp. --> HotelPlanner
Aug 10 | $ 9.83 | ENVI - Environmental Impact Acquisition Corp. --> Greenlight Biosciences Inc.
Aug 09 | $ 9.96 | MCMJ - Merida Merger Corp. I --> Leafly Holdings, Inc.
Aug 09 | $ 9.89 | MPAC - Model Performance Acquisition Corp --> MultiMetaVerse Inc.
Aug 06 | $ 9.86 | CMLT - CM Life Sciences III Inc. --> EQRx, Inc.
Aug 05 | $ 9.85 | GCAC - Growth Capital Acquisition Corp. --> Cepton Technologies, Inc
Aug 04 | $ 9.87 | FTAA - FTAC Athena Acquisition Corp. --> Pico
Aug 02 | $ 10.09 | YSAC - Yellowstone Acquisition Co --> Sky Harbour LLC
Aug 02 | $ 9.81 | VPCB - VPC Impact Acquisition Holdings II --> Kredivo

SPAC Deal Votes

Both deal votes were approved today. BLUW shareholders approved the Clarus merger with 3,270,531 shares redeeming. That leaves $25.29M in trust after ~57% of shares redeemed. It will trade as CRXT once closed (timing not given). 

TWCT shareholders approved Cellebrite deal and will trade as CLBT starting on 8/31. No mention in the 8-k or press release regarding redemptions. These days that's not a great sign and investors will expect to see those details buried in a filing at some point next week.

SPAC IPOs

The market certainly didn't need them, but three more SPACs were priced this week... Even with an overfunded trust, SWSS is already down to $9.85 (hello yield investors). Overall, those SPAC IPOs that have come out in August are performing as one would expect in this environment. Many investors will be nervous that September, despite the market and the current challenges of getting a SPAC IPO'd, will see a flurry of new IPOs as bankers come back from their summer holidays.

Aug 25 | $ 9.85 | CCAI - Cascadia Acquisition Corp.
Aug 25 | $ 9.85 | SWSS - Springwater Special Situations Corp.
Aug 25 | $ 10.06 | MEOA - Minority Equality Opportunities Acquisition Inc.
Aug 19 | $ 9.98 | WAVC - Waverley Capital Acquisition Corp. 1
Aug 13 | $ 9.82 | APMI - AxonPrime Infrastructure Acquisition Corp
Aug 12 | $ 10.08 | KCGI - Kensington Capital Acquisition Corp. V
Aug 12 | $ 9.80 | JAQC - Jupiter Acquisition Corporation
Aug 12 | $ 9.92 | AACI - Armada Acquisition Corp. I
Aug 12 | $ 9.95 | CENQ - CENAQ Energy Corp.
Aug 11 | $ 10.07 | OXAC - Oxbridge Acquisition Corp.
Aug 11 | $ 9.98 | WQGA - World Quantum Growth Acquisition Corp
Aug 11 | $ 9.90 | AFTR - AfterNext HealthTech Acquisition Corp.
Aug 10 | $ 9.99 | VCXA - 10X Capital Venture Acquisition Corp. II
Aug 10 | $ 10.04 | DCRD - Decarbonization Plus Acquisition Corp IV
Aug 10 | $ 10.05 | PONO - PONO Capital Corp
Aug 10 | $ 9.96 | TPBA - TPB Acquisition Corporation I
Aug 10 | $ 10.11 | CNTQ - Chardan NexTech Acquisition 2 Corp.
Aug 09 | $ 10.03 | CPAA - Conyers Park III Acquisition Corp.
Aug 09 | $ 10.04 | ASPA - Abri SPAC I, Inc.
Aug 09 | $ 10.04 | AHPA - Avista Public Acquisition Corp. II
Aug 05 | $ 10.18 | NOVV - Nova Vision Acquisition Corp
Aug 05 | $ 9.93 | RVAC - Riverview Acquisition Corp.
Aug 05 | $ 10.03 | ROCG - Roth CH Acquisition IV Co.
Aug 04 | $ 10.02 | BWC - Blue Whale Acquisition Corp I
Aug 04 | $ 10.07 | GLEE - Gladstone Acquisition Corporation
Aug 03 | $ 9.88 | AMCI - AMCI Acquisition Corp. II
Aug 02 | $ 9.85 | HWEL - Healthwell Acquisition Corp. I

Today's SPAC Price Action

BLUW got hammered today as shareholders voted to approve the merger with Clarus. That follows a ~9% drop from Thursday. A rough couple of days for anyone who has decided to hold through the merger. TWCT fared better, but still dropped nearly 2% on the day. 

There isn't a lot of positive price action in the SPAC market these days and what little there isn't often due to excitement but rather limited volume and other technicals.

Biggest Losers
-11.79% ~ $ 8.38 | BLUW - Blue Water Acquisition Corporation (merger approved today)
-2.94% ~ $ 9.56 | FTVI - FinTech Acquisition Corp. VI (Pre-Deal)
-1.87% ~ $ 9.98 | TWCT - TWC Tech Holdings II Corp (merger approved today)
-1.82% ~ $ 10.23 | SV - Spring Valley Acquisition Corp (Announced)
-1.62% ~ $ 9.70 | GNAC - GROUP NINE ACQUISITION CORP. (Pre-Deal)
-1.35% ~ $ 9.73 | DRAY - Macondray Capital Acquisition Corp. I (Pre-Deal)
-1.18% ~ $ 15.90 | RICE - Rice Acquisition Corp. (Announced)
-1.03% ~ $ 9.61 | GOBI - Gobi Acquisition Corp. (Pre-Deal)
-.91% ~ $ 9.76 | CORS - Corsair Partnering Corporation (Pre-Deal)
-.88% ~ $ 9.62 | TIOA - Tio Tech A (Pre-Deal)
-.81% ~ $ 9.75 | PHIC - Population Health Investment Co Inc (Pre-Deal)
-.80% ~ $ 9.87 | SPNV - Supernova Partners Acquisition Company Inc (Announced)
-.79% ~ $ 10.01 | GNPK - Genesis Park Acquisition Corp (Announced)
-.72% ~ $ 9.65 | GAMC - Golden Arrow Merger Corp. (Pre-Deal)
-.70% ~ $ 9.91 | GSAH - GS Acquisition Holdings Corp II (Announced)
-.62% ~ $ 9.64 | TBCP - Thunder Bridge Capital Partners III Inc. (Pre-Deal)
-.61% ~ $ 9.71 | SVFB - SVF Investment Corp. 2 (Pre-Deal)
-.61% ~ $ 9.83 | CFV - CF Acquisition Corp. V (Announced)
-.61% ~ $ 9.84 | BTNB - Bridgetown 2 Holdings Limited (Announced)
-.55% ~ $ 9.67 | REVH - Revolution Healthcare Acquisition Corp. (Pre-Deal)

Biggest Gainers2.74% ~ $ 11.98 | FST - FAST ACQ CP (Announced)
2.51% ~ $ 10.23 | GLTA - Galata Acquisition Corp (Pre-Deal)
2.22% ~ $ 11.05 | LEGO - LEGATO MERGER CORP. (Announced)
1.97% ~ $ 9.83 | CLRM - Clarim Acquisition Corp. (Pre-Deal)
1.63% ~ $ 9.66 | FVIV - Fortress Value Acquisition Corp. IV (Pre-Deal)
1.54% ~ $ 9.80 | JUGG - Jaws Juggernaut Acquisition Corporation (Pre-Deal)
1.48% ~ $ 9.95 | CFFE - CF Acquisition Corp. VIII (Pre-Deal)
1.43% ~ $ 9.94 | FOXW - FoxWayne Enterprises Acquisition Corp. (Pre-Deal)
1.26% ~ $ 11.28 | TDAC - Trident Acquisitions Corp (Announced)
1.23% ~ $ 9.77 | ACQR - Independence Holdings Corp (Pre-Deal)
1.15% ~ $ 10.53 | AGC - Altimeter Growth Corp. (Announced)
1.07% ~ $ 10.41 | TPGY - TPG Pace Beneficial Finance Corp (Announced)
1.06% ~ $ 10.50 | CND - Concord Acquisition Corp (Announced)
.92% ~ $ 9.84 | MCAF - Mountain Crest Acquisition Corp. IV (Pre-Deal)
.92% ~ $ 9.89 | BSGA - Blue Safari Group Acquisition Corp (Pre-Deal)
.92% ~ $ 9.90 | KCAC - Kensington Capital Acquisition Corp. II (Announced)
.83% ~ $ 9.70 | IBER - Ibere Pharmaceuticals (Pre-Deal)
.83% ~ $ 9.71 | ESM - ESM Acquisition Corporation (Pre-Deal)
.83% ~ $ 9.71 | SBII - Sandbridge X2 Corp (Pre-Deal)
.83% ~ $ 9.74 | KAII - Kismet Acquisition Two Corp. (Pre-Deal)

More from Boardroom Alpha

More from Boardroom Alpha For ongoing tracking, analytics, and data on SPACs checkout Boardroom Alpha's SPAC Data and Analytics service.

See a full SPAC list here.

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

Daily SPAC Analysis also available at BoardroomAlpha.com