SPACs Hit Hard on Merger Monday

Four deals were announced, but performance was underwhelming. Given the overall market's bad day, it's no surprise 75% of pre-deal SPACs declined and now average $9.87.
Author:
Publish date:

** Get the Daily SPAC Newsletter **

Merger Monday returned with four new announced SPAC deals, but ultimately ended in a bit of a thud as all three SPAC stocks that announced this morning fell on the day. More broadly, 75% of Pre-Deal SPACs declined, closing at an average of $9.87.

Today's Morning Merger Duds:

- Star Peak II (STPC) -2.7% to $9.93
- Hennessy Capital 5 (HCIC) -1.0% to $9.90
- LIV Capital (LIVK) -0.1% to $9.99

The deal selloffs came amid a broader market decline as well - so it's tough to attribute the lack of performance solely on deal conviction - yet most of newly announced deals have not been trading with much enthusiasm. However, as we've been saying, given there are 420+ SPACs out there who need to find targets, continue to expect the deals to come if they are there to be made for the sponsors.  

After the market closed, investors got the fourth deal announcement with Bill Foley's Austerlitz Acquisition (AUS) striking a deal to take Wynn Resorts  (WYNN) - Get Report subsidiary Wynn Interactive public in a deal that values the online gaming arm of Wynn ~$3.2B EV. The deal does not include a PIPE, but SPAC Sponsor Cannae Holdings will backstop any share redemptions as part of the merger consideration. AUS is up ~3% in post-market trading. 

Recently Announced SPAC M&A
Recently announced deals continue to struggle and many are trading well below $10. Today's deals, unfortunately, don't look like they will be the exception.

May 10 | $ 9.90 | HCIC - Hennessy Capital Investment Corp. V --> Plus
May 10 | $ 9.89 | AUS - Austerlitz Acquisition Corporation I --> Wynn Interactive
May 10 | $ 9.93 | STPC - Star Peak Corp II --> Benson Hill, Inc.
May 10 | $ 9.96 | LIVK - LIV Capital Acquisition Corp. --> AgileThought
May 07 | $ 10.30 | LSAQ - LIFE SCI ACQ II --> Science 37
May 07 | $ 9.86 | STWO - ACON S2 Acquisition Corp --> ESS TECHNOLOGY
May 07 | $ 9.87 | LOKB - Live Oak Acquisition Corp. II --> Navitas Semiconductor
May 06 | $ 9.91 | AMHC - Amplitude Healthcare Acquisition Corporation --> Jasper Therapeutics
May 03 | $ 9.93 | MAAC - Montes Archimedes Acquisition Corp --> Roivant Sciences

VICE Rumors Resurface

Rumors of VICE Media merging with 7GC & Co. Holdings (VII) have heated up again about a month after the rumors first surfaced. 7G, co-sponsored by 7GC and Hennessy Capital, dipped slightly on the day -0.1%. Its warrants, which were heavily discounted, jumped 20% to $0.85. 

Hennessy Capital's Hennessy Capital Investment Corp. V (HCIC) announced a different merger earlier today to take Plus public.

Biggest SPAC Gainers

8.70% ~ $ 11.75 | BCTG - BCTG Acquisition Corp. (Announced)
3.02% ~ $ 9.90 | ATHN - Athena Technology Acquisition Corp. (Pre-Deal)
2.76% ~ $ 11.18 | FTCV - FinTech Acquisition Corp. V (Announced)
2.24% ~ $ 10.02 | CLIM - Climate Real Impact Solutions II Acquisition Corporation (Pre-Deal)
1.75% ~ $ 9.88 | POW - Powered Brands (Pre-Deal)
1.59% ~ $ 9.90 | CFVI - CF Acquisition Corp. VI (Pre-Deal)
1.40% ~ $ 13.08 | LACQ - Leisure Acquisition Corp. (Announced)
1.33% ~ $ 11.47 | LCY - Landcadia Holdings III Inc (Announced)
1.21% ~ $ 10.07 | HZAC - HORIZON ACQ CP (Announced)
1.03% ~ $ 9.82 | SDAC - Sustainable Development Acquisition I Corp. (Pre-Deal)

Biggest SPAC Decliners

9.25% ~ $ 10.89 | CMII - CM Life Sciences II Inc. (Announced)
-8.45% ~ $ 11.05 | CMLF - CM Life Sciences Inc (Announced)
-5.78% ~ $ 15.00 | SSPK - Silver Spike Acquisition Corp. (Announced)
-5.45% ~ $ 12.50 | RSVA - Rodgers Silicon Valley Acquisition Corp (Announced)
-4.79% ~ $ 11.54 | THCB - Tuscan Holdings Corp. (Announced)
-4.73% ~ $ 11.48 | FSRV - FinServ Acquisition Corp (Announced)
-4.72% ~ $ 14.73 | TPGY - TPG Pace Beneficial Finance Corp (Announced)
-4.45% ~ $ 10.30 | LSAQ - LIFE SCI ACQ II (Announced)
-3.99% ~ $ 15.88 | MUDS - Mudrick Capital Acquisition Corporation II (Announced)
-3.91% ~ $ 31.97 | BRPA - Big Rock Partners Acquisition Corp (Announced)
-3.85% ~ $ 14.98 | ACTC - ArcLight Clean Transition Corp (Announced)
-3.69% ~ $ 11.22 | CLII - Climate Change Crisis Real Impact I Acquisition Corp (Announced)

More from Boardroom Alpha

For on-going tracking, analytics, and data on SPACs checkout Boardroom Alpha's SPAC Data and Analytics service.

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