Big SPAC Redemptions and Price Jumps Continue

DFNS closed its merger with IronNet today and saw ~93% redemptions leaving only $11.7M in trust. It is up more aftermarket and trades as IRNT starting Friday.
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For the past couple of days now we've been tracking big SPAC stock price spikes that are coming along with big redemptions. For example, Locust Walk Acquisition's (LWAC) near record, and stunning, 97% redemption from its SPAC trust following the eFFECTOR vote followed by a price surge. You can also look to the Helbiz/Greenvision for another example.

Now, we have LGL Systems Acquisition (DFNS), retired General Keith Alexander's SPAC, that today completed its merger with IronNet Cybersecurity (it will trade as IRNT on the NYSE starting Friday). On Thursday it traded up over 25% and has been trading up another ~14% after market (as of this writing).

SPAC Stocks with High Redemptions are seeing surges in price

SPAC Stocks with High Redemptions are seeing surges in price

At least some of the movement is driven by the small float (e.g. there were just around ~500k shares or so for LWAC in trading), but there may be more to the story. For example, some are suggesting that short squeezes are also driving it. Yesterday we suggested paying attention to upcoming merger votes that are trading at heavy discounts to see if this market dynamic continues. As of today, it looks like it will, so savvy investors will likely be looking to take advantage of this play before it stalls out.

But, take care, as wild swings are sure to be present and the elevated price levels may not be sustainable. Prime example, HLBZ closed down today to $6.40.

SPAC stock price spikes on big redemptions probably won't be lasting...see HLBZ

SPAC stock price spikes on big redemptions probably won't be lasting...see HLBZ

SPAC Votes

The LWAC dynamic definitely continued today with DFNS. Will we see the same with Friday's votes? Blue Water Acquisition (BLUW) led the decliners today dropping 9% (and down more after hours).

Aug 27 | $ 9.50 | BLUW - Blue Water Acquisition Corporation --> Clarus Therapeutics
Aug 27 | $ 10.17 | TWCT - TWC Tech Holdings II Corp --> Cellebrite

SPAC Merger

Thursday morning Magnum Opus (OPA) announced it is taking Forbes Public. The deal is valued at $630M and it has a $400M PIPE. However, despite saying there are "top tier" investors in the PIPE, they did not disclose the actual investors.

Some investors will look hard at the revenue projections as 2020 actuals were a drop from 2019 and its unclear what the pre-pandemic revenue was and why it would have dropped during a period where everyone was glued to their screens looking for content. 

Overall, recently announced SPAC deals have been suffering just like the rest of the SPAC market.

Aug 26 | $ 9.85 | 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 | $ 9.85 | NGCA - NextGen Acquisition Corp. II --> Virgin Orbit
Aug 18 | $ 10.01 | ADF - Aldel Financial Inc. --> Hagerty
Aug 18 | $ 9.82 | IPVF - InterPrivate III Financial Partners Inc. --> Aspiration Partners
Aug 16 | $ 9.82 | MBAC - M3-Brigade Acquisition II Corp --> Syniverse Corp
Aug 16 | $ 9.77 | SLCR - Silver Crest Acquisition Corporation --> Tim Hortons China
Aug 13 | $ 9.79 | MTAC - MedTech Acquisition Corporation --> Memic Innovative Surgery Ltd.
Aug 12 | $ 9.80 | FRSG - First Reserve Sustainable Growth Corp --> EO Charging
Aug 11 | $ 9.85 | EUSG - European Sustainable Growth Acquisition Corp. --> ADS-TEC Energy GmbH
Aug 10 | $ 9.77 | ASAX - Astrea Acquisition Corp. --> HotelPlanner
Aug 10 | $ 9.82 | ENVI - Environmental Impact Acquisition Corp. --> Greenlight Biosciences Inc.
Aug 09 | $ 9.94 | MCMJ - Merida Merger Corp. I --> Leafly Holdings, Inc.
Aug 09 | $ 9.89 | MPAC - Model Performance Acquisition Corp --> MultiMetaVerse Inc.
Aug 06 | $ 9.85 | CMLT - CM Life Sciences III Inc. --> EQRx, Inc.
Aug 05 | $ 9.85 | GCAC - Growth Capital Acquisition Corp. --> Cepton Technologies, Inc
Aug 04 | $ 9.88 | FTAA - FTAC Athena Acquisition Corp. --> Pico
Aug 02 | $ 9.86 | VPCB - VPC Impact Acquisition Holdings II --> Kredivo
Aug 02 | $ 10.08 | YSAC - Yellowstone Acquisition Co --> Sky Harbour LLC

Today's SPAC Price Action

As noted above, the biggest "SPAC" gainer today was LGL Systems Acquisition (DFNS) on its merger vote, but we don't include it below as that is tracking only active SPACs and tomorrow DFNS becomes IRNT.

Biggest Gainers
4.62% ~ $ 10.42 | SV - Spring Valley Acquisition Corp (Announced)
2.51% ~ $ 10.23 | GLTA - Galata Acquisition Corp (Pre-Deal)
2.28% ~ $ 11.66 | FST - FAST ACQ CP (Announced)
1.86% ~ $ 10.39 | CND - Concord Acquisition Corp (Announced)
1.64% ~ $ 11.14 | TDAC - Trident Acquisitions Corp (Announced)
1.29% ~ $ 10.17 | TWCT - TWC Tech Holdings II Corp (Announced)
1.03% ~ $ 9.85 | OPA - Magnum Opus Acquisition Limited (Announced)
.93% ~ $ 9.79 | BLSA - BCLS Acquisition Corp. (Pre-Deal)
.93% ~ $ 9.80 | TMKR - Tastemaker Acquisition Corp (Pre-Deal)
.88% ~ $ 9.71 | TIOA - Tio Tech A (Pre-Deal)
.83% ~ $ 9.70 | IBER - Ibere Pharmaceuticals (Pre-Deal)
.83% ~ $ 9.71 | ESM - ESM Acquisition Corporation (Pre-Deal)
.83% ~ $ 9.74 | KAII - Kismet Acquisition Two Corp. (Pre-Deal)
.81% ~ $ 9.98 | GSAH - GS Acquisition Holdings Corp II (Announced)
.72% ~ $ 9.85 | GGPI - Gores Guggenheim, Inc (Pre-Deal)
.68% ~ $ 10.41 | AGC - Altimeter Growth Corp. (Announced)
.66% ~ $ 10.02 | CHAQ - Chardan Healthcare Acquisition 2 Corp. (Announced)
.62% ~ $ 9.71 | CFVI - CF Acquisition Corp. VI (Pre-Deal)
.62% ~ $ 9.71 | LOKM - Live Oak Mobility Acquisition Corp. (Pre-Deal)
.62% ~ $ 9.72 | CPAR - Catalyst Partners Acquisition Corp. (Pre-Deal)

Biggest Losers
-9.09% ~ $ 9.50 | BLUW - Blue Water Acquisition Corporation (Announced)
-3.80% ~ $ 9.62 | SHQA - Shelter Acquisition Corporation I (Pre-Deal)
-3.13% ~ $ 16.09 | RICE - Rice Acquisition Corp. (Announced)
-2.70% ~ $ 9.73 | ROSS - Ross Acquisition Corp II (Pre-Deal)
-2.30% ~ $ 9.75 | MCAF - Mountain Crest Acquisition Corp. IV (Pre-Deal)
-2.08% ~ $ 9.65 | ZT - Zimmer Energy Transition Acquisition Corp. (Pre-Deal)
-2.06% ~ $ 9.50 | FVIV - Fortress Value Acquisition Corp. IV (Pre-Deal)
-1.23% ~ $ 9.67 | EOCW - Elliott Opportunity II Corp. (Pre-Deal)
-1.13% ~ $ 9.85 | CORS - Corsair Partnering Corporation (Pre-Deal)
-.93% ~ $ 9.61 | SCOB - ScION Tech Growth II (Pre-Deal)
-.92% ~ $ 9.65 | ACQR - Independence Holdings Corp (Pre-Deal)
-.88% ~ $ 10.13 | FTCV - FinTech Acquisition Corp. V (Announced)
-.83% ~ $ 10.81 | LEGO - LEGATO MERGER CORP. (Announced)
-.79% ~ $ 10.08 | XPDI - Power & Digital Infrastructure Acquisition Corp. (Announced)
-.72% ~ $ 9.66 | VAQC - Vector Acquisition Corporation II (Pre-Deal)
-.72% ~ $ 9.67 | MACC - Mission Advancement Corp. (Pre-Deal)
-.72% ~ $ 9.69 | SRSA - Sarissa Capital Acquisition Corp (Pre-Deal)
-.71% ~ $ 9.80 | FOXW - FoxWayne Enterprises Acquisition Corp. (Pre-Deal)
-.62% ~ $ 9.63 | SBII - Sandbridge X2 Corp (Pre-Deal)
-.62% ~ $ 9.66 | FLAC - Frazier Lifesciences Acquisition Corporation (Pre-Deal)

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

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