Shareholder approval of SPAC mergers are almost a check-the-box formality these days, provided SPAC sponsors can get enough of a quorum to actually pay attention and vote their shares. However, important to note that shareholders can both a) vote in favor of a merger AND b) redeem their shares at the same time. Historically it was a common trade: buy SPACs at IPO, redeem shares at merger and hang onto warrants for the option value and upside.
Though when the market was at peak SPAC, and shares were oftentimes well above NAV, redemption didn't make much sense vs. simply selling in secondary for a much higher price. Now, as the SPAC market is behaving more rationally and prices are closer to NAV, we're seeing more instances of higher shareholder redemptions. This can have important implications on M&A financings - think minimum cash consideration for targets and/or larger sponsor redemption backstops... not to mention the perception of a less-favorable deal.
We'll keep an eye on this trend. Two recent large redemptions were from FAII and GIX:
Fortress Value Acquisition Corp II (FAII) rose over 5% today after announcing that its shareholders approved its deal with ATI Physical Therapy. However, they also disclosed that shareholders elected to redeem ~26% of shares, or around $90M, in connection with the merger. FAII will trade as ATIP on NYSE tomorrow, 6/17.
UpHealth, the SPAC f/k/a GigCapital2 also disclosed in a securities filing that its shareholders redeemed upwards of $94M in connection with its merger, which is over 50% of their total trust value.
Elsewhere in SPACs...
23andMe closed its business combination with VG Acquisition Corp. (VGAC) and will trade as ME on Nasdaq starting tomorrow, 6/17.
Roth CH Acquisition III (ROCR) rose 2.17% today after announcing a deal to take QualTek public.
- Rice Acquisition Corp. II (RONI/U) had a nice debut, rising +1.4% to $10.14
- Zimmer Energy Transition (ZTAQ/U) also traded up +0.5% to $10.05
Upcoming Merger Votes
Jun 17 | $ 9.83 | ACAC - Acies Acquisition Corp --> PlayStudios, Inc.
Jun 17 | $ 9.79 | HEC - Hudson Executive Investment Corp --> Talkspace
Jun 22 | $ 9.99 | TBA - Thoma Bravo Advantage --> ironSource
Jun 22 | $ 12.10 | FTIV - FinTech Acquisition Corp. IV --> Perella Weinberg Partners LLC
Jun 23 | $ 10.00 | AACQ - Artius Acquisition Inc. --> Origin Materials
Jun 23 | $ 10.01 | FTOC - FTAC Olympus Acquisition Corp --> Payoneer Inc.
Jun 24 | $ 9.97 | FIII - Forum Merger III Corporation --> Electric Last Mile, Inc.
Jun 24 | $ 10.02 | FRX - Forest Road Acquisition Corp --> Beachbody, LLC
Jun 28 | $ 10.25 | IACA - ION Acquisition Corp 1 Ltd --> Taboola
Jun 29 | $ 10.20 | RACA - Therapeutics Acquisition Corp --> POINT Biopharma
Jun 29 | $ 10.00 | FCAC - Falcon Capital Acquisition Corp --> sharecare
Jun 29 | $ 14.46 | CLII - Climate Change Crisis Real Impact I Acquisition Corp --> EVgo
Jun 30 | $ 11.57 | APXT - Apex Technology Acquisition Corporation --> AvePoint, Inc.
Jun 30 | $ 10.93 | HOL - Holicity Inc --> Astra
Jun 30 | $ 10.10 | WPF - Foley Trasimene Acquisition Corp. --> Alight Solutions
Jun 30 | $ 10.05 | ALUS - Alussa Energy Acquisition Corp --> FREYR
Today's Biggest Gainers
6.32% ~ $ 24.04 | CCIV - Churchill Capital Corp IV (Announced)
4.71% ~ $ 14.46 | CLII - Climate Change Crisis Real Impact I Acquisition Corp (Announced)
3.19% ~ $ 10.99 | VGAC - VG Acquisition Corp (Announced)
3.05% ~ $ 10.80 | ARYD - ARYA Sciences Acquisition Corp IV (Pre-Deal)
3.04% ~ $ 12.21 | TPGY - TPG Pace Beneficial Finance Corp (Announced)
2.64% ~ $ 12.05 | CMLF - CM Life Sciences Inc (Announced)
2.44% ~ $ 10.93 | HOL - Holicity Inc (Announced)
2.16% ~ $ 11.80 | AGC - ALTIMETER GROWTH CORP (Announced)
1.75% ~ $ 9.90 | ROCR - ROTH CH ACQUISITION III CO (Announced)
1.64% ~ $ 9.93 | ACQR - Independence Holdings Corp (Pre-Deal)
1.63% ~ $ 10.00 | SRSA - Sarissa Capital Acquisition Corp (Pre-Deal)
1.58% ~ $ 11.57 | APXT - Apex Technology Acquisition Corporation (Announced)
1.34% ~ $ 10.59 | DCRC - Decarbonization Plus Acquisition Corporation III (Announced)
1.23% ~ $ 9.86 | PFDR - Pathfinder Acquisition Corporation (Pre-Deal)
1.17% ~ $ 12.10 | LCY - Landcadia Holdings III Inc (Announced)
.94% ~ $ 11.85 | FTCV - FinTech Acquisition Corp. V (Announced)
Today's Biggest Losers
-3.76% ~ $ 12.28 | THCB - Tuscan Holdings Corp. (Announced)
-3.25% ~ $ 9.81 | NGC - Northern Genesis Acquisition Corp. III (Pre-Deal)
-3.23% ~ $ 11.40 | PDAC - Peridot Acquisition Corp (Announced)
-3.20% ~ $ 12.10 | FTIV - FinTech Acquisition Corp. IV (Announced)
-3.09% ~ $ 12.84 | PSAC - Property Solutions Acquisition Corp (Announced)
-2.87% ~ $ 11.52 | BOWX - BowX Acquisition Corp (Announced)
-2.66% ~ $ 10.25 | IACA - ION Acquisition Corp 1 Ltd (Announced)
-2.29% ~ $ 14.51 | GHVI - Gores Holdings VI Inc (Announced)
-1.95% ~ $ 12.04 | TDAC - Trident Acquisitions Corp (Announced)
-1.89% ~ $ 11.41 | MUDS - Mudrick Capital Acquisition Corporation II (Announced)
-1.75% ~ $ 11.81 | SRAC - Stable Road Acquisition Corp. (Announced)
-1.58% ~ $ 11.22 | BCTG - BCTG Acquisition Corp. (Announced)
-1.46% ~ $ 10.10 | WPF - Foley Trasimene Acquisition Corp. (Announced)
-1.42% ~ $ 9.75 | EVOJ - Evo Acquisition Corp. (Pre-Deal)
-1.39% ~ $ 9.91 | ARYA - Arya Sciences Acquisition Corp III (Announced)
-1.32% ~ $ 9.75 | TIOA - Tio Tech A (Pre-Deal)
-1.31% ~ $ 11.30 | FWAA - Fifth Wall Acquisition Corp. I (Announced)
-1.30% ~ $ 9.85 | DDMX - DD3 Acquisition Corp. II (Pre-Deal)
-1.30% ~ $ 9.89 | CRSA - Crescent Acquisition Corp (Announced)
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.
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- Lordstown (RIDE) CEO Steve Burns Resigns; Boxed + SVOK
- Gamestop's Big Moves; Director/Officer Moves w/o June 11
- De-SPACs Are Popping, Another eVTOL Merger
- Amid Positive SPAC Momentum, IPOs Returned Too
- The SPAC Tide is Turning Positive
- Less Angst in SPAC Land + Wallbox in a $1.5B SPAC Deal
- SPACs Rise, RIDE Plunges on Going Concern
- SPAC Narrative Changing: CLOV Surges in Pre-Market, CCIV Surged Monday
- VPC Impact Drops on Dave Deal, More SPAC Votes Ahead
- A Big Week for SPACs. Will the Narrative Continue to Improve?
- Ackman Rewrites the SPAC "Merger", De-SPACs are Heating Up
- 2 SPACs Vote Tomorrow amid June Merger Frenzy
- SPAC Narrative Changing with De-SPAC Success and New Chamath SPACs?
- Hot Start for SoFi, while MUDS Takes a Hit on AMC and Candy Digital News
- SPAC Activity Picks Up into Memorial Day, Remain Heavily Discounted
- IPOE Passes Vote as Chamath Pens Op-Ed, PACX Rises on Acorns Deal
- Chamath's IPOE Shareholders Vote Today on SoFi Merger; Acorns and eFFECTOR Deals
(Disclaimers: this is not investment advice. The author may be long one or more stocks mentioned in this report.)