SPACs Searching for Momentum

While there has been a small uptick in recent SPAC activity, the market's malaise is likely to continue into May.

Author:
David Pogemiller
Publish date:
May 3, 2021

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Last week was disappointing for many SPAC investors as there was a slight uptick in activity -- 5 deals announced, 3 IPOs, and 5 new S-1's -- but, all lacked pop. Three out of the five deals ended Friday down and the other two are close to NAV:

May 03 | $ 9.86 | MAAC - Montes Archimedes Acquisition Corp --> Roivant Sciences
Apr 30 | $ 9.98 | GMII - Gores Metropoulos II, Inc. --> Sonder Holdings Inc.
Apr 28 | $ 10.18 | GLEO - Galileo Acquisition Corp. --> Shapeways, Inc.
Apr 28 | $ 9.92 | MRAC - Marquee Raine Acquisition Corp. --> Enjoy Technology, Inc.
Apr 27 | $ 10.05 | BLUW - Blue Water Acquisition Corporation --> Clarus Therapeutics

The GLEO deal was aided by Cathie Wood's ARK ETFs scooping up some discounted shares. Investors will be watching these deals for positive catalysts / announcements post-deal announcement to drive upside.

Overall, the market remains in a malaise as it continues to search for a few exciting deals and some positive news to reenergize it. It's unlikely that any one deal or announcement will be enough so investors will be watching for a series of momentum building events.

For those looking for some positives, de-SPACs aren't as bad as many think and there are more than a few de-SPAC winners.

Monday Deal: Montes Archimedes Acquisition (MAAC) taking Roivant Sciences Public

This morning investors were treated with some Monday merger news with Montes Archimedes (MAAC) announcing it will take Roivant Sciences public in a deal valued at $5B. The deal includes a $200M pipe.

Investors that are worried about incentive alignment between common investors and SPAC insiders will be pleased to see that Patient Square Capital and key Roivant equity holders and management have agreed to long-term lockups. At least 50% of their holdings will be locked up for three years. Patient Square Capital is also converting an additional 30% of its shares of MAAC to earn-out shares subject to performance vesting thresholds: 20% of its shares will vest at $15.00 per share and 10% will vest at $20.00 per share for 20 of 30 trading days within five years of closing.

The deal is expected to close in the 3rd quarter of 2021 and the stock will trade on the NASDAQ as ROIV.

SPAC Basket Ideas

Buy the Dip? Friday's Biggest Decliners
-5.61% ~ $ 15.30 | RICE - Rice Acquisition Corp. (Announced)
-4.44% ~ $ 21.09 | CCIV - Churchill Capital Corp IV (Announced)
-3.47% ~ $ 16.13 | MUDS - Mudrick Capital Acquisition Corporation II (Announced)
-3.43% ~ $ 12.67 | GHVI - Gores Holdings VI Inc (Announced)
-3.15% ~ $ 10.77 | ROCC - Roth CH Acquisition II Co. (Announced)
-2.94% ~ $ 16.18 | ACTC - ArcLight Clean Transition Corp (Announced)
-2.90% ~ $ 9.70 | RXRA - RXR Acquisition Corp (Pre-Deal)
-2.80% ~ $ 13.55 | CMLF - CM Life Sciences Inc (Announced)
-2.54% ~ $ 38.70 | BRPA - Big Rock Partners Acquisition Corp (Announced)
-2.47% ~ $ 17.00 | IPOE - Social Capital Hedosophia Holdings Corp V (Announced)
-2.26% ~ $ 12.98 | CMII - CM Life Sciences II Inc. (Announced)
-2.22% ~ $ 9.70 | IBER - Ibere Pharmaceuticals (Pre-Deal)
-2.19% ~ $ 13.42 | FSRV - FinServ Acquisition Corp (Announced)
-1.92% ~ $ 9.71 | DHCA - DHC Acquisition Corp (Pre-Deal)
-1.90% ~ $ 9.81 | DDMX - DD3 Acquisition Corp. II (Pre-Deal)
-1.56% ~ $ 10.71 | APXT - Apex Technology Acquisition Corporation (Announced)
-1.47% ~ $ 16.79 | TPGY - TPG Pace Beneficial Finance Corp (Announced)
-1.44% ~ $ 13.34 | TDAC - Trident Acquisitions Corp (Announced)
-1.39% ~ $ 9.96 | CAS - Cascade Acquisition Corp (Pre-Deal)
-1.37% ~ $ 10.77 | IPOD - Social Capital Hedosophia Holdings Corp IV (Pre-Deal)

SPACs at a Discount
-3.30% ~ $ 9.67 | PUCK - Goal Acquisitions Corp. (Pre-Deal)
-3.20% ~ $ 9.68 | EJFA - EJF Acquisition Corp (Pre-Deal)
-3.20% ~ $ 9.68 | AGAC - African Gold Acquisition Corporation (Pre-Deal)
-3.20% ~ $ 9.68 | HHLA - HH&L Acquisition Co. (Pre-Deal)
-3.10% ~ $ 9.69 | BLTS - Bright Lights Acquisition Corp. (Pre-Deal)
-3.09% ~ $ 9.69 | FLME - Flame Acquisition Corp. (Pre-Deal)
-3.00% ~ $ 9.70 | RXRA - RXR Acquisition Corp (Pre-Deal)
-3.00% ~ $ 9.70 | VOSO - Virtuoso Acquisition Corp. (Pre-Deal)
-3.00% ~ $ 9.70 | FTEV - FinTech Evolution Acquisition Group (Pre-Deal)
-3.00% ~ $ 9.70 | VOSO - Virtuoso Acquisition Corp. (Pre-Deal)
-3.00% ~ $ 9.70 | MACQ - MCAP Acquisition Corporation (Pre-Deal)
-3.00% ~ $ 9.70 | CLAS - Class Acceleration Corp. (Pre-Deal)
-3.00% ~ $ 9.70 | IBER - Ibere Pharmaceuticals (Pre-Deal)
-3.00% ~ $ 9.70 | TRCA - Twin Ridge Capital Acquisition Corp. (Pre-Deal)
-2.90% ~ $ 9.71 | DHCA - DHC Acquisition Corp (Pre-Deal)