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It's Beginning to Look a lot Like 2020, Except in SPACs

We recap the week in SPACs, highlighted by several merger announcements (including GIIX, SVFC), but mostly negative performance across the board in SPACs.

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The omicron variant is surging across the country, bringing back memories of a subdued 2020 holiday season marked with quarantines and lockdowns. Renewed spread and virus fears coupled with the fed continue to drive down the equity markets. 

However, December 2020 also saw the onset of what would be a massive nearly 3-month bull run in SPACs and meme stock mania. While new SPAC issuance in December 2021 has trounced 2020 (see below), SPACs are trading at far more depressed levels than last year. We don't envision such rampant enthusiasm for SPACs returning anytime soo given the supply gut that the asset class is facing. 

December 2020 kicked off an historic rally in SPACs

December 2020 kicked off an historic rally in SPACs

Last year investors were scooping up pre-deal SPACs at high premiums, hoping for the next big jump. Today nearly every pre-deal SPAC is at a discount, with the big jumps on deal announcement saved for (the riskier) warrants.

Lower levels aside, the SPAC train rolls on with 11 new mergers announced this week, (the highest in some time) to go along with 14 new IPOs. However, the majority are trading sub-NAV despite highly overfunded trusts and generous warrant coverage. 

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Elsewhere in SPACs

 Investindustrial Acquisition Corp. (IIAC) closed its merger with Zegna and will trade as ZGN on Monday. 

3 other De-SPACs occurred this week (see prices for de-spacs below)

  • Yucaipa --> SIGNA Sports (SSU)
  • Isos --> Bowlero (BOWL)
  • Broadstone --> Vertical Aerospace (EVTL)

This Week's Mergers

11 SPACs announced new merger agreements this week, which is a much healthier pace than we've seen in recent weeks. Some highlights:

  • Gores VIII (GIIX): $1.6B EV for FOOTPRINT, as the SPAC veterans get back in the action
  • Spring Valley (SV): gets a second chance after its cancelled AeroFarms deal, striking a $1.9B deal for NuScale Power
  • SoftBank announced its first SPAC M&A deal in its SPAC line (interestingly) for SV Investment Corp 3 (SVFC), with a $4.8B deal for Symbotic

Dec 17 | $ 9.78 | AACI - Armada Acquisition Corp. I --> Rezolve Ltd.
Dec 17 | $ 10.05 | CLAQ - cleantech Acquisition Corp. --> Nauticus Robotics Inc
Dec 16 | $ 9.93 | FOUN - Founder SPAC --> Rubicon Technologies
Dec 16 | $ 9.80 | NAAC - North Atlantic Acquisition Corporation --> TeleSign Holdings, Inc.
Dec 14 | $ 10.23 | GIIX - GORES HOLDINGS VIII, INC. --> Footprint International Holdco, Inc.
Dec 14 | $ 10.01 | SV - Spring Valley Acquisition Corp --> NuScale Power
Dec 13 | $ 9.93 | GACQ - Global Consumer Acquisition Corp. --> GP Global and Luminex
Dec 13 | $ 10.05 | RAM - Aries I Acquisition Corp --> InfiniteWorld
Dec 13 | $ 9.96 | SVFC - SVF Investment Corp. 3 --> Symbotic
Dec 13 | $ 10.00 | IMPX - AEA-Bridges Impact Corp --> LiveWire
Dec 13 | $ 9.81 | HYAC - Haymaker Acquisition Corp. III --> Biote

This Week's IPOs

AP Acquisition Corp closed up 9c on its IPO today, yet remains 21c discounted to its NAV of $10.30. There is free yield galore in pre-deal SPACs if you are looking for yield and can play patiently. 

Dec 16 | $ 9.89 | RCAC - Revelstone Capital Acquisition Corp.
Dec 16 | $ 10.09 | APCA - AP Acquisition Corp
Dec 15 | $ 9.99 | SHAP - Spree Acquisition Corp. 1 Ltd
Dec 15 | $ 10.01 | ADRT - Ault Disruptive Technologies Corp
Dec 15 | $ 9.96 | TBD - FTAC Emerald Acquisition Corp.
Dec 15 | $ 10.00 | CFFS - CF Acquisition Corp. VII
Dec 14 | $ 10.00 | EVE - EVe Mobility Acquisition Corp
Dec 14 | $ 10.06 | IVCB - Investcorp Europe Acquisition Corp I
Dec 14 | $ 9.99 | PRLH - Pearl Holdings Acquisition Corp
Dec 14 | $ 10.00 | AHRN - Ahren Acquisition Corp.
Dec 14 | $ 9.89 | IVCP - Swiftmerge Acquisition Corp.
Dec 14 | $ 10.00 | BFAC - Battery Future Acquisition Corp.
Dec 13 | $ 10.15 | KACL - Kairous Acquisition Corp. Ltd
Dec 13 | $ 10.16 | ALSA - Alpha Star Acquisition Corp

Recent De-SPACs

Has been a bit of a blood-bath for recent de-SPACs, with a few outliers. Reminder to have a longer term view here, equities are getting clobbered all around. 

$ 10.14 | IIAC - Investindustrial Acquisition Corp. --> Ermenegildo Zegna
$ 12.84 | BSN - Broadstone Acquisition Corp. --> Vertical Aerospace Ltd
$ 9.66 | ISOS - Isos Acquisition Corp. --> Bowlero
$ 10.17 | CBAH - CBRE Acquisition Holdings, Inc. --> Altus Power, Inc
$ 11.93 | SVOK - Seven Oaks Acquisition Corp. --> Boxed
$ 8.19 | DGNS - DRAGONEER GR OP --> CVENT
$ 9.16 | DCRC - Decarbonization Plus Acquisition Corporation III --> Solid Power Inc.
$ 6.29 | DMYQ - dMY Technology Group, Inc. IV --> Planet Labs Inc.
$ 8.72 | GIG - GigCapital4, Inc. --> BigBear.ai
$ 7.66 | TPGS - TPG Pace Solutions Corp. --> Vacasa Inc
$ 6.18 | ENFA - 890 5th Avenue Partners, Inc. --> BuzzFeed
$ 7.96 | FORE - Foresight Acquisition Corp. --> P3 Health Partners
$ 6.42 | THMA - Thimble Point Acquisition Corp. --> Pear Therapeutics, Inc.
$ 16.40 | ADF - Aldel Financial Inc. --> Hagerty
$ 7.57 | AGC - Altimeter Growth Corp. --> Grab Holdings Ltd

SPAC Merger Vote Calendar

7 SPACs are looking to get their shareholder votes in next week to conceivably close deals before the end of the year. Look out for high redemptions on 5 of the 7 set to vote. 

Dec 20 | $ 9.27 | CFV - CF Acquisition Corp. V --> Satellogic
Dec 21 | $ 9.82 | HCAQ - HealthCor Catalio Acquisition Corp. --> Hyperfine, Inc.
Dec 21 | $ 9.84 | EUSG - European Sustainable Growth Acquisition Corp. --> ADS-TEC Energy GmbH
Dec 21 | $ 9.76 | MACQ - MCAP Acquisition Corporation --> AdTheorent Inc.
Dec 21 | $ 9.35 | ATMR - Altimar Acquisition Corp. II --> Fathom Digital Manufacturing Corporation
Dec 23 | $ 10.16 | DBDR - Roman DBDR Tech Acquisition Corp. --> CompoSecure Holdings, L.L.C.
Dec 23 | $ 10.39 | FSII - FS Development Corp. II --> Pardes Biosciences, Inc

Today's Price Action

Biggest Gainers

4.40% ~ $ 10.20 | SAMA - Schultze Special Purpose Acquisition Corp. II (Pre-Deal)
2.00% ~ $ 10.03 | AEAE - AltEnergy Acquisition Corp (Pre-Deal)
1.72% ~ $ 10.04 | DYNS - Dynamics Special Purpose Corp. (Pre-Deal)
1.65% ~ $ 9.85 | EDNC - Endurance Acquisition Corp. (Pre-Deal)
1.53% ~ $ 9.95 | KVSC - Khosla Ventures Acquisition Co. III (Pre-Deal)
1.53% ~ $ 9.95 | LHAA - Lerer Hippeau Acquisition Corp (Pre-Deal)
1.52% ~ $ 12.04 | CFVI - CF Acquisition Corp. VI (Announced)
1.31% ~ $ 10.05 | CLAQ - cleantech Acquisition Corp. (Announced)
1.24% ~ $ 9.93 | ACAH - Atlantic Coastal Acquisition Corp. (Announced)
1.24% ~ $ 9.80 | LITT - Logistics Innovation Technologies Corp. (Pre-Deal)
.92% ~ $ 9.82 | AGAC - African Gold Acquisition Corporation (Pre-Deal)
.83% ~ $ 9.75 | XFIN - ExcelFin Acquisition Corp. (Pre-Deal)
.82% ~ $ 9.88 | HCAR - Healthcare Services Acquisition Corporation (Pre-Deal)
.81% ~ $ 9.90 | VAQC - Vector Acquisition Corporation II (Pre-Deal)
.77% ~ $ 10.51 | CND - Concord Acquisition Corp (Announced)
.72% ~ $ 9.82 | HCAQ - HealthCor Catalio Acquisition Corp. (Announced)
.65% ~ $ 9.86 | PRPC - CC Neuberger Principal Holdings III (Pre-Deal)
.62% ~ $ 9.79 | EAC - Edify Acquisition Corp. (Pre-Deal)
.62% ~ $ 9.80 | SPKB - Silver Spike Acquisition Corp II (Pre-Deal)
.61% ~ $ 9.90 | SRSA - Sarissa Capital Acquisition Corp (Pre-Deal)

Biggest Losers

-9.49% ~ $ 11.06 | ESSC - East Stone Acquisition Corporation (Announced)
-5.65% ~ $ 8.69 | CMLT - CM Life Sciences III Inc. (Announced)
-3.81% ~ $ 11.35 | MEKA - MELI Kaszek Pioneer Corp (Pre-Deal)
-3.61% ~ $ 9.35 | ATMR - Altimar Acquisition Corp. II (Announced)
-2.47% ~ $ 50.06 | DWAC - Digital World Acquisition Corp. (Announced)
-2.47% ~ $ 9.86 | FWAC - Fifth Wall Acquisition Corp. III (Pre-Deal)
-2.35% ~ $ 10.39 | FSII - FS Development Corp. II (Announced)
-2.34% ~ $ 10.01 | ATSPT - Archimedes Tech SPAC Partners Co (Announced)
-1.84% ~ $ 9.89 | ESAC - ESGEN Acquisition Corp (Pre-Deal)
-1.52% ~ $ 10.39 | XPDI - Power & Digital Infrastructure Acquisition Corp. (Announced)
-1.35% ~ $ 8.06 | YAC - Yucaipa Acquisition Corporation (Announced)
-1.31% ~ $ 9.76 | MACQ - MCAP Acquisition Corporation (Announced)
-1.23% ~ $ 9.65 | PEPL - PepperLime Health Acquisition Corp (Pre-Deal)
-1.16% ~ $ 10.20 | IPOF - Social Capital Hedosophia Holdings Corp VI (Pre-Deal)
-.81% ~ $ 9.77 | DISA - Disruptive Acquisition Corp I (Pre-Deal)
-.81% ~ $ 9.84 | EUSG - European Sustainable Growth Acquisition Corp. (Announced)
-.80% ~ $ 9.86 | FTAA - FTAC Athena Acquisition Corp. (Announced)
-.78% ~ $ 10.22 | ACKIT - ACKRELL SPAC Partners I Co. (Pre-Deal)
-.72% ~ $ 9.70 | ENER - Accretion Acquisition Corp. (Pre-Deal)
-.58% ~ $ 9.91 | VCXA - 10X Capital Venture Acquisition Corp. II (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.)