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SPAC Weekly Roundup: IPOs, M&A, and Deal Terminations are Everywhere

IPOs are once again super hot with November approaching $7B in issuance. M&A activity was rampant with 7 new deals and 1 new termination.

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It was a more active week in the SPAC primary market on both an IPO front as well as announced M&A. November is already nearing $7B in new SPAC issuance after October tipped $10B, to be the largest month for new issuance since March. 

Unsurprisingly, all of the newest IPOs are trading above the $10 mark, but be smart as that is due to the fact that they also all have overfunded trust amounts in order to get their transactions priced. 

There was some much needed M&A activity also picked up this week, with 7* new definitive agreements announced. The asterisk on 7 is a mild shot at the interesting USGH Acquisition Corp (HUGS) announced transaction with Panera Bread, which is not a typical SPAC reverse merger. 

All in all while 7 is the most announced deals in a week in some time, it surely is falling behind the pace of IPOs which saw 13 come to market. Look out, in the not so distant future SPAC liquidations might again become commonplace. 

Not to mention, two previously announced SPAC deals were called off, making that 8 total called off since July. The latest this week:

  • Hennessy Capital Investment Corp V (HCIC) called off its merger with self-driving truck company Plus, citing international regulatory environment.
  • Austerlitz Acquisition Corp I (AUS) called off its deal with Wynn Resorts to buy its Wynn Interactive business line (WynnBET), citing a shift in customer acquisition strategy and reduced capital needs. 

What does this say about the future of SPAC mergers? Tough to say, it could be a sense of elevated deal values, and maybe a lack of committed financing. But 6 of the last 8 deals to be cancelled did have a PIPE in place. Regardless, look for deal valuations to potentially be stingier and negotiations between deal parties to take longer, leaving time for more diligence and (hopefully) better deal certainty. 

Other SPACs cancelling deals this year have included:

  • DPCM Capital (XPOA) / Jam City
  • Tailwind Acquisition (TWND) / QOMPLX
  • Mudrick Capital Acquisition II (MUDS) / Topps
  • Malacca Straits Acquisition Co. (MLAC) / Asia Vision
  • Yunhong International (ZGYH) / Giga Energy (Pat Orlando, of DWAC fame)
  • Spring Valley Acquisition (SV) / AeroFarms

SPAC Merger Announcements 

Danny Meyer's USGH was the big winner of the week on its announced deal to be a cornerstone investor in the eventual "traditional" IPO of Panera Bread. 

Nov 10 | $ 10.01 | VTAQ - Ventoux CCM Acquisition Corp. --> Presto
Nov 10 | $ 9.85 | RCLF - Rosecliff Acquisition Corp I --> GETT
Nov 10 | $ 9.86 | CPTK - Crown PropTech Acquisitions --> Brivo
Nov 09 | $ 10.43 | HUGS - USHG Acquisition Corp. --> Panera Bread Co
Nov 09 | $ 9.87 | TCAC - Tuatara Capital Acquisition Corporation --> SpringBig, Inc.
Nov 08 | $ 9.94 | DSAC - Duddell Street Acquisition Corp --> FiscalNote, Inc.
Nov 08 | $ 9.88 | BIOT - Biotech Acquisition Company --> Blade Therapeutics, Inc.

SPAC IPOs

1/2 warrant coverage with a $10.20 initial trust value are becoming almost market standard. 

Nov 20 | $ 10.05 | LGVC - LAMF Global Ventures Corp. I
Nov 12 | $ 10.08 | MCAG - Mountain Crest Acquisition Corp. V
Nov 11 | $ 10.01 | IRRX - Integrated Rail and Resources Acquisition Corp.
Nov 10 | $ 10.06 | VMGA - VMG Consumer Acquisition Corp.
Nov 09 | $ 10.09 | ACDI - Ascendant Digital Acquisition Corp. III
Nov 09 | $ 10.08 | AFAC - Arena Fortify Acquisition Corp.
Nov 09 | $ 10.10 | BCSA - Blockchain Coinvestors Acquisition Corp. I
Nov 09 | $ 10.07 | RCF - RCF Acquisition Corp.
Nov 09 | $ 10.07 | CBRG - Chain Bridge I
Nov 09 | $ 10.08 | GVCI - Green Visor Financial Technology Acquisition Corp I
Nov 08 | $ 10.08 | APN - Apeiron Capital Investment Corp.
Nov 08 | $ 10.06 | DPCS - DP Cap Acquisition Corp I
Nov 08 | $ 10.12 | HTAQ - Hunt Companies Acquisition Corp. I

Today's Price Action

Biggest Gainers

15.82% ~ $ 12.81 | GGPI - Gores Guggenheim, Inc (Announced)
8.71% ~ $ 10.98 | DFPH - DFP HEALTHC ACQ (Announced)
6.02% ~ $ 11.98 | DCRC - Decarbonization Plus Acquisition Corporation III (Announced)
5.19% ~ $ 13.57 | XPDI - Power & Digital Infrastructure Acquisition Corp. (Announced)
2.23% ~ $ 12.36 | CND - Concord Acquisition Corp (Announced)
2.06% ~ $ 10.38 | SBEA - SilverBox Engaged Merger Corp I (Announced)
2.06% ~ $ 8.90 | GNRS - GREENROSE ACQUISITION CORP (Announced)
2.04% ~ $ 10.48 | MCMJ - Merida Merger Corp. I (Announced)
1.96% ~ $ 10.39 | AGCB - Altimeter Growth Corp. 2 (Pre-Deal)
1.93% ~ $ 10.54 | IVAN - Ivanhoe Capital Acquisition Corp (Announced)
1.89% ~ $ 59.18 | DWAC - Digital World Acquisition Corp. (Announced)
1.41% ~ $ 10.10 | EJFA - EJF Acquisition Corp (Announced)
1.39% ~ $ 10.19 | NGCA - NextGen Acquisition Corp. II (Announced)
1.34% ~ $ 10.55 | SNII - Supernova Partners Acquisition Company II, Ltd. (Announced)
1.32% ~ $ 10.76 | FPAC - Far Peak Acquisition Corp (Announced)

Biggest Losers

-6.57% ~ $ 9.88 | HHGC - HHG Capital Corporation (Pre-Deal)
-4.04% ~ $ 16.37 | AGC - Altimeter Growth Corp. (Announced)
-1.71% ~ $ 9.75 | FRON - Frontier Acquisition Corp. (Pre-Deal)
-1.65% ~ $ 10.73 | TPGY - TPG Pace Beneficial Finance Corp (Announced)
-1.59% ~ $ 9.89 | HLXA - HELIX ACQUISITION CORP (Announced)
-1.52% ~ $ 9.72 | RACB - Research Alliance Corp. II (Pre-Deal)
-1.44% ~ $ 10.29 | BRPM - B. Riley Principal 150 Merger Corp. (Announced)
-1.40% ~ $ 9.85 | CPAA - Conyers Park III Acquisition Corp. (Pre-Deal)
-1.35% ~ $ 9.86 | ORIA - Orion Biotech Opportunities Corp. (Pre-Deal)
-1.32% ~ $ 10.47 | FTCV - FinTech Acquisition Corp. V (Announced)
-1.31% ~ $ 9.83 | AUS - Austerlitz Acquisition Corporation I (Pre-Deal)
-1.04% ~ $ 10.00 | NHLD - NewHold Investment Corp. II (Pre-Deal)
-1.02% ~ $ 9.74 | FTPA - FTAC Parnassus Acquisition Corp. (Pre-Deal)
-1.01% ~ $ 9.85 | MCAE - Mountain Crest Acquisition Corp. III (Pre-Deal)
-.79% ~ $ 10.00 | ISOS - Isos Acquisition Corp. (Announced)
-.76% ~ $ 11.80 | SEAH - Sports Entertainment Acquisition Corp (Announced)
-.61% ~ $ 9.78 | IIII - INSU Acquisition Corp. III (Pre-Deal)
-.52% ~ $ 9.91 | LIII - Leo Holdings III Corp (Announced)

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