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SPACs Limping towards 2022, TPG Pace Beneficial (TPGY) and EVBox Cancel Merger

Another day off from primary activity and red (mostly) across the board has SPACs waiting for 2022. CFV closes out the 2021 vote schedule tomorrow. PL continues to fall in de-SPAC.

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2021 is drawing to a close and what a year it was for SPACs. In our December market update we take a look at the last month of the year and give our latest thoughts on the market, including:

  • Record IPO issuance and SPAC supply
  • Aging SPACs and outlook for terminations
  • Merger market + financing evolution

** Read the full report at Boardroom Alpha **

SPACs are limping towards the year-end finish line, with not a lot of green across the board. Some popular opinions are calling it tax-loss harvesting (i.e. crystalizing losses to offset gains), though that is just speculation. Either way, it could signal a floor in many names with some opportunity to get in cheap early in the new year. 

Just one more SPAC left to vote this week (we think) as CF Acquisition Corp V (CFV) looks to be finally set to hold its Satellogic shareholder vote after postponing it multiple times in search of additional financing. CFV closed at $9.67.

With another day of no new market activity (in terms of IPOs or DAs), it's likely to remain the same for the balance of the week. Though, don't forget, New Year's Eve is NOT an equity market holiday in a scheduling quirk. 

TPG Pace and EVBox Cancel Merger

TPG Pace Beneficial Finance Corp (TPGY) and EV charging company EVBox announced that they have called off their merger agreement over a year after it was announced in December 2020. The timing still leaves 10 months for TPGY to find a new target, having IPO'ed with a 24-month deadline in October-2020. 

TPGY, already trading heavily discounted ~$9.80, hasn't moved much in after-hours trading while the warrants are down huge > 40% to ~50c down from $0.91 close. 

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It's a bit of a blow for PE giant TPG who have 5 de-SPACs on their record (as a sponsor) in addition to multiple other SPACs seeking targets. 

The termination marks the 4th SPAC deal to be terminated this December, and the 15th overall in 2021. Look out for more of these down the line. 

EVs and EV charging companies, once the darling child of the SPAC market, have been a bit of a mixed bag in recent months, with some big winners (LCID) and stragglers (VLTA). 

Announced Transaction | -3.24% ~ $ 11.06 | GGPI - Gores Guggenheim, Inc -> Polestar
De-SPAC | -5.69% ~ $ 6.80 | SNPR - Tortoise Acquisition Corp II -> Volta Inc (VLTA)
De-SPAC | -.90% ~ $ 8.77 | ACTC - ArcLight Clean Transition Corp -> Proterra Inc (PTRA)
De-SPAC | -4.00% ~ $ 9.36 | CLII - Climate Change Crisis Real Impact I Acquisition Corp -> EVgo Inc (EVGO)
De-SPAC | -6.35% ~ $ 9.88 | VTIQ - VectoIQ Acquisition Corp -> Nikola Corp (NKLA)
De-SPAC | -2.41% ~ $ 12.94 | NBAC - Newborn Acquisition Corp. -> Nuvve Holding Corp (NVVE)
De-SPAC | -3.62% ~ $ 15.69 | SPAQ - Spartan Energy Acquisition Corp. -> Fisker Inc (FSR)
De-SPAC | -4.93% ~ $ 17.76 | SBE - Switchback Energy Acquisition Corporation -> ChargePoint Holdings Inc (CHPT)
De-SPAC | -3.80% ~ $ 22.03 | KCAC - Kensington Capital Acquisition Corp -> QuantumScape Corp (QS)
De-SPAC | -.03% ~ $ 36.97 | CCIV - Churchill Capital Corp IV -> Lucid Group Inc (LCID)

PIPE Pressures?

Planet Labs (PL) continues to suffer in its early De-SPAC days, falling another 3% today to close under $6 after it filed its preliminary S-1, registering its $252M in PIPE shares (usually effective in 1-3 weeks). With shares already at a steep discount to NAV, it will be interesting to see if there is a lot of selling upon PIPE unlock. It could be a further opportunity for insiders to scoop up cheap shares, as they have been doing recently

Both WeWork (WE) and SolidPower (SLDP) PIPEs became effective today, and they subsequently fell -1.5% to $8.40 and -4.3% to $8.98 respectively. 

With many de-spacs already trading sub-NAV (and sub $10 PIPE price), could it be that institutional PIPE investors are becoming more patient? While those moves are surely negative, they are not as drastic as when a SPAC is at a premium and the PIPE investors rush to lock in some gains.  

Other SPAC News

NextGen Acquisition Corp. II (NGCA) closed it's acquisition with Virgin Orbit and will trade as VORB starting tomorrow, 12/30. Shares closed at $9.25 today, after disclosing ~83% redemptions in its shareholder vote yesterday. 

Athena Technology Acquisition Corp (ATHN) announced that its merger with Heliogen will close tomorrow 12/30 and begin trading as HLGN on 12/31. 22.7M shares ($227M of trust) or ~91% of the SPAC's trust was redeemed in the vote. Shares are surging after-hours on hopes of a low-float/short squeeze. 

Today's Price Action

Biggest Gainers

5.13% ~ $ 9.64 | ATHN - Athena Technology Acquisition Corp. (Announced)
1.94% ~ $ 9.97 | SVFB - SVF Investment Corp. 2 (Pre-Deal)
1.61% ~ $ 10.10 | WALD - Waldencast Acquisition Corp. (Announced)
1.32% ~ $ 10.74 | ESSC - East Stone Acquisition Corporation (Announced)
1.17% ~ $ 10.40 | LMACA - Liberty Media Acquisition Corporation (Pre-Deal)
1.13% ~ $ 9.85 | GGMC - Glenfarne Merger Corp. (Pre-Deal)
1.01% ~ $ 10.02 | ISAA - Iron Spark I Inc. (Pre-Deal)
.82% ~ $ 9.82 | PGRW - Progress Acquisition Corp. (Pre-Deal)
.82% ~ $ 9.83 | MBSC - M3-Brigade Acquisition III Corp. (Pre-Deal)
.71% ~ $ 9.92 | CCV - Churchill Capital Corp V (Pre-Deal)
.71% ~ $ 9.97 | NOVV - Nova Vision Acquisition Corp (Pre-Deal)
.71% ~ $ 9.98 | DSAC - Duddell Street Acquisition Corp (Announced)
.66% ~ $ 9.90 | THAC - Thrive Acquisition Corp (Pre-Deal)
.62% ~ $ 9.76 | CRZN - Corazon Capital V838 Monoceros Corp (Pre-Deal)
.62% ~ $ 9.77 | SLAC - Social Leverage Acquisition Corp I (Pre-Deal)
.62% ~ $ 9.78 | VII - 7GC & Co. Holdings Inc. (Pre-Deal)
.62% ~ $ 9.80 | BHAC - Crixus BH3 Acquisition Corp. (Pre-Deal)
.60% ~ $ 10.09 | SBEA - SilverBox Engaged Merger Corp I (Announced)
.52% ~ $ 9.73 | TWLV - Twelve Seas Investment Company II (Pre-Deal)
.52% ~ $ 9.74 | TETC - Tech and Energy Transition Corporation (Pre-Deal)

Biggest Losers

-7.94% ~ $ 11.95 | MEKA - MELI Kaszek Pioneer Corp (Pre-Deal)
-3.41% ~ $ 50.66 | DWAC - Digital World Acquisition Corp. (Announced)
-3.34% ~ $ 9.25 | NGCA - NextGen Acquisition Corp. II (Announced)
-3.24% ~ $ 11.06 | GGPI - Gores Guggenheim, Inc (Announced)
-2.98% ~ $ 10.73 | CFVI - CF Acquisition Corp. VI (Announced)
-2.62% ~ $ 9.68 | SEDA - SDCL EDGE Acquisition Corp (Pre-Deal)
-1.48% ~ $ 10.00 | ATSPT - Archimedes Tech SPAC Partners Co (Announced)
-1.31% ~ $ 9.67 | ORIA - Orion Biotech Opportunities Corp. (Pre-Deal)
-1.22% ~ $ 9.61 | GOBI - Gobi Acquisition Corp. (Pre-Deal)
-1.01% ~ $ 9.85 | LVAC - LAVA Medtech Acquisition Corp. (Pre-Deal)
-1.00% ~ $ 9.88 | NCAC - Newcourt Acquisition Corp (Pre-Deal)
-.94% ~ $ 10.53 | XPDI - Power & Digital Infrastructure Acquisition Corp. (Announced)
-.92% ~ $ 9.73 | FIAC - Focus Impact Acquisition Corp. (Pre-Deal)
-.92% ~ $ 9.74 | IGNY - Ignyte Acquisition Corp. (Pre-Deal)
-.82% ~ $ 9.65 | COLI - Colicity Inc (Pre-Deal)
-.81% ~ $ 9.77 | CCVI - Churchill Capital Corp VI (Pre-Deal)
-.72% ~ $ 9.70 | PANA - Panacea Acquisition Corp. II (Pre-Deal)
-.72% ~ $ 9.72 | INTE - Integral Acquisition Corp 1 (Pre-Deal)
-.72% ~ $ 9.72 | EPWR - Empowerment & Inclusion Capital I Corp (Pre-Deal)
-.71% ~ $ 9.74 | LEGA - Lead Edge Growth Opportunities, Ltd (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.)