On a day that there were no new SPAC merger announcements, IPOs or new S-1s there was, however, a hearing in the House targeting the future of SPACs. In short, it could result in new legislation that takes away one of SPAC's perceived advantages over the traditional IPO: safe harbor protections for forward looking statements which could limit SPAC targets' freedom to paint rosy financial projections to prospective investors.
Many will fear that this change would spell the end for SPACs, but instead it would likely help the market operate more rationally and, frankly, healthier.
On the note of overly rosy financial projections for SPACs, Lordstown Motors is Plummeting after hours. As of this writing it was down nearly ~10% following its quarterly earnings report.
Lordstown went public via DiamondPeak Holdings Corp. in a merger that closed in October 2020. The company is noting that 2021 production will be "half or less" of its prior plan, and that a capital raise will be needed to continue operations.
This is not good news for SPAC investors that have been backing pre-revenue SPACs (like Lordstown) that are putting out less than stellar numbers. Look for this to be another arrow in the SEC's quiver of SPAC targets putting out overly ambitious projections.
RIDE was trading at near $30 during peak SPAC and is now sub $9 post market today. In short, pre-revenue, speculative companies are facing a tougher road.
However, this morning SPAC investors saw Virgin Galactic Holdings (SPCE) soar on news regarding its test flight. So, what is clear about the early stage companies that go public via SPACs is that, in most instances, investors will be for a roller coaster ride until they mature.
Today's SPAC Gainers
9.35% ~ $ 13.56 | RSVA - Rodgers Silicon Valley Acquisition Corp (Announced)
5.32% ~ $ 19.78 | IPOE - Social Capital Hedosophia Holdings Corp V (Announced)
4.16% ~ $ 10.02 | FLME - Flame Acquisition Corp. (Pre-Deal)
3.14% ~ $ 11.17 | PSAC - Property Solutions Acquisition Corp (Announced)
3.13% ~ $ 13.50 | JWS - Jaws Acquisition Corp (Announced)
2.08% ~ $ 10.30 | TSIA - TS Innovation Acquisitions Corp (Announced)
2.06% ~ $ 9.90 | RXRA - RXR Acquisition Corp (Pre-Deal)
1.93% ~ $ 10.04 | WALD - Waldencast Acquisition Corp. (Pre-Deal)
1.87% ~ $ 9.83 | ANZU - Anzu Special Acquisition Corp I (Pre-Deal)
1.70% ~ $ 15.52 | SSPK - Silver Spike Acquisition Corp. (Announced)
1.61% ~ $ 15.13 | RICE - Rice Acquisition Corp. (Announced)
1.52% ~ $ 11.99 | CMLF - CM Life Sciences Inc (Announced)
1.33% ~ $ 9.89 | JYAC - Jiya Acquisition Corp. (Pre-Deal)
1.23% ~ $ 9.87 | OCAX - OCA Acquisition Corp (Pre-Deal)
1.20% ~ $ 10.12 | HSAQ - Health Sciences Acquisitions Corporation 2 (Pre-Deal)
1.12% ~ $ 9.90 | CBAH - CBRE Acquisition Holdings, Inc. (Pre-Deal)
Today's SPAC Losers
BRPA continued its volatile trading, falling another 12% today, as Stable Road dropped 13% as its target, space flight company Momentus, announced it wouldn't be flying in 2021. This comes on the heels of other space related news, Virgin Galactic rising on a successful test mission over the weekend.
-13.38% ~ $ 10.42 | SRAC - Stable Road Acquisition Corp. (Announced)
-11.88% ~ $ 24.25 | BRPA - Big Rock Partners Acquisition Corp (Announced)
-3.50% ~ $ 16.00 | ACTC - ArcLight Clean Transition Corp (Announced)
-2.74% ~ $ 12.42 | BOWX - BowX Acquisition Corp (Announced)
-2.41% ~ $ 9.71 | HIII - Hudson Executive Investment Corp. III (Pre-Deal)
-2.28% ~ $ 12.02 | TPGY - TPG Pace Beneficial Finance Corp (Announced)
-2.18% ~ $ 9.88 | CFFE - CF Acquisition Corp. VIII (Pre-Deal)
-2.07% ~ $ 19.40 | CCIV - Churchill Capital Corp IV (Announced)
-1.89% ~ $ 12.46 | TDAC - Trident Acquisitions Corp (Announced)
-1.74% ~ $ 9.63 | VELO - Velocity Acquisition Corp (Pre-Deal)
-1.52% ~ $ 10.34 | LEAP - Ribbit LEAP Ltd (Pre-Deal)
-1.37% ~ $ 13.67 | GHVI - Gores Holdings VI Inc (Announced)
-1.36% ~ $ 10.18 | TBA - Thoma Bravo Advantage (Announced)
-1.33% ~ $ 9.65 | PV - Primavera Capital Acquisition Corporation (Pre-Deal)
-1.32% ~ $ 9.71 | HCAQ - HealthCor Catalio Acquisition Corp. (Pre-Deal)
-1.31% ~ $ 9.77 | WPCB - Warburg Pincus Capital Corporation I—B (Pre-Deal)
-1.22% ~ $ 9.71 | FLAC - Frazier Lifesciences Acquisition Corporation (Pre-Deal)
-1.12% ~ $ 9.74 | TSIB - Tishman Speyer Innovation Corp. II (Pre-Deal)
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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- Crypto Crashed Loudly While SPACs Drop Quietly
- SPAC Market is Healthier Than Most Think
- TPGY/EVBox Deal Falling Apart Would be a Big Blow to SPACs
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- 15 SPAC Mergers in 30 Days
- SPACs End Week on a High (Kind of)
- Will SPACs Rebound with the Market?
- Pitchforks out for Chamath and SPACs
- Exclusive SPAC Q&A: Better World Acquisition Corp (BWAC)
- SPACs Remain Discounted, Dell prices IPO
- SPAC Deals Lacking Punch + SWBK Taking Bird Public
- SPAC Stocks Continue Slide Despite M&A Activity
(Disclaimers: this is not investment advice. The author may be long one or more stocks mentioned in this report.)