SPACs spent most of last week in a downward slog as risk assets such as stocks and crypto whipsawed. The silver lining for SPACs? Pre-Deal SPACs are now trading at historic discounts with the average dipping to $9.80, a 20c discount to SPAC NAV. While the seemingly continuous decline in prices, and media coverage, may not be pleasing for investors, it is a reminder that buying discounted SPACs is literally a risk free trade if you can hold to maturity. With patience, buying the right SPAC presents a very compelling yield+optionality trade.
SPCE Completes First Test Flight, Stock Soars
One of the earliest De-SPACs of the SPAC boom, Virgin Galactic (SPCE), stock is back soaring after it completed its first test flight. SPCE has been much maligned as its chairman, Chamath Palihapitiya, has gone from SPAC darling to the target of short sellers and angry investors who have started to lose money in many of his names. In addition, investors such as Cathie Wood had been putting pressure on SPCE by reducing positions.
Today's SPCE news is a reminder to not necessarily look at companies as "De-SPACs" and simply focus on them as operating companies that can trade up or down on both performance and news.
Barrage of Merger Votes Coming
Reminder that there are at least 17 SPACs set to vote on their mergers over the next 30 days, upcoming for this week are:
- Big Rock Partners Acqusition (BRPA) & NeuroRx vote on May 24th
- Social Capital Hedosophia V (IPOE) & SoFi vote on May 27th
- Northern Star Acquisition (STIC) & Barkbox vote on May 28th
The votes are a positive sign that the SPAC market continues to clear out, there are over 145 SPACs with announced deals that are waiting to close their deals.
Today, look out for the Big Rock Partners Acquisition (BRPA) merger vote with NeuroRx. The stock has been well over NAV since ex-redemption, but the price action has been volatile thanks to rumors of an emergency use authorization from the FDA.
SPACs Trading at Large Discounts
-3.80% ~ $ 9.62 | EVOJ - Evo Acquisition Corp. (Pre-Deal)
-3.80% ~ $ 9.62 | RKTA - Rocket Internet Growth Opportunities Corp. (Pre-Deal)
-3.80% ~ $ 9.62 | FLME - Flame Acquisition Corp. (Pre-Deal)
-3.80% ~ $ 9.62 | KSIC - Kadem Sustainable Impact Corporation (Pre-Deal)
-3.80% ~ $ 9.62 | LCA - Landcadia Holdings IV, Inc. (Pre-Deal)
-3.80% ~ $ 9.62 | KAII - Kismet Acquisition Two Corp. (Pre-Deal)
-3.70% ~ $ 9.63 | TCAC - Tuatara Capital Acquisition Corporation (Pre-Deal)
-3.70% ~ $ 9.63 | GAMC - Golden Arrow Merger Corp. (Pre-Deal)
-3.70% ~ $ 9.63 | ISOS - Isos Acquisition Corp. (Pre-Deal)
-3.70% ~ $ 9.63 | SCAQ - Stratim Cloud Acquisition Corp. (Pre-Deal)
-3.70% ~ $ 9.63 | NXU - Novus Capital Corporation II (Pre-Deal)
-3.70% ~ $ 9.63 | OEPW - One Equity Partners Open Water I Corp. (Pre-Deal)
$ 10.64 | 24 months | AGBA - AGBA ACQUISITION LIMITED
$ 10.00 | 22 months | THCA - Tuscan Holdings Corp. II
$ 9.93 | 18 months | MCMJ - Merida Merger Corp. I
$ 9.95 | 18 months | CHPM - CHP Merger Corp.
$ 9.85 | 15 months | CCAC - CITIC Capital Acquisition Corp
$ 9.88 | 14 months | DFPH - DFP HEALTHC ACQ
$ 9.85 | 14 months | PLMI - Plum Acquisition Corp. I
$ 9.82 | 11 months | TREB - Trebia Acquisition Corp
$ 9.96 | 11 months | BRLI - Brilliant Acquisition Corporation
$ 10.11 | 11 months | GSAH - GS Acquisition Holdings Corp II
$ 9.74 | 10 months | CPSR - Capstar Special Purpose Acquisition Corp.
$ 9.89 | 10 months | PTK - PTK Acquisition Corp.
$ 9.78 | 10 months | HPX - HPX Corp
$ 25.29 | 10 months | PSTH - Pershing Square Tontine Holdings
$ 9.80 | 10 months | ERES - East Resources Acquisition Company
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.
- SPACs Close Down Again on Sleepy Friday
- BRPA Surges 88% on EUA Rumor, SPACs Generally Trickled Lower
- Don't Rush into SPAC IPOs + DPCM Capital (XPOA) taking Jam City Public
- 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
- Will Chamath's IPOE / SoFi Deal be Impacted by Clover's Whiff?
- 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.)