DraftKings, Lordstown Reignite SPAC Criticisms

DCRC falls big on Solid Power deal announcement. Two new deals came to market and CRSA is set to vote tomorrow. But, most eyes were on DraftKings and Lordstown today.
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RIDE's latest downfall has brought a little bite back to the once popular rhetoric that all SPACs are bad. However, it's important to remember that part of the allure of SPACs was the access granted to public market investors to high risk/high reward bets that were historically reserved for VCs. Some will succeed, some will fail, but SPACs will perhaps make these successes and failures that much visible to the public eye. 

As Matt Levine so elegantly puts it:

But the SPAC boom did not invent, like, the concept of visionary founders overpromising to investors. What the SPAC boom did that is interesting is make it much easier for visionary founders to overpromise to public investors.

On that note, a new piece from Hindenburg Research was put out today targeting DraftKings - also trying to paint them with the "evil-SPAC" paintbrush. Not commenting on the validity of their claims, which are mostly focused on the SBTech side of the business dealings in Asia, DraftKings have been a publicly traded company for over a year, so one could reasonably ask: why is this a SPAC issue?

Overall we continue to believe that the SPAC narrative has rightly shifted to a more positive one and that the Lordstown / DraftKings noise won't change that. Investors today are more willing to accept the truth and risks behind Mr. Levine's pithy assessment. And, to a large degree, if investors are making money they will remain fairly sanguine about governance related issues regardless of whether it was a SPAC, IPO, or a Fortune 500 company. 

Elsewhere in SPAC news...

Decarbonization Plus Acquisition Corporation III (DCRC) announced a $1.24B deal with Solid Power this morning, and shares subsequently dropped big, falling ~14% on the day to close at $10.45. 

Fortress Value Acquisition Corp. II (FAII) fell 2% as it held its shareholder vote with ATI Physical Therapy, we have yet to see the results/redemptions. 

Tomorrow, we will see Crescent Acquisition Corp (CRSA) vote on its deal with LiveVox.

Tuesday's Biggest SPAC Movers

Biggest Gainers

6.56% ~ $ 14.29 | LACQ - Leisure Acquisition Corp. (Announced)
5.42% ~ $ 19.65 | RSVA - Rodgers Silicon Valley Acquisition Corp (Announced)
4.11% ~ $ 11.40 | BCTG - BCTG Acquisition Corp. (Announced)
3.85% ~ $ 17.00 | RICE - Rice Acquisition Corp. (Announced)
2.49% ~ $ 11.96 | LCY - Landcadia Holdings III Inc (Announced)
1.94% ~ $ 10.00 | OMEG - Omega Alpha SPAC (Pre-Deal)
1.91% ~ $ 10.14 | NGC - Northern Genesis Acquisition Corp. III (Pre-Deal)
1.77% ~ $ 9.77 | RKTA - Rocket Internet Growth Opportunities Corp. (Pre-Deal)
1.27% ~ $ 10.35 | VACQ - Vector Acquisition Corp (Announced)
1.13% ~ $ 9.88 | TIOA - Tio Tech A (Pre-Deal)
1.08% ~ $ 9.86 | ATVC - Tribe Capital Growth Corp I (Pre-Deal)
.95% ~ $ 13.81 | CLII - Climate Change Crisis Real Impact I Acquisition Corp (Announced)
.83% ~ $ 9.73 | DHCA - DHC Acquisition Corp (Pre-Deal)
.82% ~ $ 9.79 | HLAH - Hamilton Lane Alliance Holdings I, Inc. (Pre-Deal)
.80% ~ $ 10.10 | DGNU - Dragoneer Growth Opportunities Corp. III (Pre-Deal)
.80% ~ $ 10.14 | TCVA - TCV Acquisition Corp. (Pre-Deal)
.79% ~ $ 10.15 | FACA - Figure Acquisition Corp. I (Pre-Deal)
.71% ~ $ 9.90 | JYAC - Jiya Acquisition Corp. (Pre-Deal)

Biggest Losers

-13.56% ~ $ 10.45 | DCRC - Decarbonization Plus Acquisition Corporation III (Announced)
-7.15% ~ $ 10.65 | VGAC - VG Acquisition Corp (Announced)
-6.53% ~ $ 11.74 | CMLF - CM Life Sciences Inc (Announced)
-6.26% ~ $ 22.61 | CCIV - Churchill Capital Corp IV (Announced)
-3.51% ~ $ 14.85 | GHVI - Gores Holdings VI Inc (Announced)
-2.82% ~ $ 12.76 | THCB - Tuscan Holdings Corp. (Announced)
-2.73% ~ $ 10.67 | HOL - Holicity Inc (Announced)
-2.60% ~ $ 11.63 | MUDS - Mudrick Capital Acquisition Corporation II (Announced)
-2.44% ~ $ 10.39 | AHAC - Alpha Healthcare Acquisition Corp (Announced)
-2.28% ~ $ 9.84 | SRSA - Sarissa Capital Acquisition Corp (Pre-Deal)
-2.24% ~ $ 10.03 | FRX - Forest Road Acquisition Corp (Announced)
-2.23% ~ $ 10.53 | IACA - ION Acquisition Corp 1 Ltd (Announced)
-2.11% ~ $ 9.74 | FAII - Fortress Value Acquisition Corp. II (Announced)
-2.06% ~ $ 11.39 | APXT - Apex Technology Acquisition Corporation (Announced)
-2.01% ~ $ 10.25 | WPF - Foley Trasimene Acquisition Corp. (Announced)
-1.96% ~ $ 10.50 | DCRB - Decarbonization Plus Acquisition Corp (Announced)
-1.96% ~ $ 10.53 | LEAP - Ribbit LEAP Ltd (Pre-Deal)
-1.90% ~ $ 9.81 | ACAC - Acies Acquisition Corp (Announced)
-1.81% ~ $ 9.77 | ACQR - Independence Holdings Corp (Pre-Deal)
-1.73% ~ $ 12.53 | FST - FAST ACQ CP (Announced)

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