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
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)
-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)
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.
- Decarbonization Plus (DCRC) + Solid Power in $1.24B SPAC Deal
- RIDE Continues its Fall, Fortress II (FAII) Votes Tomorrow
- Lordstown (RIDE) CEO Steve Burns Resigns; Boxed + SVOK
- Gamestop's Big Moves; Director/Officer Moves w/o June 11
- De-SPACs Are Popping, Another eVTOL Merger
- Amid Positive SPAC Momentum, IPOs Returned Too
- The SPAC Tide is Turning Positive
- Less Angst in SPAC Land + Wallbox in a $1.5B SPAC Deal
- SPACs Rise, RIDE Plunges on Going Concern
- SPAC Narrative Changing: CLOV Surges in Pre-Market, CCIV Surged Monday
- VPC Impact Drops on Dave Deal, More SPAC Votes Ahead
- A Big Week for SPACs. Will the Narrative Continue to Improve?
- Ackman Rewrites the SPAC "Merger", De-SPACs are Heating Up
- 2 SPACs Vote Tomorrow amid June Merger Frenzy
- SPAC Narrative Changing with De-SPAC Success and New Chamath SPACs?
- Hot Start for SoFi, while MUDS Takes a Hit on AMC and Candy Digital News
- SPAC Activity Picks Up into Memorial Day, Remain Heavily Discounted
- IPOE Passes Vote as Chamath Pens Op-Ed, PACX Rises on Acorns Deal
- Chamath's IPOE Shareholders Vote Today on SoFi Merger; Acorns and eFFECTOR Deals
(Disclaimers: this is not investment advice. The author may be long one or more stocks mentioned in this report.)