The good news? Deals are getting done to chip away at the mountain of 420+ plus SPACs searching for targets. The bad news? Deal enthusiasm remains on the sidelines, for the moment, in congruence with the risk-off trade the markets are seeing elsewhere.
While surely SPAC sponsors won't like to see their deals trade down on announcement -- they still have to strike a deal in order to be compensated for their sponsorship of the SPAC. Therefore they will, in the short term, be more focused on the execution of a successful merger that is approved by SPAC shareholders (and minimize redemptions). In the long term, particularly if earn out structures in place, share price appreciation will be top of mind.
Bottom line, don't expect M&A activity to completely come to a halt due to the current market conditions.
- Soaring Eagle (SRNG) --> Ginkgo Bioworks $15B pact: -(0.7)%
- Aurora Acquisition (AURC) --> Better in a $7B deal: -(8.3)%
AURC was particularly hard hit after closing at $10.80 yesterday down to $9.90 following today's announcement.
Recently Announced M&A:
Most new deals continue to trade at Sub-NAV levels and have not been performing well.
May 11 | $ 9.87 | SRNG - Soaring Eagle Acquisition Corp. --> Ginkgo
May 11 | $ 9.90 | AURC - Aurora Acquisition Corp. --> Better
May 10 | $ 9.98 | LIVK - LIV Capital Acquisition Corp. --> AgileThought
May 10 | $ 9.91 | AUS - Austerlitz Acquisition Corporation I --> Wynn Interactive
May 10 | $ 9.90 | STPC - Star Peak Corp II --> Benson Hill, Inc.
May 10 | $ 9.85 | HCIC - Hennessy Capital Investment Corp. V --> Plus
May 07 | $ 10.10 | LSAQ - LIFE SCI ACQ II --> Science 37
May 07 | $ 9.88 | LOKB - Live Oak Acquisition Corp. II --> Navitas Semiconductor
May 07 | $ 9.88 | STWO - ACON S2 Acquisition Corp --> ESS TECHNOLOGY
May 06 | $ 9.93 | AMHC - Amplitude Healthcare Acquisition Corporation --> Jasper Therapeutics
Elsewhere... the new issue market has been quiet so far, with no new IPOs pricing and only a handful of S-1s filed.
Northern Star (STIC) set May-28 as the date for shareholders to vote on its proposed merger with BarkBox. Shareholders as of April-5 have the ability to vote.
Biggest SPAC Gainers
6.06% ~ $ 12.42 | AGC - ALTIMETER GROWTH CORP (Announced)
5.66% ~ $ 10.36 | OHPA - Orion Acquisition Corp. (Pre-Deal)
3.67% ~ $ 15.55 | SSPK - Silver Spike Acquisition Corp. (Announced)
2.59% ~ $ 10.28 | PDAC - Peridot Acquisition Corp (Announced)
2.04% ~ $ 9.90 | ROSS - Ross Acquisition Corp II (Pre-Deal)
1.73% ~ $ 10.02 | KAHC - KKR Acquisition Holdings I Corp (Pre-Deal)
1.63% ~ $ 10.00 | AMAO - American Acquisition Opportunity Inc (Pre-Deal)
1.57% ~ $ 10.34 | HSAQ - Health Sciences Acquisitions Corporation 2 (Pre-Deal)
1.45% ~ $ 9.95 | ENNV - ECP Environmental Growth Opportunities Corp. (Pre-Deal)
1.44% ~ $ 9.84 | GSQD - G Squared Ascend I Inc. (Pre-Deal)
Biggest SPAC Decliners
-19.92% ~ $ 25.60 | BRPA - Big Rock Partners Acquisition Corp (Announced)
-8.82% ~ $ 14.48 | MUDS - Mudrick Capital Acquisition Corporation II (Announced)
-7.33% ~ $ 15.17 | IPOE - Social Capital Hedosophia Holdings Corp V (Announced)
-6.41% ~ $ 10.80 | THCB - Tuscan Holdings Corp. (Announced)
-5.71% ~ $ 9.90 | AURC - Aurora Acquisition Corp. (Announced)
-5.43% ~ $ 13.93 | TPGY - TPG Pace Beneficial Finance Corp (Announced)
-3.58% ~ $ 10.50 | CMII - CM Life Sciences II Inc. (Announced)
-3.57% ~ $ 10.00 | DGNR - Dragoneer Growth Opportunities Corp (Announced)
-3.44% ~ $ 8.70 | EXPC - Experience Investment Corp (Announced)
-3.44% ~ $ 10.40 | SRAC - Stable Road Acquisition Corp. (Announced)
-3.02% ~ $ 10.44 | ARYD - ARYA Sciences Acquisition Corp IV (Pre-Deal)
More from Boardroom Alpha
For on-going tracking, analytics, and data on SPACs checkout Boardroom Alpha's SPAC Data and Analytics service.
- SPAC Deals and IPOE/SoFi Momentum
- Live Oak Acquisition II (LOKB) Taking Navitas Public in $1B SPAC Deal
- ACON S2 (STWO) Taking ESS Public in $1.1B SPAC Deal
- SPACs Get Beat Up Again
- Will Honest's IPO Take More Shine off SPACs?
- Tech Sell Off will Hit SPAC Stocks Hard
- Tuesday SPAC Ideas
- SPAC Activity Returns, Met with Lukewarm Response
- SPAC IPOs Return, and Flop
- A (small) Pickup in SPAC Activity & De-SPAC Returns
- GLEO and MRAC SPAC Deals Fall Flat
- Two SPAC Deals & 2021 Vintage SPACs are Cheap
- SPAC Mergers: GLEO and MRAC Strike Deals
- Remember SPACs? Market Focuses on Earnings
- Cathie Wood's ARK Sells former Chamath SPAC Virgin Galactic
(Disclaimers: this is not investment advice. The author may be long one or more stocks mentioned in this report.)