Tuesday was a painful day for the whole market, but SPAC investors were hit especially hard as there seemed nowhere to hide. 20 SPACs were down over 3%, RICE, THCB, STPK, RSVA, NGA, FSRV, CCIV, and STIC were all down over over 5.5%, and there are now 244 pre-deal SPACs trading under $10.
** For on-going tracking, analytics, and data on SPACs checkout Boardroom Alpha's SPAC Data and Analytics service. **
The average pre-deal SPAC is now trading at $9.91 which means that there is a lot of opportunity for the "yield + optionality" play. However, increasingly investors are hesitant to jump in given the feeling that the upside is more limited as deals aren't popping as they used to and both the post deal announcement and post de-SPAC periods are seeing the air let out of the price balloon quickly.
The overall SPAC mood is becoming increasingly sour as prices across the board take a hit and there is little good news in terms of merger announcements or post-deal execution to raise spirits (remember how great DMYD's Genius Sports / NFL deal felt?).
The financial press is helping push the sour narrative with increasing coverage of short sellers, SPACs that had spectacular rise and falls (NKLA anyone?), and little talk of the core investment opportunity with limited downside if bought at the right point.
There are a few SPACs coming up for extension or deal acceptance votes. If any of these don't go through expect to see some real noise in the media and on FinTwit. One to watch is Tuscan Holdings (THCB) which is trying to take Microvast (EV battery technology) public.
THCB has been working hard to drum up enough votes from shareholders in favor of an extension amendment that would enable THCB/Microvast the time necessary to complete the deal. The vote is schedule to happen on April 28th and they have now sent at least 3 reminders via press release with the last one coming yesterday -- expect more. If there aren't enough votes to extend then THCB may need to be dissolved at which point shares would be redeemed for approximately $10.22 per share. THCB common shares closed at $10.73 yesterday, which would be a loss.
And, there you have the secret that SPAC investors know. The optionality to redeem gives them a backstop against major losses, yield if bought below NAV, and upside potential.
With so many SPACs below NAV, some investors will want to prioritize looking at repeat sponsors with at least 1 de-SPAC and SPACs currently trading at a discount.
** B. Riley (3 SPACs)
$ 9.71 | BRPM - B. Riley Principal 150 Merger Corp. (Pre-Transaction)
** Cantor Fitzgerald (8 SPACs)
$ 9.78 | CFIV - CF Acquisition Corp. IV (Pre-Transaction)
$ 9.87 | CFV - CF Acquisition Corp. V (Pre-Transaction)
$ 9.82 | CFVI - CF Acquisition Corp. VI (Pre-Transaction)
** Cohen & Company (5 SPACs)
$ 9.86 | IIII - INSU Acquisition Corp. III (Pre-Transaction)
** Fortress (6 SPACs)
$ 9.93 | FVT - Fortress Value Acquisition Corp. III (Pre-Transaction)
$ 9.86 | FCAX - Fortress Capital Acquisition Corp (Pre-Transaction)
** Gores (10 SPACs)
$ 9.93 | GSEV - Gores Holdings VII (Pre-Transaction)
** Hennessy Capital (6 SPACs)
$ 9.76 | HCIC - Hennessy Capital Investment Corp. V (Pre-Transaction)
** Jonathan J. Ledecky, Kevin Griffin (3 SPACs)
$ 9.94 | PICC - Pivotal Investment Corporation III (Pre-Transaction)
** M. Klein and Company (8 SPACs)
$ 9.90 | CCVI - Churchill Capital Corp VI (Pre-Transaction)
$ 9.81 | CVII - Churchill Capital Corp VII (Pre-Transaction)
$ 9.95 | CCV - Churchill Capital Corp V (Pre-Transaction)
Recent Merger Announcements
For SPAC investors that want the certainty of knowing which company a SPAC will take public and is excited about that narrative and possible upside on great execution news.
Apr 19 | 1.0% ~ $ 10.10 | DBDR - Roman DBDR Tech Acquisition Corp.
Apr 15 | -.7% ~ $ 9.93 | DEH - D8 Holdings Corp.
Apr 15 | -1.2% ~ $ 9.88 | CHFW - Consonance-HFW Acquisition Corp
Apr 14 | -.9% ~ $ 9.91 | ROCC - Roth CH Acquisition II Co.
Apr 14 | 10.1% ~ $ 11.01 | BCTG - BCTG Acquisition Corp.
Apr 13 | 27.2% ~ $ 12.72 | AGC - ALTIMETER GROWTH CORP
Apr 08 | 38.5% ~ $ 13.85 | RICE - Rice Acquisition Corp.
Apr 08 | -1.0% ~ $ 9.90 | TWCT - TWC Tech Holdings II Corp
Apr 07 | -2.1% ~ $ 9.79 | CAHC - CA Healthcare Acquisition Corp.
Apr 07 | -.7% ~ $ 9.93 | MCAD - Mountain Crest Acquisition Corp. II
Apr 06 | 20.8% ~ $ 12.08 | MUDS - Mudrick Capital Acquisition Corporation II
Apr 06 | -.8% ~ $ 9.92 | ROT - Rotor Acquisition Corp
More from Boardroom Alpha
For on-going tracking, analytics, and data on SPACs checkout Boardroom Alpha's SPAC Data and Analytics service.
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