SPACs Rise, RIDE Plunges on Going Concern

Lordstown Motors (RIDE) is in a free fall after issuing a going concern, while CLOV is rising again. SPACs generally rose on the day, THBR and CAPA are set to vote tomorrow.
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SPAC sentiment continues its relative turnaround, and several high profile SPACs rose big today (see below). In addition, the average pre-deal SPAC continues to creep higher, and now stands at $9.84.

However, the SPAC rhetoric of the day was mostly dominated by two De-SPACs, for two vastly different reasons:

  1. Clover Health (CLOV) continues its reclamation story, up over 85% today, albeit on no major news. 
  2. Lordstown Motors (RIDE) is tanking on the back of its 10-Q release, down over 16% today

RIDE Plunges on Going Concern

Lordstown Motors (RIDE), the now much maligned EV truck maker, is tanking after the company (finally) filed its 10-Q which included a going concern notice regarding its cash position. 

“Our current level of cash is not sufficient to fund commercial scale production and the launch of sale of such vehicles. These conditions raise substantial doubt regarding our ability to continue as a going concern”

This follows their earnings release a few weeks ago in which the company slashed production expectations and noted a potential need for a capital raise. However, the going concern in today's filing is a bit more drastic and concerning for investors. 

Lordstown, who went public via DiamondPeak Holdings Corp. in a merger that closed in October 2020, is not helping the De-SPAC narrative of overly confident (or potentially misleading) financial projections given it's financial position is so drastically different than what they expected just a short while ago. 

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SPAC M&A Rumors

Horizon Acquisition Corp 2 (HZON) and Sportradar deal is reportedly off:

Bloomberg is reporting that Solid Power, a solid state battery company backed by Ford  (F) - Get Report, is in talks to go public via Decarbinization Plus 3 (DCRC). The deal is rumored to carry ~$1.2B EV. DCRC closed up over 6% on the news to $10.65. 

M&A Votes

ARYA Sciences Acquisition Corp III (ARYA), shareholders passed its merger vote with Nautilus and expect to close the transaction June-9. They did not disclose any redemptions, shares closed at $10.68.

Tomorrow look out for votes from:

  • Thunder Bridge (THBR) & Indie Semiconductor. Closed at $10.35
  • HighCape Capital (CAPA) & Quantum-Si. Closed at $10.55

Biggest SPAC Gainers

Tuscan Holdings Corp (THCB) rose the most today over 17% as the company set its record date (June-21) and vote date (July-16) for its merger vote date with Microvast (MVST)

17.60% ~ $ 14.10 | THCB - Tuscan Holdings Corp. (Announced)
17.39% ~ $ 18.90 | RSVA - Rodgers Silicon Valley Acquisition Corp (Announced)
11.09% ~ $ 11.62 | HOL - Holicity Inc (Announced)
8.23% ~ $ 11.97 | SRAC - Stable Road Acquisition Corp. (Announced)
7.93% ~ $ 15.38 | GHVI - Gores Holdings VI Inc (Announced)
7.06% ~ $ 12.29 | FTCV - FinTech Acquisition Corp. V (Announced)
7.05% ~ $ 11.69 | LCY - Landcadia Holdings III Inc (Announced)
6.61% ~ $ 10.65 | DCRC - Decarbonization Plus Acquisition Corporation III (Pre-Deal)
6.56% ~ $ 14.29 | LACQ - Leisure Acquisition Corp. (Announced)
4.65% ~ $ 13.04 | TDAC - Trident Acquisitions Corp (Announced)
4.38% ~ $ 12.40 | CMLF - CM Life Sciences Inc (Announced)
4.31% ~ $ 11.14 | APXT - Apex Technology Acquisition Corporation (Announced)
4.24% ~ $ 13.52 | TPGY - TPG Pace Beneficial Finance Corp (Announced)
4.01% ~ $ 14.52 | FSRV - FinServ Acquisition Corp (Announced)
3.97% ~ $ 10.47 | VACQ - Vector Acquisition Corp (Announced)
3.47% ~ $ 11.04 | AHAC - Alpha Healthcare Acquisition Corp (Announced)
3.19% ~ $ 10.35 | THBR - Thunder Bridge Acquisition II, Ltd (Announced)
2.97% ~ $ 10.39 | FRX - Forest Road Acquisition Corp (Announced)
2.93% ~ $ 13.00 | FST - FAST ACQ CP (Announced)
2.60% ~ $ 10.25 | VGAC - VG Acquisition Corp (Announced)

Biggest SPAC Losers

-4.88% ~ $ 9.75 | RKTA - Rocket Internet Growth Opportunities Corp. (Pre-Deal)
-3.58% ~ $ 13.72 | CLII - Climate Change Crisis Real Impact I Acquisition Corp (Announced)
-2.28% ~ $ 9.81 | MAQC - Maquia Capital Acquisition Corporation (Pre-Deal)
-1.73% ~ $ 9.68 | MACC - Mission Advancement Corp. (Pre-Deal)
-1.65% ~ $ 10.16 | HAAC - Health Assurance Acquisition Corp (Pre-Deal)
-1.63% ~ $ 9.68 | LIII - Leo Holdings III Corp (Pre-Deal)
-1.51% ~ $ 9.79 | CLAA - Colonnade Acquisition Corp. II (Pre-Deal)
-1.46% ~ $ 10.11 | LSAQ - LIFE SCI ACQ II (Announced)
-1.37% ~ $ 10.05 | GTPA - Gores Technology Partners, Inc (Pre-Deal)
-1.21% ~ $ 9.80 | FACT - Freedom Acquisition I Corp (Pre-Deal)
-1.11% ~ $ 9.83 | HZON - Horizon Acquisition Corporation II (Pre-Deal)
-1.10% ~ $ 9.88 | SRSA - Sarissa Capital Acquisition Corp (Pre-Deal)
-.98% ~ $ 9.95 | WALD - Waldencast Acquisition Corp. (Pre-Deal)
-.96% ~ $ 13.38 | PSAC - Property Solutions Acquisition Corp (Announced)
-.95% ~ $ 10.38 | VIH - VPC Impact Acquisition Holdings (Announced)
-.94% ~ $ 18.99 | ACTC - ArcLight Clean Transition Corp (Announced)
-.92% ~ $ 9.70 | WARR - Warrior Technologies Acquisition Company (Pre-Deal)
-.91% ~ $ 9.78 | PFDR - Pathfinder Acquisition Corporation (Pre-Deal)

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