Spring Valley / AeroFarms Need More Capital

Revelation Biosciences striking a deal to go public via Petra Acquisition highlights a slow day in SPAC land. SV approves deal with AeroFarms but needs additional capital to close.
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SPACs got off to a slow start heading into the last week of the summer, with one merger and one IPO priced. However, performance continues to lag, and the average pre-deal SPAC is now trading at $9.74. See below for more and a summary of today's price action. 

Spring Valley and AeroFarms Need More Capital

Given the ever increasing level of SPAC trust redemptions over the last couple of months we've been seeing SPAC targets waive minimum cash requirements in order to get deals done and, thus, often leaving the companies with far less cash than originally anticipated. 

Today, Spring Valley Acquisition (SV) announced that while its shareholders approved the merger with AeroFarms given the level of redemptions they will not meet its minimum cash requirement, and thus are seeking additional capital. That capital will likely come from the existing AeroFarms shareholders and similar terms to the PIPE. 

As a reminder SV had a trust value of over $230M prior to redemptions and a PIPE of $125M to help finance the deal. The company hasn't specifically said how many shares were redeemed yet, and expects the deal to close in about a month if it can secure the additional funding. 

At the very least not simply waiving a minimum cash requirement is a positive for remaining SPAC Class A shareholders (if there are any) and the PIPE investors. 

See the Press Release

Petra Acquisition Strikes Deal with Revelation Biosciences

Petra Acquisition (PAIC) kicked off the merger activity this week, striking a $128M EV deal with clinical-stage life sciences company Revelation Biosciences.

The deal did not include a PIPE as part of its financing, and we have yet to see dedicated investor materials which is a gripe for many SPAC investors. 

Today's Price Action

Biggest Gainers

1.95% ~ $ 9.95 | CORS - Corsair Partnering Corporation (Pre-Deal)
1.60% ~ $ 10.15 | CHAQ - Chardan Healthcare Acquisition 2 Corp. (Announced)
1.25% ~ $ 10.54 | TPGY - TPG Pace Beneficial Finance Corp (Announced)
1.23% ~ $ 9.84 | MSDA - MSD Acquisition Corp. (Pre-Deal)
1.23% ~ $ 9.87 | FVAM - 501 ACQ CORP (Pre-Deal)
1.22% ~ $ 9.92 | SPK - SPK Acquisition Corp. (Pre-Deal)
1.01% ~ $ 16.06 | RICE - Rice Acquisition Corp. (Announced)
.94% ~ $ 9.65 | FTVI - FinTech Acquisition Corp. VI (Pre-Deal)
.93% ~ $ 9.74 | GPAC - Global Partner Acquisition Corp II (Pre-Deal)
.83% ~ $ 9.70 | IBER - Ibere Pharmaceuticals (Pre-Deal)
.73% ~ $ 9.71 | TBCP - Thunder Bridge Capital Partners III Inc. (Pre-Deal)
.72% ~ $ 9.76 | ATWO - two (Pre-Deal)
.72% ~ $ 9.84 | FACA - Figure Acquisition Corp. I (Pre-Deal)
.71% ~ $ 9.97 | NSTB - Northern Star Investment Corp. II (Announced)
.62% ~ $ 9.68 | PICC - Pivotal Investment Corporation III (Pre-Deal)
.62% ~ $ 9.68 | LHC - Leo Holdings Corp. II (Pre-Deal)

Biggest Losers

-14.68% ~ $ 7.15 | BLUW - Blue Water Acquisition Corporation (Announced)
-7.40% ~ $ 9.14 | SPNV - Supernova Partners Acquisition Company Inc (Announced)
-2.74% ~ $ 9.95 | SV - Spring Valley Acquisition Corp (Announced)
-1.83% ~ $ 9.65 | CLRM - Clarim Acquisition Corp. (Pre-Deal)
-1.22% ~ $ 9.68 | MITA - Coliseum Acquisition Corp. (Pre-Deal)
-1.20% ~ $ 9.61 | DRAY - Macondray Capital Acquisition Corp. I (Pre-Deal)
-1.06% ~ $ 9.84 | CFFE - CF Acquisition Corp. VIII (Pre-Deal)
-1.05% ~ $ 10.39 | CND - Concord Acquisition Corp (Announced)
-1.03% ~ $ 9.65 | CLAA - Colonnade Acquisition Corp. II (Pre-Deal)
-.95% ~ $ 9.65 | VII - 7GC & Co. Holdings Inc. (Pre-Deal)
-.92% ~ $ 9.66 | NSTC - Northern Star Investment Corp. III (Pre-Deal)
-.89% ~ $ 10.04 | FTCV - FinTech Acquisition Corp. V (Announced)
-.82% ~ $ 9.62 | KAIR - Kairos Acquisition Corp (Pre-Deal)
-.82% ~ $ 9.63 | TWLV - Twelve Seas Investment Company II (Pre-Deal)
-.81% ~ $ 9.75 | GSEV - Gores Holdings VII (Pre-Deal)
-.80% ~ $ 11.19 | TDAC - Trident Acquisitions Corp (Announced)
-.72% ~ $ 9.65 | GAMC - Golden Arrow Merger Corp. (Pre-Deal)
-.72% ~ $ 9.70 | EPWR - Empowerment & Inclusion Capital I Corp (Pre-Deal)

Upcoming Merger Votes

Aug 31 | $ 9.99 | CENH - Centricus Acquisition Corp. --> Arqit Limited
Sep 01 | $ 9.98 | GNPK - Genesis Park Acquisition Corp --> Redwire, LLC
Sep 03 | $ 9.98 | SOAC - Sustainable Opportunities Acquisition Corp. --> DeepGreen Metals Inc.
Sep 08 | $ 10.03 | SFTW - Osprey Technology Acquisition Corp. --> BlackSky
Sep 09 | $ 16.06 | RICE - Rice Acquisition Corp. --> Aria Energy & Achaea Energy
Sep 10 | $ 9.98 | QELL - Qell Acquisition Corp --> Lilium
Sep 14 | $ 9.96 | SRNG - Soaring Eagle Acquisition Corp. --> Ginkgo
Sep 14 | $ 10.00 | ACIC - Atlas Crest Investment Corp --> Archer Aviation
Sep 14 | $ 9.97 | PACE - TPG Pace Tech Opportunities Corp --> Nerdy Inc.
Sep 15 | $ 9.97 | DEH - D8 Holdings Corp. --> Vicarious Surgical Inc.
Sep 16 | $ 9.97 | CTAC - Cerberus Telecom Acquisition Corp --> Kore

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

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