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Spring Valley (SV) and AeroFarms end SPAC Merger

Highlighting a major risk of high redemptions, Spring Valley and AeroFarms abandoned their plans to merge.

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Spring Valley + AeroFarms Cancel Merger

Despite getting shareholder approval back in August, today Spring Valley Acquisition Corp (SV) and AeroFarms called off their merger agreement. As you may recall, the companies noted that while shareholder approval was met, due to redemptions (they declined to list a number) the minimum cash requirement to close would not be met. 

Seemingly unable to secure additional sources of financing in the interim, the merger is now dead. In an environment of high SPAC redemptions we've seen scores of companies waive min cash requirements to get deals done, but in this case it was too much to overcome. 

SV actually traded up +10.46% on the news, approaching $10 at $9.93 as they gear up to go back to square one and find a new target. 

Elsewhere in SPACs

Legato Merger Corp. (LEGO) shareholders approved its merger with Algoma Steel with just 716 shares redeemed, not surprising given LEGO has been trading above NAV for months. Expect the transaction to close next week and trade as ASTL

ACE Convergence Acquisition Corp (ACEV) announced a $936M EV deal for Tempo Automation. The deal financing includes $161M in various securities, inclusive of a $82M PIPE. The terms also call for up to $95M in redemption backstops. ACEV closed slightly up at $9.93 today.  

Recent IPOs

Oct 14 | $ 10.07 | BMAC - Black Mountain Acquisition Corp.
Oct 13 | $ 9.92 | TRIS - Tristar Acquisition I Corp.
Oct 13 | $ 10.07 | ROSE - Rose Hill Acquisition Corp
Oct 12 | $ 9.94 | GIAC - Gesher I Acquisition Corp.
Oct 12 | $ 9.98 | FATP - FAT PROJECTS ACQUISITION CORP

Today's Price Action

Biggest Gainers

10.61% ~ $ 11.68 | LOKB - Live Oak Acquisition Corp. II (Announced)
10.46% ~ $ 9.93 | SV - Spring Valley Acquisition Corp (Pre-Deal)
9.30% ~ $ 11.28 | HZAC - HORIZON ACQ CP (Announced)
4.46% ~ $ 10.54 | AGC - Altimeter Growth Corp. (Announced)
2.56% ~ $ 10.00 | THCP - Thunder Bridge Capital Partners IV, Inc. (Pre-Deal)
2.20% ~ $ 11.62 | TDAC - Trident Acquisitions Corp (Announced)
2.04% ~ $ 11.50 | LEGO - LEGATO MERGER CORP. (Announced)
1.95% ~ $ 9.95 | BWC - Blue Whale Acquisition Corp I (Pre-Deal)
1.95% ~ $ 9.95 | MON - Monument Circle Acquisition Corp (Pre-Deal)
.83% ~ $ 9.74 | APMI - AxonPrime Infrastructure Acquisition Corp (Pre-Deal)
.83% ~ $ 9.74 | PUCK - Goal Acquisitions Corp. (Pre-Deal)
.77% ~ $ 9.80 | ESM - ESM Acquisition Corporation (Pre-Deal)
.74% ~ $ 24.48 | PCPC - Periphas Capital Partnering Corporation (Pre-Deal)
.72% ~ $ 9.75 | LVRA - Levere Holdings Corp (Pre-Deal)
.72% ~ $ 9.78 | ADER - 26 Capital Acquisition Corp (Pre-Deal)
.71% ~ $ 9.75 | ZT - Zimmer Energy Transition Acquisition Corp. (Pre-Deal)
.66% ~ $ 9.94 | BLSA - BCLS Acquisition Corp. (Pre-Deal)
.62% ~ $ 9.75 | GXII - GX Acquisition Corp. II (Pre-Deal)

Biggest Losers

-4.73% ~ $ 9.46 | VIH - VPC Impact Acquisition Holdings (Announced)
-2.20% ~ $ 9.76 | HCNE - Jaws Hurricane Acquisition Corporation (Pre-Deal)
-1.50% ~ $ 9.84 | BOWX - BowX Acquisition Corp (Announced)
-1.26% ~ $ 9.67 | NBST - Newbury Street Acquisition Corporation (Pre-Deal)
-1.22% ~ $ 9.71 | BYTS - BYTE Acquisition Corp. (Pre-Deal)
-1.13% ~ $ 9.65 | CRZN - Corazon Capital V838 Monoceros Corp (Pre-Deal)
-1.10% ~ $ 9.85 | GLTA - Galata Acquisition Corp (Pre-Deal)
-.92% ~ $ 9.70 | ALPA - ALPHA HEALTHCARE ACQUISITION CORP III (Pre-Deal)
-.92% ~ $ 9.71 | CPAA - Conyers Park III Acquisition Corp. (Pre-Deal)
-.80% ~ $ 9.87 | DCRD - Decarbonization Plus Acquisition Corp IV (Pre-Deal)
-.79% ~ $ 12.60 | MEKA - MELI Kaszek Pioneer Corp (Pre-Deal)
-.70% ~ $ 9.88 | FOXW - FoxWayne Enterprises Acquisition Corp. (Pre-Deal)
-.61% ~ $ 9.72 | OEPW - One Equity Partners Open Water I Corp. (Pre-Deal)
-.61% ~ $ 9.74 | MCAF - Mountain Crest Acquisition Corp. IV (Pre-Deal)
-.61% ~ $ 9.74 | SCAQ - Stratim Cloud Acquisition Corp. (Pre-Deal)
-.60% ~ $ 9.92 | HLXA - HELIX ACQUISITION CORP (Announced)
-.55% ~ $ 9.72 | TMAC - The Music Acquisition Corporation (Pre-Deal)
-.51% ~ $ 9.69 | BITE - Bite Acquisition Corp. (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.)Daily SPAC Analysis also available at BoardroomAlpha.com