BBQ to the Moon and More Zombie De-SPACs?

Eli Manning's BBQGuys is going public with Velocity (VELO). And, 5 SPAC deal votes in one day (TWND, RAAC, PSAC, GHVI, ACND) with 3 at risk for becoming Zombie De-SPACs.
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It's been a busy week already with 4 deals announced on Monday, Ackman's PSTH / UMG deal being terminated, another deal this morning (VELO picks BBQGuys), more SPAC IPOs, and a record 5 SPAC deal votes today. But, despite this "peak SPAC"-like activity, the overall market remains in a mid-summer funk. 

The average pre-deal SPAC -- and incredibly we're still hovering around 420 on any given day -- is now trading at $9.78. That's a massive discount to the $10 NAV. Given the continuing oversupply and general down trading it remains somewhat of a surprise that SPAC sponsors continue to bring more SPACs into the market, but, well incentives...

Recent SPAC IPOs aren't trading in a way that suggests more pre-deal SPACs are necessary in the market at this point. Here are some of the most recent:

$ 10.09 | CLAQ - cleantech Acquisition Corp.
$ 9.96 | UPTD - TradeUP Acquisition Corp
$ 9.96 | JATT - JATT Acquisition Corp
$ 9.94 | GWII - Good Works II Acquisition Corp.
$ 10.00 | GLTA - Galata Acquisition Corp
$ 10.01 | ACRO - Acropolis Infrastructure Acquisition Corp.
$ 9.86 | ALCC - AltC Acquisition Corp.
$ 10.06 | RICO - Agrico Acquisition Corp.
$ 9.91 | FICV - Frontier Investment Corp
$ 9.86 | DNAD - Social Capital Suvretta Holdings Corp. IV
$ 9.86 | DNAB - Social Capital Suvretta Holdings Corp. II
$ 9.94 | DRAY - Macondray Capital Acquisition Corp. I
$ 9.90 | DNAA - Social Capital Suvretta Holdings Corp. I
$ 9.98 | CORS - Corsair Partnering Corporation
$ 9.87 | DNAC - Social Capital Suvretta Holdings Corp. III
$ 10.09 | GGGV - G3 VRM Acquisition Corp.
$ 9.98 | SHQA - Shelter Acquisition Corporation I
$ 9.82 | GOBI - Gobi Acquisition Corp.
$ 9.95 | MCAF - Mountain Crest Acquisition Corp. IV
$ 9.92 | THCP - Thunder Bridge Capital Partners IV, Inc.
$ 10.00 | EOCW - Elliott Opportunity II Corp.
$ 10.09 | NLIT - Northern Lights Acquisition Corp.
$ 10.03 | FTVI - FinTech Acquisition Corp. VI
$ 9.91 | MITA - Coliseum Acquisition Corp.
$ 10.11 | GPCO - Golden Path Acquisition Corporation
$ 10.00 | JUGG - Jaws Juggernaut Acquisition Corporation
$ 9.99 | TRON - CORNER GROWTH ACQUISITION CORP. 2
$ 10.12 | DILA - Dila Capital Acquisition Corp
$ 9.99 | ZT - Zimmer Energy Transition Acquisition Corp.

Monday's Deal Announcements

Monday's four deal announcements were either mostly flat or down, and all are trading well below NAV ~$9.85 or below. Overall, there just isn't any excitement behind most of the SPAC activity and it is translating to sub-NAV pricing regardless of stage. 

Jul 19 | $ 9.85 | CPSR - Capstar Special Purpose Acquisition Corp. --> Gelesis Inc
Jul 19 | $ 9.84 | IIAC - Investindustrial Acquisition Corp. --> Ermenegildo Zegna
Jul 19 | $ 9.85 | OCA - Omnichannel Acquisition Corp --> Kin
Jul 19 | $ 9.81 | ENNV - ECP Environmental Growth Opportunities Corp. --> Fast Radius, Inc.

BBQGuy's Merging with Velocity (VELO)

Tuesday's deal may get some summer excitement as it is BBQ season and has a Manning as a pitchman. But, don't be surprised if there is little or even negative deal announcement pop on this one given the broader market and SPACs specifically.

Tuesday's SPAC Deal Votes

Tuesday will see 5 SPAC deal votes and with 3 of them trading in the high $8 range it will be interesting to watch the redemptions. As SPAC watchers know, there have been a number of large redemptions over the past couple of months -- the FGNA / OppFi deal just announced $148M in redemptions which is equal to ~62% of trust --, even in some cases where deals are trading near NAV. 

ICYMI, we wrote about a big risk that many SPAC investors hadn't appreciated until recently that may come into play here. Essentially, will those investors who choose not to redeem be left owning shares in Zombie De-SPACs -- or companies that suffer large redemptions leaving their cash influx insufficient to deliver on the promise of the original deal. 

Jul 20 | $ 8.70 | TWND - Tailwind Acquisition Corp --> QOMPLX, Inc.
Jul 20 | $ 8.66 | RAAC - Revolution Acceleration Acquisition Corp --> Berkshire Grey
Jul 20 | $ 13.62 | PSAC - Property Solutions Acquisition Corp --> Faraday Future
Jul 20 | $ 13.25 | GHVI - Gores Holdings VI Inc --> Matterport, Inc.
Jul 20 | $ 8.79 | ACND - Ascendant Digital Acquisition Corp --> Beacon Street Group

SPAC IPOs

The SPACs keep coming despite the soggy market.

  • TRTL/U TortoiseEcofin III: $300M, 1/4 W, energy/sustainability
  • CLOE/U Clover Leaf: $125M, 1R (1/8 share), cannabis
  • CLAY/U Chavant Capital: $80M (downsize), 3/4 W, manufacturing

Deal Approvals

  • FGNA approves merger w/ OppFi. OPFI trades 7/21. $148M in redemptions, $91.4M left in trust. 62% redemptions 
  • ANDA approves merger w/ Stryve foods. SNAX trades 7/21. ~$7.6M in redemptions, 7% of trust

Monday's SPAC Movers

Biggest Gainers

5.49% ~ $ 12.69 | TPGY - TPG Pace Beneficial Finance Corp (Announced)
4.83% ~ $ 11.94 | CMLF - CM Life Sciences Inc (Announced)
3.91% ~ $ 10.90 | SRAC - Stable Road Acquisition Corp. (Announced)
2.77% ~ $ 10.00 | GGMC - Glenfarne Merger Corp. (Pre-Deal)
2.71% ~ $ 13.62 | PSAC - Property Solutions Acquisition Corp (Announced)
1.96% ~ $ 9.90 | VCVC - 10X Capital Venture Acquisition Corp (Announced)
1.92% ~ $ 9.55 | NHIC - NewHold Investment Corporation (Announced)
1.88% ~ $ 11.38 | THCB - Tuscan Holdings Corp. (Announced)
1.65% ~ $ 9.87 | AMPI - Advanced Merger Partners, Inc. (Pre-Deal)
1.42% ~ $ 11.41 | CMII - CM Life Sciences II Inc. (Announced)
1.12% ~ $ 10.85 | AGC - ALTIMETER GROWTH CORP (Announced)
1.02% ~ $ 9.95 | ORIA - Orion Biotech Opportunities Corp. (Pre-Deal)
.82% ~ $ 9.82 | ADER - 26 Capital Acquisition Corp (Pre-Deal)
.82% ~ $ 9.87 | TSIB - Tishman Speyer Innovation Corp. II (Pre-Deal)
.72% ~ $ 9.76 | QFTA - Quantum FinTech Acquisition Corp (Pre-Deal)
.72% ~ $ 9.81 | ENNV - ECP Environmental Growth Opportunities Corp. (Announced)
.70% ~ $ 10.04 | DFNS - LGL Systems Acquisition Corp (Announced)
.62% ~ $ 9.73 | AGGR - Agile Growth Corp. (Pre-Deal)
.61% ~ $ 9.85 | EUCR - Eucrates Biomedical Acquisition Corp (Pre-Deal)
.61% ~ $ 9.85 | CPSR - Capstar Special Purpose Acquisition Corp. (Announced)

Biggest Losers

-10.27% ~ $ 10.05 | FGNA - FG New America Acquisition Corp (Announced)
-6.55% ~ $ 8.70 | TWND - Tailwind Acquisition Corp (Announced)
-5.77% ~ $ 8.90 | ANDA - Andina Acquisition Corp. III (Announced)
-5.74% ~ $ 11.65 | FST - FAST ACQ CP (Announced)
-3.81% ~ $ 11.11 | TDAC - Trident Acquisitions Corp (Announced)
-3.78% ~ $ 8.66 | RAAC - Revolution Acceleration Acquisition Corp (Announced)
-3.72% ~ $ 8.79 | ACND - Ascendant Digital Acquisition Corp (Announced)
-3.34% ~ $ 9.84 | IIAC - Investindustrial Acquisition Corp. (Announced)
-2.78% ~ $ 10.49 | BOWX - BowX Acquisition Corp (Announced)
-2.62% ~ $ 10.47 | BLSA - BCLS Acquisition Corp. (Pre-Deal)
-2.59% ~ $ 22.20 | CCIV - Churchill Capital Corp IV (Announced)
-2.19% ~ $ 10.28 | CND - Concord Acquisition Corp (Announced)
-1.68% ~ $ 9.63 | VLAT - Valor Latitude Acquisition Corp. (Pre-Deal)
-1.68% ~ $ 9.95 | DMYI - dMY Technology Group Inc III (Announced)
-1.64% ~ $ 16.76 | RICE - Rice Acquisition Corp. (Announced)
-1.43% ~ $ 9.67 | TMPM - Turmeric Acquisition Corp (Pre-Deal)
-1.41% ~ $ 13.25 | GHVI - Gores Holdings VI Inc (Announced)
-1.33% ~ $ 9.66 | LDHA - LDH Growth Corp I (Pre-Deal)

SPAC Yield Opportunities

With the average SPAC trading so far below NAV, it is a big opportunity for those looking for safe yield (assuming they execute redemption at $10). Here are some of the SPACs trading at the largest discounts which translates to higher yields:

-4.20% | FLME - Flame Acquisition Corp. (Pre-Deal)
-4.00% | MSAC - Medicus Sciences Acquisition Corp. (Pre-Deal)
-4.00% | MBAC - M3-Brigade Acquisition II Corp (Pre-Deal)
-4.00% | GLHA - Glass Houses Acquisition Corp. (Pre-Deal)
-4.00% | KSIC - Kadem Sustainable Impact Corporation (Pre-Deal)
-4.00% | PSAG - Property Solutions Acquisition Corp. II (Pre-Deal)
-4.00% | CLBR - Colombier Acquisition Corp. (Pre-Deal)
-3.90% | OSI - Osiris Acquisition Corp. (Pre-Deal)
-3.90% | AGAC - African Gold Acquisition Corporation (Pre-Deal)
-3.90% | ITHX - ITHAX Acquisition Corp. (Pre-Deal)
-3.90% | CPAR - Catalyst Partners Acquisition Corp. (Pre-Deal)
-3.90% | PUCK - Goal Acquisitions Corp. (Pre-Deal)
-3.90% | POND - Angel Pond Holdings Corp (Pre-Deal)
-3.80% | NBST - Newbury Street Acquisition Corporation (Pre-Deal)
-3.80% | EAC - Edify Acquisition Corp. (Pre-Deal)
-3.80% | BRIV - B. Riley Principal 250 Merger Corp. (Pre-Deal)
-3.80% | TUGC - TradeUP Global Corp (Pre-Deal)
-3.80% | LVRA - Levere Holdings Corp (Pre-Deal)
-3.70% | EQHA - EQ Health Acquisition Corp (Pre-Deal)
-3.70% | MIT - Mason Industrial Technology, Inc. (Pre-Deal)
-3.70% | KIII - Kismet Acquisition Three Corp. (Pre-Deal)
-3.70% | NRAC - Noble Rock Acquisition Corporation (Pre-Deal)
-3.70% | CPTK - Crown PropTech Acquisitions (Pre-Deal)
-3.70% | BITE - Bite Acquisition Corp. (Pre-Deal)
-3.66% | VLAT - Valor Latitude Acquisition Corp. (Pre-Deal)
-3.60% | IBER - Ibere Pharmaceuticals (Pre-Deal)
-3.60% | FTEV - FinTech Evolution Acquisition Group (Pre-Deal)
-3.60% | FSNB - Fusion Acquisition Corp. II (Pre-Deal)
-3.60% | ITQ - Itiquira Acquisition Corp. (Pre-Deal)
-3.60% | ACAH - Atlantic Coastal Acquisition Corp. (Pre-Deal)
-3.60% | ANZU - Anzu Special Acquisition Corp I (Pre-Deal)
-3.60% | ARRW - Arrowroot Acquisition Corp. (Pre-Deal)
-3.60% | TWLV - Twelve Seas Investment Company II (Pre-Deal)
-3.60% | ASAX - Astrea Acquisition Corp. (Pre-Deal)
-3.55% | PTOC - Pine Technology Acquisition Corp. (Pre-Deal)
-3.50% | OSTR - Oyster Enterprises Acquisition Corp. (Pre-Deal)
-3.50% | JCIC - Jack Creek Investment Corp. (Pre-Deal)
-3.50% | BSKY - Big Sky Growth Partners, Inc. (Pre-Deal)
-3.50% | TBSA - TB SA Acquisition Corp (Pre-Deal)
-3.50% | TCAC - Tuatara Capital Acquisition Corporation (Pre-Deal)
-3.50% | OPA - Magnum Opus Acquisition Limited (Pre-Deal)
-3.50% | KAII - Kismet Acquisition Two Corp. (Pre-Deal)
-3.50% | ROSS - Ross Acquisition Corp II (Pre-Deal)
-3.50% | GXII - GX Acquisition Corp. II (Pre-Deal)
-3.50% | MACC - Mission Advancement Corp. (Pre-Deal)
-3.50% | ZWRK - Z-Work Acquisition Corp. (Pre-Deal)
-3.50% | DISA - Disruptive Acquisition Corp I (Pre-Deal)
-3.50% | BGSX - Build Acquisition Corp. (Pre-Deal)
-3.50% | TSPQ - TCW Special Purpose Acquisition Corp (Pre-Deal)
-3.50% | PMGM - Priveterra Acquisition Corp. (Pre-Deal)
-3.50% | COVA - Crescent Cove Acquisition Corp. (Pre-Deal)
-3.50% | SBEA - SilverBox Engaged Merger Corp I (Pre-Deal)
-3.50% | SPTK - SportsTek Acquisition Corp. (Pre-Deal)
-3.50% | GMBT - Queen’s Gambit Growth Capital (Pre-Deal)
-3.50% | CLRM - Clarim 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.)