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SPACs Approaching Votes Slide in Anticipation of High Redemptions

CCAC, ENNV, IVAN, MCMJ, and ENVI all fall big. BREZ and ASPA both strike SPAC deals.

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We've been talking for months now how redemptions in SPACs have been skyrocketing averaging ~80% for the month of January. This has been a large part why deSPAC companies have been performing so poorly off the bat. As a result, we're starting to see SPACs approaching merger vote fall more drastically than we've seen in the past, once the $10 floor goes away (ex-redemption). 

As evidenced by the price moves today for 5 SPACs that vote early next week:

  • CCAC down -9.99% to $8.92
  • ENNV down -10.54% to $8.40
  • IVAN down -17.94% to $8.19
  • MCMJ down -28.43% to $7.15
  • ENVI down -5.55% to $9.44

All 5 of these SPACs seem to be at risk for a very elevated redemption number. Traders are such anticipating a potential gamma squeeze and are positioning accordingly. Remember, prices on low-float highly, redeemed SPACs tend to move fast and furiously. 

Recent De-SPACs a Sea of Red

despac127

However, a friendly reminder Robinhood (HOOD) is not a member of the deSPAC club.

Elsewhere in SPACs

De-SPACs closed

  • Bill Foley's Trebia Acquisition Corp (TREB) officially closed its deal with System1 and will begin trading tomorrow, 1/28, as SST
  • Sports Entertainment Acquisition Corp (SEAH) also officially closed its deal with Super Group and will begin trading under its new ticker tomorrow SGHC

Extension Votes:

  • SCVX Corp (SCVX) approved extension out to July-28, but 84% of the SPAC's shares (19.2M) redeemed
  • Lionheart Acquisition Corp II (LCAP) approved extension out to Aug-18 and saw 47% of the SPAC's shares (10.9M) redeem. They have a pending deal with MSP Recovery, reminder that is valued at a whopping $32.6B EV

Merger Announcements:

  • Breeze Holdings Acquisition Corp (BREZ) is taking space solutions company D-Orbit public in a $1.2B deal. $5.5M of PIPE and $59M of converts in the financing. BREZ warrants fell ~30% on the day to $0.26
  • Abri SPAC I (ASPA) struck a deal with digital assets trading platform Apifiny in a $530M deal with no PIPE. ASPA has just $57M in trust. Its warrants also took a 12.5% hit on the news to $0.42 

SPAC Calendar

Jan 31 | $ 8.92 | CCAC - CITIC Capital Acquisition Corp --> Quanergy Systems
Jan 31 | $ 8.40 | ENNV - ECP Environmental Growth Opportunities Corp. --> Fast Radius, Inc.
Feb 01 | $ 7.15 | MCMJ - Merida Merger Corp. I --> Leafly Holdings, Inc.
Feb 01 | $ 9.25 | ENVI - Environmental Impact Acquisition Corp. --> Greenlight Biosciences Inc.
Feb 01 | $ 8.19 | IVAN - Ivanhoe Capital Acquisition Corp --> SES Holdings
Feb 03 | $ 9.97 | SBEA - SilverBox Engaged Merger Corp I --> Black Rifle Coffee Company
Feb 08 | $ 10.17 | TVAC - Thayer Ventures Acquisition Corporation --> Inspirato LLC
Feb 09 | $ 9.97 | GCAC - Growth Capital Acquisition Corp. --> Cepton Technologies, Inc
Feb 09 | $ 9.97 | MBAC - M3-Brigade Acquisition II Corp --> Syniverse Corp

Today's Price Action

Biggest Gainers

2.16% ~ $ 9.94 | FWAC - Fifth Wall Acquisition Corp. III (Pre-Deal)
1.63% ~ $ 9.96 | TLGY - TLGY Acquisition Corp (Pre-Deal)
1.14% ~ $ 9.74 | PEGR - Project Energy Reimagined Acquisition Corp. (Pre-Deal)
1.13% ~ $ 9.99 | ALOR - ALSP Orchid Acquisition Corp I (Pre-Deal)
1.12% ~ $ 9.91 | ACAH - Atlantic Coastal Acquisition Corp. (Announced)
.93% ~ $ 9.74 | ARYE - ARYA Sciences Acquisition Corp V (Pre-Deal)
.88% ~ $ 10.33 | MEKA - MELI Kaszek Pioneer Corp (Pre-Deal)
.83% ~ $ 9.70 | LOCC - Live Oak Crestview Climate Acquisition Corp. (Pre-Deal)
.82% ~ $ 9.69 | SEDA - SDCL EDGE Acquisition Corp (Pre-Deal)
.72% ~ $ 9.77 | MSDA - MSD Acquisition Corp. (Pre-Deal)
.62% ~ $ 9.81 | BHAC - Crixus BH3 Acquisition Corp. (Pre-Deal)
.61% ~ $ 9.85 | ARIZ - Arisz Acquisition Corp. (Announced)
.61% ~ $ 9.91 | NPAB - New Providence Acquisition Corp. II (Pre-Deal)
.60% ~ $ 10.05 | OCAX - OCA Acquisition Corp (Pre-Deal)
.58% ~ $ 9.88 | GMBT - Queen’s Gambit Growth Capital (Announced)
.51% ~ $ 9.79 | CCVI - Churchill Capital Corp VI (Pre-Deal)
.46% ~ $ 9.87 | WALD - Waldencast Acquisition Corp. (Announced)
.42% ~ $ 9.64 | HCVI - Hennessy Capital Investment Corp. VI (Pre-Deal)
.41% ~ $ 9.73 | GXII - GX Acquisition Corp. II (Pre-Deal)
.41% ~ $ 9.79 | KLAQ - KL Acquisition Corp (Pre-Deal)

Biggest Losers

-28.43% ~ $ 7.15 | MCMJ - Merida Merger Corp. I (Announced)
-22.60% ~ $ 10.31 | VMAC - Vistas Media Acquisition Company Inc. (Announced)
-17.94% ~ $ 8.19 | IVAN - Ivanhoe Capital Acquisition Corp (Announced)
-10.54% ~ $ 8.40 | ENNV - ECP Environmental Growth Opportunities Corp. (Announced)
-9.99% ~ $ 8.92 | CCAC - CITIC Capital Acquisition Corp (Announced)
-7.41% ~ $ 9.25 | ENVI - Environmental Impact Acquisition Corp. (Announced)
-4.27% ~ $ 66.43 | DWAC - Digital World Acquisition Corp. (Announced)
-3.75% ~ $ 10.26 | GGPI - Gores Guggenheim, Inc (Announced)
-2.03% ~ $ 11.12 | CFVI - CF Acquisition Corp. VI (Announced)
-1.82% ~ $ 9.70 | LCW - Learn CW Investment Corp (Pre-Deal)
-1.70% ~ $ 9.84 | OLIT - OmniLit Acquisition Corp. (Pre-Deal)
-1.53% ~ $ 9.65 | BGSX - Build Acquisition Corp. (Pre-Deal)
-1.40% ~ $ 9.87 | LGST - Semper Paratus Acquisition Corp (Pre-Deal)
-1.30% ~ $ 9.87 | PACI - PROOF Acquisition Corp I (Pre-Deal)
-1.25% ~ $ 10.30 | ESSC - East Stone Acquisition Corporation (Announced)
-1.12% ~ $ 9.70 | STET - ST Energy Transition I Ltd. (Pre-Deal)
-1.12% ~ $ 9.73 | SAMA - Schultze Special Purpose Acquisition Corp. II (Pre-Deal)
-1.11% ~ $ 9.81 | INTE - Integral Acquisition Corp 1 (Pre-Deal)
-1.02% ~ $ 9.73 | BLSA - BCLS Acquisition Corp. (Pre-Deal)
-.91% ~ $ 9.80 | IPOF - Social Capital Hedosophia Holdings Corp VI (Pre-Deal)

More from Boardroom Alpha

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