SPAC Morning: PTK and Legato Strike Deals. Lordstown Continues Dive
Two SPAC deals and an IPO to kick off Tuesday. Lordstown Motors continues to fall.
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PTK Acquisition Corp (PTK) is merging with
Valens Semiconductor in a deal valued at $894M, supported by a $125M PIPE
Legato Merger Corp (LEGO) struck a deal with
Algoma Steel valued at $1.7B EV and supported by a $100M PIPE
In Other SPAC News:
Lordstown Motors (RIDE) continues to trade demonstrably lower following its earnings call yesterday in which the company slashed production expectations and noted a need for a capital raise.
Fifth Wall Acquisition III (FWAC) priced its $250M IPO, no warrants. The SPAC will be targeting Real Estate / PropTech.
SPACs Close Down Again on a Sleepy Friday
SPACs closed down on the day again, with the average pre-deal SPAC trading at $9.80. No new deals today, with just 4 announced on the week.
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It s definitely been a sad May for SPACS with little good news to get investors excited. That being said, we continue to reiterate our view that the slowdown is positive for the longterm health of the broader SPAC market.
Little activity today with no new mergers getting announced, and just one new IPO traded with
Graf Acquisition Corp. closing down 0.7%. SPACs slid lower, once again, and the average pre-deal SPAC is now trading at $9.80 a steep discount to NAV.
A Sad May for SPACs thestreet.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from thestreet.com Daily Mail and Mail on Sunday newspapers.
What s Next for SPACs
With prices, mood, interest, IPO valuation, and deal valuations all coming down, SPAC investors are asking what comes next.
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SPACs joined Tuesday s tech selloff with the average price of a pre-deal SPAC hitting $9.90 that s 10 cents below NAV. It s ironic that in a SPAC market that is much more rational (and tradable) than during peak SPAC earlier this year investors have lost much of their enthusiasm.
Volume across the board has gone down for SPACs with an
average daily volume dropping from 580,000 in February dropping to 104,000 in April. In some ways this is good as the higher volumes were partly a sign of some irrational SPAC exuberance, but at these levels investors will be very worried about efficiently pricing as they get in / out of SPACs.
Apr 28, 2021
Hope for positive deal flow and pops fizzled a bit today as both new SPAC deal announcements received disappointing reactions from the market.
Marquee Raine Acquisition Corp (MRAC) fell -0.3% to $9.89 and
Galileo Acquisition Corp (GLEO) fell -0.5% to $10.02. This continues yesterday s theme of underwhelming deal announcement enthusiasm.
It could still be the case of a back and forth broader stock market, fed speak, and investor attention focused on a deluge of corporate earnings. However, if I m a SPAC waiting to announce a deal based on market conditions then today s results don t instill confidence to move ahead.
Here s a look at how other recently announced SPAC deals ended the day: