All Eyes on SPACs and Congress, RIDE Plummets After Hours
No new SPAC mergers, IPOs or S-1s on Monday as equity markets rose, though SPACs generally stayed flat-ish to down. Lordstown Motors is falling big after hours.
Author:
On a day that there were no new SPAC merger announcements, IPOs or new S-1s there was, however, a hearing in the House targeting the future of SPACs. In short, it could result in new legislation that takes away one of SPAC s perceived advantages over the traditional IPO: safe harbor protections for forward looking statements which could limit SPAC targets freedom to paint rosy financial projections to prospective investors.
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.
Author:
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.
Author:
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.
SPACs Hit Hard on Merger Monday
Four deals were announced, but performance was underwhelming. Given the overall market s bad day, it s no surprise 75% of pre-deal SPACs declined and now average $9.87.
Author:
Merger Monday returned with four new announced SPAC deals, but ultimately ended in a bit of a thud as all three SPAC stocks that announced this morning fell on the day. More broadly, 75% of Pre-Deal SPACs declined, closing at an
average of $9.87.
-
-
LIV Capital (LIVK) -0.1% to $9.99
The deal selloffs came amid a broader market decline as well - so it s tough to attribute the lack of performance solely on deal conviction - yet most of newly announced deals have not been trading with much enthusiasm. However, as we ve been saying, given there are
SPACs Could Use Some Good News
The SPAC market s correction is starting to feel very painful for those that bought during peak SPAC. The next deals and de-SPACs will be watched closely.
Author:
Apr 21, 2021
Tuesday was a painful day for the whole market, but SPAC investors were hit especially hard as there seemed nowhere to hide. 20 SPACs were down over 3%, RICE, THCB, STPK, RSVA, NGA, FSRV, CCIV, and STIC were all down over over 5.5%, and
there are now 244 pre-deal SPACs trading under $10.
The average pre-deal SPAC is now trading at $9.91 which means that there is a lot of opportunity for the yield + optionality play. However, increasingly investors are hesitant to jump in given the feeling that the upside is more limited as deals aren t popping as they used to and both the post deal announcement and post de-SPAC periods are seeing the air let out of the price balloon quickly.