Two Big SPAC Deals (SRNG, AURC) After Monday s Mess
Monday was a painful day for SPAC investors with 75% of pre-deal SPACs dropping farther and 3 deals actually dropping on the news. Will today s deals from SRNG and AURC turn the tide?
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At the close yesterday the average pre-deal SPAC was at $9.87 even further from NAV than investors have seen in a long time. Even worse, the three morning deals all closed lower:
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LIV Capital (LIVK) -0.1% to $9.99
Today s two deal announcements are mega deals and could potentially turn the tide, but given the market s overall state and SPACs still being clogged, it will take a lot.
HANFORD â After overcoming its financial shakeups, electric car manufacturer Faraday Future has been restructured and is ready to start rolling out vehicles within a year.
The company gave Hanford Mayor Francisco Ramirez a tour of the manufacturing facility on Monday and he says the turnaround has been astounding and has the potential to not only bring new jobs to the city, but to change the economy for years to come.
âNot only is this $1 billion of funding, but they said this is the very beginning of the technology rush here in Hanford â itâs going to be huge,â Ramirez said. âThey want to add more, they want to do a test track for Faraday Future â they want this to be the hub.â
SPAC Deals and IPOE/SoFi Momentum
3 deals on Friday to close out the week, and IPOE surged into the weekend.
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10% to close on the news. It may be the positive endorsement (or short squeeze?) that could spark the market needed for SPAC M&A confidence. Especially since the market didn t exactly eat up the IPOF/Equinox rumor earlier this week. IPOE closed at $16.50.
IPOE, backed by Chamath Palihapitiya, is one of the more high profile SPAC mergers out there. The other media favorite, CCIV, climbed 2% today. Look out for a Lucid Motors appearance on SNL this weekend when Elon Musk is a guest host.
Will Honest s IPO Take More Shine Off SPACs?
Muted SPAC M&A pops could spark a shift back to the traditional, longer IPO process for private companies. Hoffman and Pincus file for 4th SPAC.
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Are Traditional IPOs Back in Favor?
The SPAC boom was partly fueled by the myriad of advantages that private companies were given by choosing SPAC as their path to public markets, to name a few:
- a faster/far less arduous offering process
- ability to sell investors on
future projections
Following
The Honest Company (HNST) highly successful day-1 IPO, it s fair to ask if more companies will follow their patient lead in the traditional IPO process. They were famously an early unicorn and then, infamously, lost their unicorn status in a down financing round. Yet the company ultimately recovered, and now are close to profitability and have a $2B valuation after closing yesterday up +44%.
Faraday Future Selects Velodyne as Exclusive Lidar Supplier for Flagship FF 91 Luxury Electric Vehicle
Saturday, May 1, 2021 6:00PM IST (12:30PM GMT)
Utilizing Velodyne Sensors, Faraday Future Will Bring Advanced Safety and ADAS to FF 91
San Jose, Calif., United States:
Velodyne Lidar, Inc. (Nasdaq: VLDR, VLDRW) today announced it has been selected by Faraday Future (FF) as the exclusive supplier of lidar for Faraday’s flagship FF 91 all-electric vehicle (EV). Velodyne’s solid state Velarray H800 lidar sensors will power the FF 91’s autonomous driving system that aims to deliver a comprehensive suite of highway, urban and parking autonomy features.
Velodyne Lidar announced it has been selected by Faraday Future (FF) as the exclusive supplier of lidar for Faraday’s flagship FF 91 all-electric vehicle (EV). (Photo: Faraday Future)