Mining Billionaire’s SPAC Readies Funds for Clean-Power Push
Bloomberg 1/1/2021 Joe Richter and Yvonne Yue Li
(Bloomberg) Ivanhoe Capital Acquisition Corp., the special purpose acquisition company led by billionaire mining investor Robert Friedland, is raising $200 million to invest in industries key to the global energy transition.
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The SPAC plans to target companies in industries related to the “paradigm shift” away from fossil fuels, it said in a U.S. regulatory filing Wednesday. Those may range from miners to end users involved in electrification products and services, according to the filing. Friedland is a founder of Vancouver-based Ivanhoe Mines Ltd., which explores and develops mines in Africa.
Switchback II Corp: The second SPAC from the team behind Switchback Energy Acquisition Corporation (NYSE: SBE) plans to raise $250 million with units that will include one fifth of a warrant.
The company will focus on energy technology with a target company that can help reduce emissions. The first SPAC from the team is bringing ChargePoint, a charging infrastructure company, public. Shares of the new SPAC will trade on the NYSE as SWBK.
Star Peak Corp II: The second SPAC from the team behind Star Peak Energy Transition (NYSE: STPK) is seeking a target company in the sustainability and global emission reductions market. The team has experience leading companies like
SPACs have a limited timeframe, typically around 18-24 months, to put investors money to work by closing deals. The clock is ticking on many of these cannabis SPACs, according to data provided to Business Insider by Viridian Capital Advisors, a cannabis-focused advisory firm.
So far, four out of 17 cannabis-focused SPACs have successfully de-SPACed, or found merger targets. That still leaves over $1.5 billion sitting on the sidelines, waiting to be invested.
If SPACs are unable to close deals, the money gets returned to investors and SPAC sponsors can lose a significant chunk of their investment, said Ari Edelman, a partner at the law firm Reed Smith who focuses on SPACs.