At the SPAC of Dawn
Good morning! Watch this space moving forward as a roundup of evening filings as well as news nuggets to nibble on beside your morning coffee.
Although SPAC deal announcements continue to slumber through the beginning of November, two definitive agreements with a minerals producer and an AI firm, plus a letter-of-intent (LOI) announcement this morning provide some pique as turkey day approaches.
If the LOI were to advance to a definitive agreement, Plum I’s proposed deal could be a part of a rebounding sector as a 2023 software SPAC deal. At one point in the cycle, SPACs were practically the standard path for a midcap software firm to go public.
Twenty-three such firms announced SPAC deals in 2021, but this dropped to 14 in 2022. Already 11 new software deals have been announced in 2023, so it could be a rare sector where SPAC deal count on the year finishes up over 2022 numbers.
It hasn’t been all rosy for the 49 software de-SPACs that completed deals dating back to 2012 as they now trade at a median price of $2.30. But, four either continue to trade or were later acquired above $10 per share. Any team now hunting in this sector is likely on the lookout for a new Vertiv (NYSE:VRT), which last closed at $41.83 three years out from closing with GS I in 2020.
- Tristar Acquisition I Corp. (NYSE:TRIS) has entered into a definitive agreement to combine with Singapore-based Helport AI, which it expects to close in the first quarter of 2023.
- Pyrophyte Acquisition Corp. (NYSE:PHYT) has signed a $708 million combination agreement with Sio Silica, which produces high-purity quartz silica. Proceeds from the transaction are expected to fund the construction of Sio Silica’s extraction and processing facility in Winnipeg, Canada.
- Plum Acquisition Corp. I (NASDAQ:PLMI) announced an LOI to combine with Veea, an edge-to-cloud software firm that aids companies and organizations in digitizing their operations. The parties have not yet released additional details.
- FT: London-listed Financials Acquisition Corp. (LON:FINS) terminated a plan to invest £150 million or more in insurance market Lloyd’s of London after receiving insufficient investment commitments. The SPAC will now liquidate.
- Shares Magazine: ACG Acquisition Co Ltd (LON:ACG) on Friday said Chair Peter Whelan has resigned, effective immediately, while Chief Executive Officer Artem Volynets now also becoming acting chair.
Terms Tracker for the Week Ending November 24, 2023 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. This being the Thanksgiving holiday week, we are thankful for a lot of things, but mostly that 2023 is almost over. It’s been a rough...
At the SPAC of Dawn Though perhaps stuffed to the brim, SPAC activity continues this Thanksgiving Friday with votes by Clean Earth and Zalatoris to extend a deadline and amend trust contributions, respectively. At least seven de-SPACs are also reporting earnings today and will do so going into a futures market that is mostly green...
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At the SPAC of Dawn So far, seven SPACs have announced their liquidations this week and although some others may choose to use the holiday to quietly disband, this tends to be a positive week for equities in general. Going back to 1961, the S&P 500 has ended the Thanksgiving week with gains three-quarters of...