At the SPAC of Dawn
SPACInsider readers have spoken once again, and this time SPAC watchers are predicting an upset.
Respondents to the latest Let’s Settle This poll are predicting the Kansas City Chiefs to win or at least come within two once Super Bowl LVIII hits the final buzzer this weekend.
Though not strictly a financial question, does this reflect SPACland’s preference for the underdog? For the experienced team with a couple of successful closings to a season already under their belt versus the analytics-driven newcomers?
Yesterday’s poll results revealed skepticism among SPAC professionals in Digital World’s ability to close its long-running campaign to combine with Trump Media and Technology Group. That skepticism may be reflected in the investor-friendly terms in the PIPE the SPAC just attached to the deal (see below).
Deals and Funding
- Digital World (NASDAQ:DWAC) has added a $50 million PIPE made up of convertible notes that convert to units at $8 per unit bearing one common share and a warrant if the the stock trades above 130% of this price. The SPAC may draw upon 20% of this investment ($10 million) immediately with the remainder due at closing. The parties have also issued 3,050,000 warrants, each granting the right to purchase one share at $11.50 per share that are transferable only among the holders’ affiliates.
- DIH Holding (NASDAQ:DHAI), which yesterday completed its combination with Aurora Technology, has added a $1.5 million subscription agreement, under which existing shareholder OrbiMed will purchase 150,000 shares at $10 per share and warrants to purchase 300,000 more with an exercise price of $10.
News and Rumors
- Hollywood Reporter: Lionsgate (NYSE:LGF) reported it ate a -$107.4 million third quarter loss in part due to factors like 2023’s writers and screen actors strikes. Its film and TV studio division, which it is spinning off in a combination with Screaming Eagle, saw a -23% revenue decline to $691.6 million during the period. The group overall turned a $15.2 million profit during the same period in 2022.
- CNBC: 23andMe (NASDAQ:ME) is considering splitting the company in two, dividing its consumer DNA kit division from its biotech research side to better cater to specialized investor bases. The company combined with VG in June 2021.
- Payload: Satellite firm BlackSky (NYSE:BKSY) has inked about $50 million-worth of contracts with the Indonesian Ministry of Defense to expand its orbital surveillance capabilities. BlackSky combined with Osprey Technology in September 2021.
- Bloomberg: The Claure Group has acquired a minority stake in technology firm Hedosophia, which itself co-sponsored six SPACs between 2017 and 2020 and participated in several PIPE transactions.
- Crown Proptech (NYSE:CPTK) adjourned its February 8 extension vote to 3 pm ET February 9. The record date remains January 29.
Twelve companies and sponsors are set to be released to trade their shares in the final month of the quarter with both sides of the transaction being unlocked together in all but two cases. The first of those exceptions is the sponsor of Summit Healthcare who may begin trading shares on March 17 alongside insider...
News and Rumors Bloomberg: Online brokerage Webull made a point to divest its crypto business ahead of announcing its SPAC deal with SK Growth (NASDAQ:SKGR), its CEO Anthony Denier said, noting that previous attempts to list via a traditional IPO stalled. “The SEC has not been friendly [to crypto], which is widely known,” he added....
At the SPAC of Dawn Over 100 potentially market-moving indices are to report data globally today, but the US economy specifically is to get a handful of major ones. At 8:30 am ET, traders are to get their hands on a number of readings around inflation in the country. Importantly, Core PCE numbers are to...
SK Growth (NASDAQ:SKGR) has entered into a definitive agreement to combine with digital investment platform Webull at an enterprise value of $7.3 billion. New York-based Webull provides an equities trading and education platform to about 20 million cumulative users. The combined company is expected to trade on the Nasdaq once the deal is completed in...
News and Rumors PR: Hillsinai Learning, which serves about 500,000 students across 40 schools and 5,000 partner schools, has hired iLearningEngines to build its AI learning automation platform. iLearningEngines has a pending combination with Arrowroot (NASDAQ:ARRW). SpaceNews: Virgin Galactic (NYSE:SPCE) does not expect any delays on its Galactic 07 mission to take passengers into space...