Below is a daily summary of links to the latest SPAC news and rumors gathered across the web.
Latest SPAC News: Energy storage stockholders sue SPAC board alleging deceit, Virgin Orbit stock falls on operations pause, and tax surprises surface for SPACs
Energy Storage Stockholders Sue SPAC Board Alleging Deceit
Stockholders for an energy storage company sued their firm’s board of directors alleging they misled investors when bringing their corporation public through a SPAC merger.
Eos Energy Enterprises Inc., formerly known as B. Riley Principal Merger Corp. II (BRII), renamed itself after merging with the energy storage firm Eos Energy Storage LLC on November 16, 2020.READ
Virgin Orbit Stock Falls on Operations Pause
Virgin Orbit (NYSE: VORB) stock is crashing in US premarket price action today after the company announced that it is pausing its operations for a week and has reportedly furloughed most of its employees.
In its SEC filing, Virgin Orbit said, it is pausing operations until March 21 “in order to conserve capital while the Company conducts discussions with potential funding sources and explores strategic opportunities.”
NextGen II completed its business combination with Virgin Orbit in December 2021.READ
Tax Surprises Surface for SPACs, Spurring Need for Nexus Study
At year-end, unexpected US and state income tax impacts may arise for special purpose acquisition companies—even those formed in offshore locations. SPACs are a popular vehicle for accessing the capital markets—nearly 700 were established during 2021 and 2022, raising more than $175 billion.
Many of these companies were formed in locations such as the British Virgin Islands or the Cayman Islands, which are without US tax treaties. While these locations have historically enjoyed a low- or no-tax reputation, the reality has caught some accounting and management teams off guard. As a result, many professionals have been surprised to learn that tax liabilities may now exist in relation to their SPAC.READ
Latest Non-Redemption Agreements: two two (TWOA) Adds Non-Redemption Agreement In connection with the previously announced shareholder meeting of two (NYSE:TWOA) to extend the company’s completion deadline from April 1, 2023 to January 1, 2024, the company and two sponsor, have entered into non-redemption agreements with several unaffiliated third parties. The third parties have agreed not to...
Latest SPAC Liquidations: Khosla Ventures Acquisition Co. III Khosla Ventures Acquisition Co. III (KVSC) to Liquidate Khosla Ventures Acquisition Co. III (NASDAQ:KVSC) did not consummate, or execute a letter of intent before March 26, and therefore shall cease all operations except for the purpose of winding up. It intends to liquidate and redeem all of its...
Below is a daily summary of links to the latest SPAC news and rumors gathered across the web. Latest SPAC News: Faze Clan considers going private, Richard Branson sits out Virgin Orbit’s flameout, and Tempo Automation to acquire Optimum Design Associates Faze Clan considers going private amid financial concerns Esports giant Faze Clan (NASDAQ:FAZE) is...
Aquaron Acquisition Corp. (NASDAQ:AQU) has entered into a definitive agreement to combine with hydrogen energy company Bestpath at an initial equity value of $1.2 billion. Shanghai-based Bestpath has developed technology for hydrogen fuel cell-powered heavy trucks and the refilling stations that would supply them. The combined company is expected to trade on the Nasdaq once...
Manufacturing technology company Berkshire Grey (NASDAQ:BGRY), which closed a combination with Revolution Acceleration in July 2021, announced over the weekend that it is being acquired by SoftBank in a take-private transaction priced at $1.40 per share. The price marks a 24% premium over Berkshire Grey’s closing price on March 24 and a 7.6% boost over...