At the SPAC of Dawn
A largely positive week is coming to end with a summit that appears to have brought an autumn chill to simmering tensions between the US and China.
Chinese President Xi Jinping and US President Joe Biden each offered olive branches and offhand “dictator” comments aside, both appeared to want to strike a more productive tone heading into 2024. The pandas are coming back, some sanctions will be eased and both sides projected confidence that nothing dramatic would happen over Taiwan in the near future.
Interestingly, Xi appears to have displayed the greater desire of the two for reversing several years of raising tension. Foreign investment in China has been dropping and the combination of a real estate slump and punitive measures by two successive US administrations have contributed.
But, while the photo ops may not persuade major companies to go back on their decisions to pull back from China, SPACs are increasingly playing a role in pulling other foreign capital in. Eight of the 14 new SPACs to file for IPOs so far in the second half of 2023 have been led by Asia-based teams leading Asia-focused search processes with most of them hailing from and searching within China specifically.
Three of these vehicles have since completed their IPOs and are now on the hunt – Global Lights (NASDAQ:GLAC), Quetta (NASDAQ:QETA), and Spark I (NASDAQ:SPKL).
Deals
- Bellevue Life Sciences Acquisition Corp. (NASDAQ:BLAC) has signed a definitive agreement to combine with Korean healthcare holding company OSR. The two parties initially announced a letter of intent in July.
News and Rumors
- UK Tech: Embattled mobility startup Arrival, which terminated a second SPAC combination with Kensington Capital V (NYSE:KCGI) after initially going public with CIIG, has secured a $50m (£40.3m) loan from its existing investors for a “potential sale or strategic alternative transaction.”
Sponsor Economics Sales
- International Media Acquisition Corp. (NASDAQ:IMAQ) entered into a Securities Purchase Agreement with JC Unify Capital and its sponsor to sell its 4,125,000 promote shares (75%) and 597,675 private placement units (25%) for $1.00.
Willow Lane (NASDAQ:WLACU) has filed for a $110 million SPAC to be the latest repeat SPAC team returning to the market with the help of underwriter BTIG. BTIG is, in fact, leading recent underwriter activity with four new SPACs filed since the August 1, while no other firm has been left lead for more than...
At the SPAC of Dawn While SPACs settle into a slight pause through Rosh Hashanah, de-SPACs are also entering another period of holiday-based trading patterns. Traders following the usual “Sell in May and Go Away” pattern this year would have missed out on a major late-summer market rally. But, stocks may now feel the effects...
At the SPAC of Dawn As SPACs switch back into gear with a new cycle, traditional IPO road shows are heating up into the fourth quarter as well. A raft of private equity-backed companies have determined now is the time to strike and the period between the Fed’s September rate slash and the November election...
Earth, Wind & Fire may have been on to something with the end of September and “chasin’ the clouds away“. The SPACs from the past are still lingering which are affecting the averages as newly issued SPACs have come to market in the past year. Each has the same goal of bringing a target company...
Ocean Capital Acquisition Corporation (Nasdaq:OCACU) filed this morning for a $60 million offering to be underwritten by Brookline Capital Markets. This is only the second offering for Brookline where they will be in the position of sole bookrunner, with DT Cloud Acquisition Corporation being their first. However, Brookline has been a bookrunner to the right...