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.
As discussed both at the time and through a review of flight de-SPACs overall, there are reasons to view the airline business as an attractive landing spot for SPAC capital. But, earnings season may provide a better gauge of which way the winds are blowing in the industry.
Budget carrier Spirit Airlines (NYSE:SAVE) reports its earnings today as does Boeing (NYSE:BA) further up the supply chain. Southwest (NYSE:LUV), meanwhile, reports tomorrow.
Both Spirit and Southwest have had some bumpy rides of late and are down year-to-date, but their top line figures should provide some clarity on the state of air travel as airlines have spent the post-pandemic recovery period sorting through inventory and optimizing destinations.
As a more diversified company, Boeing could show signs in multiple directions. It also generates a significant portion of its revenue from the defense and aerospace sectors.
But, despite growing global tensions and a war in Europe, Boeing’s sales of commercial aircraft still well outpaced its deliveries to the defense sector in the first half of the year, representing $15.5 billion of the group’s $37.6 billion in first half revenue as compared to $12.7 billion coming from defense.
Deals and Amendments
- Nabors Energy Transition (NASDAQ:NETC) and Vast amended its business combination to issue 350,000 Vast Ordinary Shares to Nabors Lux pursuant to a backstop agreement at close in exchange for it purchasing up to $15 million shares at $10.20 per share. The two sides will reduce the SPAC sponsor’s earnout by 500,000 shares, leaving 1,500,000 remaining. The minimum cash condition of $50.0 million was also waived.
- ABRI SPAC I (NASDAQ:ASPA) shareholders approved its combination with digital ad firm DLQ at a shareholder meeting October 23, but saw 639,963 shares redeemed, leaving it with 42,185 shares remaining.
News and Rumors
- Indian Express: AirAsia’s parent company has reportedly come to a deal with Aetherium Acquisition Corp. (NASDAQ:GMFI) to list several subsidiaries in a merger and is working to raise $1 billion in debt and equity to support the move.
- Precision Medicine Online: The FDA has granted NKGen Biotech (NASDAQ:NKGN) permission to start U.S. trials of its drug’s effectiveness with Alzheimer’s cell therapy, three weeks after it completed its merger with Graf Acquisition Corp. IV.
- Battery Future Acquisition Corp. (NYSE:BFAC) entered into non-redemption agreements with investors ensuring 750,000 shares will not be redeemed at its upcoming extension vote. The SPAC’s sponsor has agreed to transfer 150,000 promote shares to these investors in connection with the move and it estimates its pro rata trust value at the time of the special meeting to be $10.85.
Terms Tracker for the Week Ending December 8, 2023 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. Well that escalated quickly. While last week was quiet, this week was far busier. SPACs saw one IPO start trading after pricing on Friday of...
Mobiv Acquisition Corp. (NASDAQ:MOBV) announced this afternoon that it has closed its combination with EV motorcycle-maker SRIVARU. Shareholders originally approved the deal at a special meeting held back on September 28, but at that time, the parties expected the transaction to take just a week to close. Redemptions whittled Mobiv’s IPO share pool of 10,005,000 down...
Achari Ventures I (NASDAQ:AVHI) has entered into a definitive agreement to combine with medtech firm Vaso Corporation at an equity value of $176 million, or 19.5x its 2022 adjusted EBITDA. Wuxi, China-based Vaso provides IT services and sales support to medical device manufacturers. The combined company is expected to trade on the Nasdaq under the...
EF Hutton Acquisition Corp. I (NASDAQ:EFHT) announced this morning that its shareholders have approved its business combination with E.C.D. Auto Design. At the meeting, there were 5,089,203 shares of common stock, representing approximately 76.82% of the issued and outstanding shares of common stock, present. In connection with the meeting, the company’s stockholders holding 3,470,945 shares,...
Legato Merger Corp. III (NYSE:LEGT) filed for a $175 million IPO yesterday afternoon, becoming the fourth SPAC to file this week. While the other three SPACs that filed their S-1s earlier this week intend to pursue targets in the financial services and biotech industries, Legato III, similar to the earlier Legato SPACs, will focus on...