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.
Much of the conversation around SPACs tends to come in isolation, but Rivian’s (NASDAQ:RIVN) after-hours announcements yesterday show that launching a public EV brand is tough no matter how the company made it to the market.
The company already announced a meager third quarter year-on-year production increase of 4% earlier in the week, but it followed this with plans to issue $1.5 billion in convertible notes due in 2030. It is down about -9.5% before market open, reversing much of its 2023 gains.
Like other new EV players, it continues to chase first-mover Tesla (NASDAQ:TSLA) but has been snared by high capex and supply chain challenges. Its relative stability has come largely due to its steady contract to supply delivery trucks to its largest shareholder, Amazon (NASDAQ:AMZN).
Symbotic (NASDAQ:SYM), which combined with SVF 3 last June, has similarly leveraged its contracts with Walmart (NYSE:WMT) to become one of the highest performing de-SPACs since 2020, last closing at $31.84.
Sponsor Economics Sales
- Atlantic Coastal Acquisition Corp. (Nasdaq: ACAH) filed an 8-K yesterday revealing they had entered into a Sponsor Membership Interest Purchase Agreement to sell 55% of their sponsor membership interest to Porche Capital LTD. The buyer will receive approximately 4,465,867 shares of Class A common stock, one share of Class B common stock and 3,336,667 private placement warrants to acquire 1,112,222 shares of Class A common stock for a total purchase price of $1.00.
In connection with the Sponsor Handover, the Sponsor transferred the remaining 45% of the membership interests, entitled to approximately 3,653,892 shares of Class A common stock and 2,730,000 private placement warrants to acquire 910,000 shares of Class A common stock, to a separate limited liability company, of which Shahraab Ahmad is the managing member.
News and Rumors
- Puck: Ackman’s media blitz is in full swing as a number of publications have put out explainers on the deal maker’s new “SPARC” product.
- TechCrunch: Bird (OTC:BRDS) lays off staff after absorbing its peer Spin as its rocky ride post-de-SPAC with Switchback II continues.
- Bloomberg Law: The Better Therapeutic lawsuit is back on now that Mountain Crest sponsors have responded, judge rescinds its earlier default judgment.
- BNN Bloomberg: SomaLogic (NASDAQ:SLGC) will merge with Standard BioTools (NASDAQ:LAB) in all-stock merger that will give SomaLogic shareholders 1.11 LAB shares per SLGC share they hold and a 57% stake in the company. SomaLogic went public in 2021 via CM Life Sciences II.
- Denver Post: Spruce Power (NYSE:SPRU), formerly known as XL Fleet, agreed to pay a reduced $11 million settlement with the SEC in exchange for its cooperation with probe alleging it overstated projections during its de-SPAC process with Pivotal II.
International SPAC News
- FinNews: Switzerland’s only listed SPAC VT5 Acquisition Company (SIX:VT5) has found a target and is in exclusive negotiations with the R&S Group.
- Bloomberg: Middle East’s first SPAC ADC Acquisition Corp. raises $200 million PIPE for its combination with United Printing & Publishing.
- PR: Toronto-listed Agrinam Acquisition Corporation (TSX:AGRI.U) has signed a $147 million business combination with agtech firm Freight Farms.
Plum Acquisition Corp. I (NASDAQ:PLMI) has entered into a definitive agreement to combine with digital transformation company Veea for a total enterprise value of approximately $281 million. New York City-based Veea aims to simplify secure edge computing by improving application responsiveness, reducing bandwidth and data transport costs, and eliminating central cloud dependency. The parties expect the transaction to be...
L Catterton Asia (NASDAQ:LCAA) announced this morning that it has upsized the committed financing in its combination with EV sports car maker Lotus to $870 million in total. The latest fuel injection comes in the form of $750 million in convertible notes and PIPE commitments under so far undisclosed terms. Counted purely as a PIPE,...
At the SPAC of Dawn SPAC closing timelines can always be somewhat unpredictable, but PROOF I (NYSE:PACI) has the opportunity today to vie for a recent speed record today. It announced a combination with private aviation firm Volato 118 days ago on August 2 and its shareholders are set to vote to approve the combination...
Dune Acquisition Corporation (NASDAQ:DUNE) announced in an 8-K today that it has once again modified its agreement with sustainable energy firm Global Hydrogen. This amendment marks a reduction in Global Hydrogen’s equity value from $48 million to $43 million, alongside an increase in the available shares of common stock that is for the Global Gas Corporation...
At the SPAC of Dawn After mixed signals for the consumer sector earlier this month, initial Black Friday sales numbers have shown that Americans were not too stuffed for a shopping spree this year. Shoppers bagged between $9.8 billion and $10 billion in goods online, depending on one’s preferred source, either of which would be...