At the SPAC of Dawn
SPACs have filed little business in the wake of the scores and gyrations of the Chiefs and Usher respectively last night (as accurately predicted by SPACInsider readers), but the week looks to pick up steam with four completion votes on the docket.
The first of these, Flame (NYSE:FLME) has already tipped an encouraging redemption result by its redemption deadline for today’s vote to complete its combination with Sable Offshore. Churchill Capital VII (NASDAQ:CVII) appears to have repeated the trick with just 2% redemptions in its February 8 extension vote.
Churchill VII has not announced any non-redemption agreements or other measures which could have propped up this result. Assuming it was achieved organically, it would mark one of the lowest redemption totals for any kind of vote in the past two years and would be an encouraging omen for the SPAC market overall.
Although the Churchill team has been able to drum up retail traction with past deals, Churchill VII’s pending combination with private equity firm CorpAcq is decidedly more for a straight finance audience. The SPAC itself is virtually all institutionally-owned, which makes this more of a positive signal for the wider market because its holders are in several other SPACs as well.
News and Rumors
- PR: Immersive experience and game company Infinite Reality has acquired peer Ethereal Engine in a share-for-share deal valuing Infinite Reality at $2.5 billion and Ethereal Engine at $75 million. Infinite Reality agreed to combine with Newbury Street (NASDAQ:NBST) in December 2022.
- New York Post: Bridger Aerospace CEO Tim Sheehy was endorsed in his run for a Montana Senate seat by former president and presumptive Republican nominee Donald Trump. Bridger combined with Jack Creek in January 2023 and Trump’s media company itself has a pending combination with Digital World.
- 8-K: NKGen Biotech (NASDAQ:NKGN) has signed a term sheet with Meteora Capital whereby it will exchange 2,000,000 warrants for 2,000,000 shares and pay NKGen up to $0.125 per warrant subject to adjustment based on their 5-day VWAP. NKGen combined with Graf IV in September 2023.
- Quantum FinTech (NYSE:QFTA) has closed its combination with AtlasClear, which has itself completed its acquisition of Wilson Davis. The combined company is expected to further absorb Commercial Bancorp of Wyoming pending certain regulatory approvals. Quantum Fintech shareholders approved the combination in November.
- Arrowroot (NASDAQ:ARRW) has postponed its special meeting to approve its combination with iLearning Engines to 9 am ET February 22 from February 12.
Contributions to trust are typically expected from sponsors looking to retain as much of the trust account as possible that need additional time to complete business combinations. With “time to complete” steadily increasing over the past months, redemptions from the trust account do not look to be slowing down, regardless of what SPAC teams do...
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