Below is a daily summary of links to the latest SPAC news and rumors gathered across the web.
Latest SPAC News: Churchill Capital IV is set to vote on merger with Lucid Motors, dozens of SPAC deals to enter Russell 3000 index, Jim Chanos warns of SPAC market, and Credit Suisse’s deals dry up
Churchill Capital IV Announces Shareholder Vote Date For Lucid Motors Merger
Churchill Capital IV is set to vote on its merger with Lucid Motors on July 22, and a redemption deadline of July 20.
READDozens of Groups Brought to Market Via SPACs to Enter Key Russell Index
Dozens of companies that entered US markets through deals with SPACs in the past year are set to graduate into the Russell 3000 index on Friday evening, giving a potential boost to the fortunes of electric vehicle (EV) developers and other speculative ventures, according to the Financial Times.
Among those companies are Canoo, Lordstown Motors and Nikola, companies that have dealt with the departures of key personnel and face investigations from the SEC over their disclosures to investors. All three have said they are cooperating with regulators.
Other notable additions will include the sports betting business DraftKings, healthcare company Multiplan and 3D sensors manufacturer Velodyne Lidar, according to Russell’s preliminary list.
READSPAC Boom Is Creating “Castles In The Sky”, Jim Chanos Warns
Jim Chanos, who is the founder of Kynikos Associates and best-known for predicting the collapse of energy group Enron, accused some who have taken companies public via a SPAC of “playing fast and loose with their projections” in an effort to attract retail investors.
Kynikos Associates is betting against a number of blank check companies that are “very bad businesses” and whose valuations “have gotten silly”, Chanos said. He declined to name them.
However, Kynikos is not entirely opposed to the SPAC market as it has taken long positions in blank check vehicles that are trading below $10.
READCredit Suisse’s SPAC Bonanza Dries Up
Credit Suisse’s SPAC deals are being closely monitored by investors and analysts, because revenue from them came to represent a large chunk of overall investment banking revenue last year. That raised concerns that the fees and deal volume might not be sustainable.
Credit Suisse went from making an estimated $466 million in gross SPAC underwriting fees in the first quarter, to $16.1 million between April 1 and June 15, according to the Wall Street Journal.
READ
At the SPAC of Dawn The Fed’s surprisingly aggressive decision to cut rates by 50 basis points yesterday gave a big boost to several SPACs and de-SPACs, many of which had endured a long slump while uncertainty over the coming interest rate climate reigned. None had a better day on paper than digital transformation firm...
Roman DBDR II (NASDAQ:DRDB) has filed for a $200 million SPAC with serial sponsor terms just as the team’s first deal undergoes a transition with other SPAC personalities. This new vehicle has its trust overfunded to 100.5% with $10.05 per share in trust out the gate. It also has 1/2 warrants in its units with...
At the SPAC of Dawn Christmas Day has finally arrived for SPAC watchers pining for a rate cut. The only question is how many basis point presents will they find under the tree when Fed Chair Jerome Powell takes the podium at 2 pm ET today. This is far from the only economic indicator set...
YHN Acquisition I Limited announced the pricing of its $60 million IPO and its units are expected to begin trading on the Nasdaq under the symbol “YHNAU”, Wednesday, September 18, 2024. The new SPAC’s search will not be limited to a particular industry or geographic location, but the sponsors intend to target companies with a...
Chenghe II (NYSE:CHEB) has entered into a definitive agreement to combine with the Polibeli Group at a $3.6 billion equity value. Jakarta-based Polibeli operates an online and app-based wholesale marketplace for small businesses on Indonesia’s Java island. The combined company is expected to trade on the NYSE once the deal is completed. Transaction Overview Chenghe...