Traders have long looked to SPACs for special plays around their votes as the post-vote period frequently involves some turnover in holdings that can be attractive to shorts, and redemptions can reduce the stocks to low-float situations prone to easy upward pressure.
This week appears to have produced a handful of the latter situations, headlined by Grindr (NASDAQ:GRND). The LGBTQ+ dating app and social network closed its combination with Tiga and began trading today, zooming up more than +333% near mid-day to a high of $46.97.
While there likely is genuine enthusiasm for the network, which has 11 million monthly active users, this extreme price movement is more likely due to the fact that 98.2% of the stock’s public shares were redeemed in its completion vote, leaving a float of just 485,233 shares.
Satixfy (NASDAQ:SATX) closed its combination with Endurance back on October 27 and did not initially divulge its final redemption figures, but it surged above $50 the following day before tumbling to the low teens once again on November 1. It is now back on tear, zooming +415% on the week, although it has not released any news of note or made any SEC filings over the past week.
AGBA Group (NASDAQ:AGBA) completed its deal with its namesake SPAC four days ago, and went through an initial washout period dropping to a close Thursday at $4.50. But, it is now up about +53% in early afternoon trading. Traders have likely noticed that with 99.5% redemptions, it has been left with just 23,642 public shares post-vote. But, because it had rights to 1/10 shares in its IPO units, their conversion has expanded the pool available since close.
One more to watch is Cartesian Growth (NASDAQ:GLBL), which gained shareholder approval for its combination yesterday with wealth management firm Alvarium Tiedemann Capital. It saw 99.8% of shares redeemed, but announced it would postpone completing the deal until January 3, 2023 “in the interest of merger-accounting simplicity”.
It nonetheless zoomed to a brief high of $28.49 on November 16 in between the redemption deadline and shareholder vote before dropping back down to the neighborhood of its pro rata trust value. It experienced another short-lived spike to $14 this morning.
Terms Tracker for the Week Ending December 2nd, 2022 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. As we slide into December, and the holiday season, we recognized two new S-1 registration statements and zero IPOs. The two new S-1s consisted of...
Below is a daily summary of links to the latest SPAC news and rumors gathered across the web. Latest SPAC Liquidations: NightDragon, VectoIQ II, and Fortistar Sustainable Solutions Corp. Night Dragon Acquisition Corp. Will Redeem Its Public Shares and Will Not Consummate an Initial Business Combination NightDragon Acquisition Corp. (NASDAQ: NDAC) anticipates that the last trading day...
Lakeshore Acquisition I Corp. (NASDAQ:LAAA) disclosed this afternoon that its shareholders have approved its business combination with medical device company ProSomnus during a special meeting held earlier today. Approximately 92.4% of the votes cast at the meeting on the business combination proposal, representing approximately 80.5% of Lakeshore’s outstanding shares, voted to approve the deal. The SPAC disclosed...
Below is a daily summary of links to the latest SPAC news and rumors gathered across the web. Latest SPAC News: Embark director Elaine Chao and others sued over SPAC merger, Alvotech switches CEO and takes COO from Teva, and Uber Freight and Aurora expand pilot Embark Director Elaine Chao, Others Sued Over SPAC...
SPACInsider contributors Anthony Sozzi and Sam Beattie this week compiled their three favorite potential SPAC targets among potential targets in the security industry. We look at why they are compelling and why each could be a fit for a blank-check merger. Security is on the market’s mind and is expected to grow at a CAGR...