Kingswood (NASDAQ:KWAC) announced this morning that it has entered into a non-binding letter of intent (LOI) to combine with broker dealer service platform Wentworth ahead of an extension vote.
Wentworth describes itself as a “special purpose vehicle to acquire and hold interests in broker dealers” with a long-hold strategy meant to capture economies of scale to serve financial institutions and advisors. It currently has about 1,500 advisors on its network with $20 billion in assets under management.
Their approach is to allow smaller broker dealer shops options for exiting or recapitalizing their businesses while bringing them into Wentworth’s wider enterprise software network. This, in turn gives smaller firms access to retail capital markets and alternative investment products not normally available to wire-house advisors.
Little else is disclosed about Wentworth either in the parties’ press release or Wentworth’s website, and the two sides could walk away with nothing further being signed. In fact, because Kingswood has an extension vote set for five days from now on May 18, this news is a “teaser” in the classic sense. Additionally, because this deal is not at the “definitive agreement” stage, just a non-binding LOI, we at SPACInsider, do not considered this deal “announced”. As such, it will remain in the “Searching” category.
Nonetheless, the press release notes that the parties aim to sign a definitive agreement before the end of the quarter with a closing expected in the third quarter of 2022.
Kingswood likely hopes that the prospect of a specific deal will keep a few more shareholders around at it’s vote to at least see and hear more. The SPAC does not intend to make an additional contribution to its trust so news such as this is usually dropped to create interest in an environment of high redemptions.
Overall, SPACs that are searching or working on a still-pending business combination have seen an average of 47.4% of shares redeemed at extension votes since the start of the year. For now, Kingswood is trading even with its pro-rata trust value of $10.25.
Terms Tracker for the Week Ending June 27, 2025 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. June continued its late-month rally with another five SPAC IPOs pricing this week, bringing the monthly total to 10 and the 2025 year-to-date count to...
Blueport (NASDAQ:BPACU) has filed for a $69 million SPAC that would bring another first-time sponsor team to market. The new SPAC is offering investors a right to a 1/6 share in each unit and it will have 15 months to complete a business combination. It is underwritten by Alliance Global Partners and will not be...
At the SPAC of Dawn The markets appear to poised to continue a rosy week with futures in the green in anticipation of PCE inflation readings. Space is one of the sectors feeling the most love recently and launch services firm Rocket Lab (NASDAQ:RKLB) is keeping up the momentum, scheduling two launches within 48 hours...
FIGX Acquisition Corp. (NASDAQ:FIGXU) announced the pricing of its $131 million IPO and its units are expected to begin trading on the Nasdaq under the symbol “FIGXU”, Friday, June 27, 2025. The new SPAC aims to seek out a financial services target with a particular focus on wealth and asset managers with the potential to...
Yorkville Acquisition Corp. (NASDAQ:YORKU) announced the pricing of its $150 million IPO and its units are expected to begin trading on the Nasdaq under the symbol “YORKU”, Friday, June 27, 2025. The new SPAC plans to combine with a target company in the telecom, media or technology sectors. Yorkville Acquisition Corp.’s management team is led...