The Latest SPAC News and Rumors: September 28, 2023
by Nicholas Alan Clayton on 2023-09-28 at 11:29am

Below is a daily summary of links to the latest SPAC news and rumors gathered across the web. 


Law firm Schulte sues SPAC over fees from failed Philippine casino merger

U.S. law firm Schulte Roth & Zabel is suing its former client 26 Capital Acquisition Corp to recover more than $1.9 million in legal fees following the special acquisition company’s failed merger with the Philippines’ largest casino.

The law firm on Tuesday asked Delaware’s Court of Chancery to block 26 Capital, a SPAC, from dissolving before it pays its alleged legal fees. Schulte had advised 26 Capital on its planned $2.5 billion SPAC merger with Okada Manila, an affiliate of Japan’s Universal Entertainment (6425.T). […]

“The law is clear that we are entitled to the fees we earned for the substantial work we did on behalf of 26 Capital and that 26 Capital cannot redeem investors before it makes provision for the payment of creditors,” the firm said in a statement.

Lucid opens Saudi Arabia’s first car production facility

Electric carmaker Lucid Group, which went public with Churchill IV, has inaugurated the first-ever car production facility in Saudi Arabia’s port city of Jeddah.

The facility, which is the automaker’s second Advanced Manufacturing Plant (AMP-2) and first international plant, will produce electric vehicles (EV) for Saudi Arabia and export to other markets.

The AMP-2 facility, located in King Abdullah Economic City (KAEC), will assemble the luxury electric sedan Lucid Air, with an initial capacity to produce 5,000 units a year.

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Financial restatements surge among SPAC startups

The number of companies that have restated their financial results or disclosed accounting problems has increased significantly in recent years, and many of the problems have been occurring at special purpose acquisition companies.

SPACs, also known as blank check companies, are basically shell companies that are used as a vehicle for taking a company public.

Glass Lewis, a proxy advisory services company, reported last month that after several years of companies going public through IPOs or SPAC mergers, it observed a more than 2.5-fold increase in companies with concerning material weaknesses or restatements, partly because many of the companies are only in the early stages of developing strong internal controls.

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Intuitive Machines launches apparel line

Intuitive Machines (NASDAQ:LUNR), which went public in a merger with Inflection Point in February, is selling a line of apparel on Amazon.com ahead of the planned November launch of its IM-1 mission to land on the Moon. The company is selling t-shirts, hoodies, tank tops, sweatshirts, and more.

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Struggling Embark Gets Nod for $2.5 Million Investor Suit Accord

Embark Technology Inc. can proceed with plans for a $2.5 million settlement with shareholders who claim more than $230 million in total losses from their investments, a federal judge in California said, acknowledging the autonomous truck company’s “tenuous” financial position.

The settlement merits preliminary approval, Judge Jacqueline Scott Corley said Tuesday.

The case stems from Embark’s merger with Northern Genesis II, a special purpose acquisition company, as a route to going public.

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