At the SPAC of Dawn
The latter half of 2023 has largely told a story of retrenchment in the SPAC market as much of the excess in the domain has found itself terminating and liquidating. But, the increase in outgoing has not completely canceled out the boom in incoming as three new SPACs filed to IPO yesterday alone.
Other bellwethers of a rebound have so far stayed away like deeper involvement of bulge bracket underwriters and veteran SPAC sponsors jumping back in with both feet. But, the impressive amount of fresh grass on the meadow does break from the gloomy fog of much of the year.
It also doesn’t hurt that 2023 is going out with two transactions that price de-SPACs above their combination valuation in successive weeks – well above in Cerevel’s case, without even a need to adjust for stock split changes.
News and Rumors
- PR: AbbVie (NYSE:ABBV) has agreed to acquire neuroscience drug developer Cerevel Therapeutics (NASDAQ:CERE) for $45 per share at a $8.7 billion in one of the most lucrative de-SPAC exits of all time. The deal may well vault the Arya team up the serial sponsor leader board where it already sits as the sixth-most successful team having completed three biotech deals between 2020 and 2021.
- Axios: X-energy, which canceled a combination with Ares virtually at the altar in October, has now raised $80 million in a private Series C for yet undisclosed terms.
Liquidations
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InterPrivate III Financial Partners (NYSE:IPVF) has determined to redeem all of its outstanding shares of Class A common stock, effective as of December 21. As of the close of business on the last day of trading, December 8, the shares will be deemed cancelled and will represent only the rights to receive the per-share redemption price of approximately $10.75.
At the SPAC of Dawn The market will get more Fed minutes to chew on today ahead of new CPI and PPI readings to finish the week. Meanwhile, the raft of SPACs from the previous cycle that are getting long in the tooth are still reading the tea leaves in terms of how many flexible...
At the SPAC of Dawn The SPAC world is set to get its newest member later today when Launch Two (NASDAQ:LPBBU) begins trading having priced its $200 million IPO overnight. The technology SPAC is the first to IPO this quarter and comes after the newfound SPAC issuance momentum appeared to throttle down slightly in September,...
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Oaktree III Life Sciences (NASDAQ:OACCU) has filed for a $175 million SPAC with some of the most aggressively team-friendly terms seen so far in the second half of 2024. The new SPAC’s units contain 1/5 warrants and the trust is not set to be overfunded. Only the warrantless Cantor Equity Partners (NASDAQ:CEP) has IPO’d so...
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