At the SPAC of Dawn
Crypto has been a popular, but a somewhat niche sector for SPACs in recent years that appeared to have fallen out of favor as scandals rocked major exchanges and prices for major cryptocurrencies and tokens plummeted.
Only one crypto SPAC deal has been announced since August 2022 but four remain pending in the announced column. Despite this, the macro situation around crypto appears to have been improving throughout the past year. Bitcoin is now being traded just under its 52-week high and a conclusion to the FTX trial left hopes that some of the bad juju from the slump was in the rear view.
Those hopes took a new hit yesterday as the SEC launched a fresh suit against the Kraken exchange. The probe accuses the company of some of the same malfeasance that brought down FTX including mingling company and customer cash, but, more broadly, it alleges the company is operating an unregistered securities exchange.
This latter point is one that calls into question a number of crypto businesses models, which will be something to track for the two SPACs still searching for crypto targets – Blockchain Coinvestors (NASDAQ:BCSA) and Goldenstone (NASDAQ:GDST).
- Global Partner II (NASDAQ:GPAC) has signed a definitive agreement to combine with US lithium processor Stardust Power at an enterprise value of $490 million.
- Genesis Growth Tech (OTC Pink:GGAAF) has entered into a definitive agreement to combine with digital therapeutics firm Mind Maze for $21 million in compensation.
News and Rumors
- PR: Sagaliam Acquisition Corp. (NASDAQ: SAGA), which is combining with Enzolytics, announced that it received a temporary restraining order on its extension proxy shareholder meeting.
- Hydrogen Central: Nikola Corp. (NASDAQ:NKLA),which was the combination company of VectoIQ Acquisition Corp., CFO Stasy Pasterick is leaving the role after just six months, the third senior leader to depart the beleaguered electric truck maker since August.
- Denali Acquisition Corp. (NASDAQ:DECA) amended its subscription agreement to reduce the aggregate number of shares of preferred stock to be purchased by FutureTech Capital LLC from 1,800,000 shares to 1,300,000 shares, at a purchase price of $10.00. The investor will receive two warrants for each share of the preferred stock purchased, with each warrant being exercisable for a period of five years that commences upon the six-month anniversary of the closing, for one share of common stock at an exercise price of $8.00 per share. The parties also waived the minimum cash closing condition of $30 million.
Terminations and Liquidations
- Seaport Global II (NASDAQ:SGII) has terminated its combination with American Battery Materials and will liquidate at approximately $10.78 per share.
- LIV Capital Acquisition Corp. II (NASDAQ:LIVB) has terminated its combination with Mexican fintech firm Covalto and will liquidate at beginning December 7 at a redemption rate of $10.98 per share.
Terms Tracker for the Week Ending December 8, 2023 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. Well that escalated quickly. While last week was quiet, this week was far busier. SPACs saw one IPO start trading after pricing on Friday of...
Mobiv Acquisition Corp. (NASDAQ:MOBV) announced this afternoon that it has closed its combination with EV motorcycle-maker SRIVARU. Shareholders originally approved the deal at a special meeting held back on September 28, but at that time, the parties expected the transaction to take just a week to close. Redemptions whittled Mobiv’s IPO share pool of 10,005,000 down...
Achari Ventures I (NASDAQ:AVHI) has entered into a definitive agreement to combine with medtech firm Vaso Corporation at an equity value of $176 million, or 19.5x its 2022 adjusted EBITDA. Wuxi, China-based Vaso provides IT services and sales support to medical device manufacturers. The combined company is expected to trade on the Nasdaq under the...
EF Hutton Acquisition Corp. I (NASDAQ:EFHT) announced this morning that its shareholders have approved its business combination with E.C.D. Auto Design. At the meeting, there were 5,089,203 shares of common stock, representing approximately 76.82% of the issued and outstanding shares of common stock, present. In connection with the meeting, the company’s stockholders holding 3,470,945 shares,...
Legato Merger Corp. III (NYSE:LEGT) filed for a $175 million IPO yesterday afternoon, becoming the fourth SPAC to file this week. While the other three SPACs that filed their S-1s earlier this week intend to pursue targets in the financial services and biotech industries, Legato III, similar to the earlier Legato SPACs, will focus on...