At the SPAC of Dawn
Filings after the bell yesterday provided another three-liquidation day for SPACs bringing this week’s tally to four and extending a streak of five straight weeks with four to five liquidations each week.
With 178 SPACs having announced a liquidation so far in 2023, the year’s total number could well exceed 200 if this pace keeps up. If anything, the end of the year could see a ramp-up in such moves for tax purposes. None of the SPACs opting to liquidate in the past 24 hours had deals in hand, but all were led by serial sponsors.
The Forest Road and FinServ teams might have been more likely to look for the exits given that their first deals with lease-to-own fintech Katapult (NASDAQ:KPLT) and ambitious fitness media venture Beachbody (NYSE:BODY) were both far more geared towards the high-growth, low-rates appetites of 2021.
They have traded accordingly since close with both now valued at below $0.50 per share when adjusted for post-close stock splits. It is perhaps more surprising to see the CF team throw in the towel with one of their last two active SPAC vehicles. That team has completed five deals since 2020, two of which are trading relatively well in the current market conditions.
The Cantor Fitzgerald-backed team’s first de-SPAC Grosvenor (NASDAQ:GCMC) last closed at $8.46, while its most recent closing with conservative social media platform Rumble (NASDAQ:RUM) trades at about $5.
One might have thought that if the CF team had a similar theme in mind, it would have been encouraged by last week’s upsized IPO of Colombier II (NYSE:CLBR.U), which is also expected to seek out an “anti-woke” business target following the team’s first deal with PSQ Holdings (NYSE:PSQH). PSQ seeks to build a ecommerce marketplace aligned with conservative values and it last closed at $5.68 about four months out from close.
Deals and Funding
- DUET Acquisition Corp. (NASDAQ:DUET) announced it entered into a combination agreement with Singaporean social media company Fenix 360 at an enterprise value of $610 million. The two sides previously announced a letter of intent to combine in July.
News and Rumors
- PR: Zapata Computing announced that it has been selected as an awardee for the second phase of the DARPA’s Quantum Benchmarking program. On September 6, Zapata AI entered into a definitive business combination agreement with Andretti Acquisition Corp. (NYSE: WNNR).
- PR: Zapata also announced it is partnering with Sumitomo (NYSE:SMFG) to utilize its generative AI quantum science approaches to simulate plausible market scenarios and help risk managers conduct more sophisticated stress tests.
Liquidations
- Forest Road Acquisition Corp. II (NYSE:FRXB) has determined to liquidate its trust and expects to redeem all of the outstanding shares for an estimated redemption price of approximately $10.45 per share, expected to be paid out by December 13.
- CF Acquisition Corp. IV (NASDAQ:CFIV) has determined to redeem all of its outstanding shares of Class A common stock. The SPAC expects to redeem all of the outstanding public shares for an estimated redemption price of approximately $10.57 per share, expected to be paid out by December 8.
- FinServ Acquisition Corp. II (NASDAQ:FSRX) announced today that the board of directors determined it cannot complete a merger by its deadline and as a result will liquidate. FinServ II expects to redeem all of the outstanding shares for an estimated redemption price of approximately $10.34 per share, expected to be paid out by December 8.
Scheduling Notes
- SportsMap Tech Acquisition Corp. has rescheduled its special meeting to vote on its combination with Infrared Cameras Holdings. The special meeting, previously set for December 5, will now be held on December 8, at 10:00 a.m., ET.
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