At the SPAC of Dawn
Good morning! Watch this space moving forward as a roundup of evening filings as well as news nuggets to nibble on beside your morning coffee.
AST SpaceMobile (NASDAQ:ASTS) is set to provide a business update and preliminary third quarter financials a week from today on November 14, and it may be a call worth tuning into as the space business continues to shake out for better and worse.
Yesterday brought the news that rocket-making de-SPAC Astra (NASDAQ:ASTR) was hurtling back to Earth after failing to maintain some debt covenants. But AST, which combined with New Providence in 2021, could tell a different story with an unlikely boost from Elon Musk.
The billionaire’s own space venture Space X has tipped its finances in recent weeks as it engages with financiers. It is now reportedly expecting to log revenues of about $9 billion in 2023 and $15 billion in 2024. What’s more, the private launch pioneer is seeing revenue from its Starlink space-based internet platform outpace that of its launch business and it expects Starlink to account for the majority of sales in next year.
Geopolitical tensions have doubtless played a role as Starlink has been providing critical services to the Ukrainian military (with some controversial limitations) and the service has been extended to at least some humanitarian organizations engaged in the Israel-Palestine conflict.
That would appear to be a bright endorsement of AST’s business model, which has eschewed the launch risk held by rocket-focused firms like Astra, and instead rides its satellites up to space through partners. Once enough of its satellites are in place, it plans to operate a global space-based 4G mobile network with initial commercial service earmarked to go online in 2024.
News and Rumors
- PR: Abacus Life (NASDAQ:ABL) launched a wealth management division called ABL Wealth in partnership with Dynasty Financial Partners, four months after the asset manager and buyer of life insurance policies completed its combination with East Resources.
- Newswires: Logiq (OTC:LGIQ) has begun a dividend distribution to its shareholders of of 3,762,000 shares in its subsidiary Collective Audience (NASDAQ:CAUD), formerly known as DLQ, which completed a spinoff combination with Abri SPAC I on November 2.
- BioFuels Digest: The Philadelphia Eagles has partnered with bioplastics producer Verde Bioresins and GreenGear Supply Company to introduce the EcoShop bio-based, reusable, recyclable, and landfill-degradable bag. TLGY (NASDAQ:TLGY) announced its business combination with Verde Bioresins in June.
- CNBC: After weeks of increasing signs, office sharing network WeWork (NYSE:WE) formally declared Chapter 11 bankruptcy, two years out from its combination with BowX.
International SPACs
- Renewables Now: UK SPAC Pineapple Power (LON:PNPL) has signed to a non-binding agreement to combine with Canadian hydrogen power company Ilios Hydrogen in a £33 million ($40.6 million) deal.
Non-Redemption Agreements
- Battery Future Acquisition Corp. (NYSE:BFAC) entered into non-redemption agreements with unaffiliated third parties in for an aggregate of 687,500 Class A ordinary shares. In exchange for the foregoing commitment to not redeem such shares, the sponsor has agreed to transfer to the investors up to an aggregate of 137,500 Class B ordinary shares.
Chavant Capital Acquisition Corp. (NASDAQ:CLAY) announced in an 8-K filing this afternoon that it has amended its business combination agreement with Mobix Labs. The amendment involves specific alterations to the exchange ratio, now set at a one-to-one ratio to determine how many shares of Class A Common Stock and Class B Common Stock Mobix Labs’...
ShoulderUp Technology (NYSE:SUAC) announced this afternoon that it has signed a non-binding letter of intent (LOI) to combine with an undisclosed private IT company and has terminated its previous LOI with Airspace Experience Technologies. Terms of the new transaction have not yet been announced, but the parties expect to finalize a definitive agreement by the...
The pace of lock-up expirations is picking up in the final month of the year after a relatively quiet November. Seven de-SPACs and sponsors will be freed to run downstairs and see what the public markets have brought them, but not all are likely to find treats in their wooden clogs. The fastest kid into...
Innovative International (NASDAQ:IOAC) announced in an 8-K that it has removed its earnout shares in connection to its combination with car sharing program Zoomcar. On November 30, IOAC and Zoomcar agreed to a letter agreement regarding the release of 20 million earnout shares, which were originally intended to be placed in an escrow account upon...
Nukkleus (OTC:NUKK) announced “the completion of its strategic merger” with Brilliant (NASDAQ:BRLI) this morning, which has caused some ripples in the market, but it does not appear to represent an actual closing of the business combination. The two sides may have dotted the Is and crossed the Ts on their own internal documents, but Brilliant...