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.
SPACs had a quiet start to the week yesterday with the market digesting a new Middle East war and extra helpings from Canadian Thanksgiving.
The question now is what sort of lasting affect the new outbreak of violence will have. Although US exchanges tumbled out of the gate, they finished the day with a gain – one that was not shared by Israeli de-SPACs broadly. HUB Cyber Security (NASDAQ:HUBC) was one exception as the Mount Rainier target jumped up +180% late in the trading session.
More broadly, major defense stocks like Northrop Grumman (NYSE:NOC) and Lockheed Martin (NYSE:LMT) logged positive momentum alongside oil stocks as is to be expected. But, crude oil prices have ticked up only slightly at $86.28 near the beginning of the day, well below their 52-week high above $95.
Oil prices are no longer the bellwether for the US economy that they once were, and interest rates may instead be the ripple that changes things for SPACs. Fed officials intimated that recent rises in long-term Treasury yields might preclude the need for further hikes.
Yet, throughout the day those yields were trending lower, indicating that a general risk-off sentiment – never a positive for SPACs – might linger.
News and Rumors
- PR: Hudson Acquisition I Corp. (NASDAQ:HUDA) mourns the loss of CFO Hon Man Yun, who passed away October 3. The SPAC announced an LOI with a biotech company in March.
- Motley Fool: Ackman’s SPARC provides an attractive wrinkle for SPAC investors, but also comes at a time when the IPO market appears to be returning.
- PR: Japan-based AERWINS, which combined with Pono in February, will launch a US subsidiary for a new hoverbike design, with Executive Chariman and President Kiran Sidhu putting up $300,000 of the initial working capital.
International SPAC News
- London-listed SPAC Net Zero Infrastructure (LSE:NZI) has signed a non-binding letter of intent to combine with Australian energy company LINE Hydrogen.
DUET Acquisition Corp. (NASDAQ:DUET) has signed a business combination agreement with social media firm Fenix 360 at an enterprise value of $610 million. Singapore-based Fenix 360 is developing an app-based social media platform designed for artists to better engage with fans and monetize interactions. The combined company is expected to trade on the Nasdaq once...
PROOF Acquisition Corp I (NYSE: PACI) announced this morning that its shareholders have approved its business combination with private aviation company Volato at a special meeting held on November 28. Approximately 97% of the votes cast at the meeting were cast in favor of the approval of the deal. The SPAC did not disclose redemption...
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...
Plum Acquisition Corp. I (NASDAQ:PLMI) has entered into a definitive agreement to combine with digital transformation company Veea for a total enterprise value of approximately $281 million. New York City-based Veea aims to simplify secure edge computing by improving application responsiveness, reducing bandwidth and data transport costs, and eliminating central cloud dependency. The parties expect the transaction to be...
L Catterton Asia (NASDAQ:LCAA) announced this morning that it has upsized the committed financing in its combination with EV sports car maker Lotus to $870 million in total. The latest fuel injection comes in the form of $750 million in convertible notes and PIPE commitments under so far undisclosed terms. Counted purely as a PIPE,...