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.
Car ownership has long been considered a part of the American Dream, but it’s a slice of that goal that is getting more expensive even faster that housing.
The average annual cost of owning a new car jumped +13.5% this year to $12,182 according to a AAA study cited by the NYT. That’s no small change for the 92% of households that have at least one car and SPACs have been heavily involved in the economics of auto in recent years.
Since 2019, SPACs have completed six deals with targets SPACInsider categorizes as “AutoTech” with five more announced and one new SPAC, Zi Toprun, on file to IPO with a focus on this area.
Forty-six more SPACs have either done deals recently or are seeking to do so with the makers of EV batteries or EVs themselves. But with expenses rising, there may also be opportunities in disrupting the consumer cost burdens in this space.
Americans are falling behind on their auto loans at the highest rate in almost 30 years with 6.1% of subprime auto borrowers past due on their loans by at least 60 days last month. Insurance and personal finance are tough nuts to disrupt in a risk-off environment, but the sectors have also brought some of the most successful SPAC deals of the past decade.
Limbach Holdings (NASDAQ:LMB) continues to trade above $28 seven years out from its combination with 1347 Capital. CF I closed with FGL a year later and it was later acquired for $12.50 per share in 2020, followed by Easterly‘s combination with SiriusPoint (NYSE:SPNT) in 2018 and Tiberius‘ deal wtih INTL General Insurance (NASDAQ:IGIC) in 2020 with both de-SPACs trading above $10 today.
News and Rumors
- Variety: FaZe Clan (NASDAQ:FAZE) has agreed to be acquired by peer GameSquare (NASDAQ:GAME) in an all stock transaction 15 months after combining with B. Riley Principal 150.
- Motley Fool: Cathie Wood buys up 5,000,000 shares of Ginkgo Bioworks (NYSE:DNA) across her ETFs as the Soaring Eagle merger partner continues to struggle with profitability.
- Reuters: Next.e.GO (NASDAQ:EGOX) plans three new factories in Europe and the US as next step after its combination with Athena Consumer last week.
CF Acquisition Corp. VIII (NASDAQ:CFFE) announced this afternoon that it has completed its combination with B2B software firm Exela. Although shareholders had previously approved the deal during a special meeting on August 24, no specific timeline for its next steps had been disclosed at that time. Additionally, a proposal was passed at the meeting to change...
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...