Morning Roundup: October 5, 2023
by Nicholas Alan Clayton on 2023-10-05 at 7:38am

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.

Much of the conversation around SPACs tends to come in isolation, but Rivian’s (NASDAQ:RIVN) after-hours announcements yesterday show that launching a public EV brand is tough no matter how the company made it to the market.

The company already announced a meager third quarter year-on-year production increase of 4% earlier in the week, but it followed this with plans to issue $1.5 billion in convertible notes due in 2030. It is down about -9.5% before market open, reversing much of its 2023 gains.

Like other new EV players, it continues to chase first-mover Tesla (NASDAQ:TSLA) but has been snared by high capex and supply chain challenges. Its relative stability has come largely due to its steady contract to supply delivery trucks to its largest shareholder, Amazon (NASDAQ:AMZN).

Symbotic (NASDAQ:SYM), which combined with SVF 3 last June, has similarly leveraged its contracts with Walmart (NYSE:WMT) to become one of the highest performing de-SPACs since 2020, last closing at $31.84.

Sponsor Economics Sales

  • Atlantic Coastal Acquisition Corp. (Nasdaq: ACAH) filed an 8-K yesterday revealing they had entered into a Sponsor Membership Interest Purchase Agreement to sell 55% of their sponsor membership interest to Porche Capital LTD. The buyer will receive approximately 4,465,867 shares of Class A common stock, one share of Class B common stock and 3,336,667 private placement warrants to acquire 1,112,222 shares of Class A common stock for a total purchase price of $1.00.

In connection with the Sponsor Handover, the Sponsor transferred the remaining 45% of the membership interests, entitled to approximately 3,653,892 shares of Class A common stock and 2,730,000 private placement warrants to acquire 910,000 shares of Class A common stock, to a separate limited liability company, of which Shahraab Ahmad is the managing member.

News and Rumors

  • Puck: Ackman’s media blitz is in full swing as a number of publications have put out explainers on the deal maker’s new “SPARC” product.
  • TechCrunch: Bird (OTC:BRDS) lays off staff after absorbing its peer Spin as its rocky ride post-de-SPAC with Switchback II continues.
  • Bloomberg Law: The Better Therapeutic lawsuit is back on now that Mountain Crest sponsors have responded, judge rescinds its earlier default judgment.
  • BNN Bloomberg: SomaLogic (NASDAQ:SLGC) will merge with Standard BioTools (NASDAQ:LAB) in all-stock merger that will give SomaLogic shareholders 1.11 LAB shares per SLGC share they hold and a 57% stake in the company. SomaLogic went public in 2021 via CM Life Sciences II.
  • Denver Post: Spruce Power (NYSE:SPRU), formerly known as XL Fleet, agreed to pay a reduced $11 million settlement with the SEC in exchange for its cooperation with probe alleging it overstated projections during its de-SPAC process with Pivotal II.

International SPAC News

  • FinNews: Switzerland’s only listed SPAC VT5 Acquisition Company (SIX:VT5) has found a target and is in exclusive negotiations with the R&S Group.
  • Bloomberg: Middle East’s first SPAC ADC Acquisition Corp. raises $200 million PIPE for its combination with United Printing & Publishing.
  • PR: Toronto-listed Agrinam Acquisition Corporation (TSX:AGRI.U) has signed a $147 million business combination with agtech firm Freight Farms.

Recent Posts
by Kristi Marvin on 2023-12-02 at 11:45am

Terms Tracker for the Week Ending December 1, 2023 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. For the most part, this was a quiet week for filings being that it followed the Thanksgiving holiday. Ideally, bankers, lawyers and teams got a...

by Marlena Haddad on 2023-12-01 at 5:39pm

Aimei Health Technology Co., Ltd (NASDAQ: AFJKU) announced the pricing of its $60 million IPO this evening. Its units are expected to begin trading on the Nasdaq under the symbol “AFJKU” on Monday, December 4, 2023. After the securities comprising the units begin separate trading, the Class A ordinary shares and rights are expected to...

by Marlena Haddad on 2023-12-01 at 4:43pm

PROOF Acquisition Corp I (NYSE: PACI) announced this afternoon that it has closed its business combination with private aviation company Volato after shareholders approved the deal at a meeting on November 28. In total, including previous shareholder votes, shareholders opted to redeem an aggregate of 99.93% of PACI’s trust, leaving it with less than $215,000...

by Marlena Haddad on 2023-12-01 at 9:34am

Adit EdTech (NYSE: ADEX) announced this morning that its shareholders have approved its business combination with bitcoin self-mining company Griid Infrastructure at a special meeting held yesterday, November 30. A total of 8,520,710 shares of common stock, representing approximately 95.7% of the outstanding shares entitled to vote, were present at the meeting, constituting a quorum...

by Nicholas Alan Clayton on 2023-12-01 at 7:49am

At the SPAC of Dawn There had been hopes that this week would take one world conflict off the board, but combat has resumed in the Middle East as other eyes are likely to be fixed on new Fed comments today. The fighting in Gaza continues to not appear to have appreciable affects on the...


Copyright © 2023 SPACInsider, Inc. All Rights Reserved