At the SPAC of Dawn

In our first Let’s Settle This poll late last month, we took the pulse of where SPAC watchers thought the overall market for fresh SPAC IPOs was headed on the eve of the Fed’s January 31 comments.

Nearly 76.7% of respondents predicted there would be more than 25 IPOs this year, and 16.7% predicted 50+. But, more specifically, who is going to be leading the charge for this year’s crop as underwriter?

BTIG, Maxim Group and Leering Partners have each tallied one notch on the board for 2024 so far. But, which left lead will lead our league tables once the year comes to a close? Record your prediction HERE.

Deals and Funding

• 99 Acquisition Group (NASDAQ:NNAG) has entered into a definitive agreement to combine with Nava Health at an equity value of $320 million. 99 currently has about $77.1 million in its trust and has until May 22 to complete a transaction under its current deadline.
• In the 8-K concerning its completion vote (below), Flame (NYSE:FLME), noted that it saw $125 million in commitments to its $520 million PIPE drop out, but it added $25 million in additional purchases from Flame Chairman and CEO James C. Flores bringing the final PIPE proceeds to about $437.9 million plus about $62 million in trust capital.
• Keyarch Acquisition Corporation (NASDAQ:KYCH) remains in talks to raise a $60 million PIPE at $10 per share for its combination with EV-charging company Zooz and has revised the hurdles for the company’s earnout. The second tranche of 1,400,000 share will now be dispersed if it generates $10 million in revenue in two consecutive quarters, rather than $20 million in revenue overall and the third tranche of 1,600,000 will require $15 million in two quarters rather than $30 million.

News and Rumors

• PR: Whole Earth Brands, which combined with Act II Global in June 2020, has agreed to be acquired by affiliates of Sababa Holdings at $4.875 per share, which is a 37% premium over its 60-day VWAP as of February 12.
• InnovationMap: Nauticus Robotics (NASDAQ:KITT) has secured $12 million in new funding including $9.5 million in debt while replacing its founder and CEO with interim CEO John Gibson. Nauticus combined with CleanTech in September 2022.
• TechCrunch: Reinvent Technology‘s eVTOL de-SPAC Joby (NYSE:JOBY) has signed an exclusivity agreement to launch air taxis in Dubai by 2026, while there are rumblings of trouble around design flaws at Spartan Energy‘s EV-maker Fisker (NYSE:FSR) and Getaround (NYSE:GETR) is laying off 30% of staff, having completed its deal with InterPrivate II in December 2022.
• PR: Danam Health has agreed to merge with microcap peer Assure Holdings (NASDAQ:IONM) in a stock-for-stock transaction. Danam previously agreed to combine with Artemis Strategic Investment at an enterprise value of $200 million in August 2023, but this deal was terminated in October.

Votes

• Phoenix Biotech (NASDAQ:CERO) shareholders have approved its combination with CERo, but redeemed 671,285 more shares, leading to final redemptions of 99.5% and reducing its trust to just under $1 million in cash.
• As previewed late last week, Flame (NYSE:FLME), got through the completion vote for its combination with Sable Offshore with startlingly low redemptions.  Just 150,823 shares were redeemed at the vote, bringing its total through all votes to 79.3%.

Liquidations

• Social Leverage Acquisition Corp. I (NASDAQ:SLAC) has has canceled its upcoming special meeting February 13 and will liquidate.

Scheduling Notes

• Sizzle (NASDAQ:SZZL) has once again postponed its completion vote to 10 am ET February 21 as it remains engaged with potential investors about funding.
• Papaya Growth Opportunity Corp. I (NASDAQ:PPYA) plans to adjourn its February 13 extension vote and will reconvene it at 11 am ET February 16.
• Armada I (NASDAQ:AACI) has postponed its February 13 extension vote to 11 am ET February 15.