At the SPAC of Dawn
SPAC activity is picking back up this week in between the dust settling on the SEC’s new SPAC rule and the Fed breaking its silence on potential rate cuts Wednesday.
As three SPACs look to secure extension votes today, Northview (NASDAQ:NVAC) is among those those hoping to be nearing close. It filed its sixth amended proxy for its combination with medtech firm Profusa on January 16 and released a new investor presentation for the deal this morning.
This provides some key updates from the parties’ initial materials as redemptions at extension votes have reduced Northview’s trust by -95.6%, while the two sides initially anticipated a maximum of 80% redemptions by close. It now has $9.3 million in trust and expects final redemptions to leave it with about $5 million.
It expects to add a further $1 million via a PIPE and to gain $4.4 million more in equity financing from the establishment of a 60/40 joint venture with a Singapore-based entity to license and market its products in the APAC region.
Profusa plans to use about $5 million to $6 million from these final proceeds to fund working capital needs with about $3 million going towards commercializing its glucose monitoring products and $1 million to get its oxygen monitor through its FDA pivotal study.
News and Rumors
- PR: Science 37 (NASDAQ:SNCE), which combined with LifeSci II in October 2021, has agreed to be acquired by private telehealth firm eMed for $5.75 per share. This is a 21.3% premium over the company’s last closing price. But, Science 37 did a 1-for-20 stock split in December and has shrunk to a market cap of about $28.3 million having struck its SPAC deal at $1.05 billion.
- Reuters: Electric car maker Polestar Automotive Holding (NASDAQ:PSNY), which combined with Gores Guggenheim, plans to cut around 450 jobs globally, or about 15% of its workforce, amid “challenging market conditions.”
- TechCrunch: EV de-SPACs Canoo (NASDAQ:GOEV) and Faraday Future (NASDAQ:FFIE) are also rumored to have reduced salaries and furloughed employees. Canoo combined with Hennessy IV in 2020 and Faraday Future with Property Solutions in 2021.
Scheduling Notes
- Sizzle Acquisition Corp. (Nasdaq: SZZL) has postponed its completion vote, scheduled for January 31, to 9 am ET, on Tuesday, February 6. The SPAC stated that it postponed the meeting because EUR and Sizzle are evaluating potential investments from certain strategic parties in connection with the closing of the combination.
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