Roth CH Acquisition V Co. (ROCL) Lets LOI with Slacker Expire
by Nicholas Alan Clayton on 2023-10-30 at 8:55am

Roth CH V (NASDAQ:ROCL) announced this morning that it has slackened its grip on a possible deal with Slacker, allowing the letter of intent with the podcasting platform expire and breaking off further talks.

The two initially announced their LOI with a proposed enterprise value of $160 million in April and said at the time that the deal would hinge on how much capital the SPAC would be able to raise.

Roth CH V saw about 78% of its trust redeemed at an extension vote days after the LOI announcement, despite securing some shares with non-redemption pacts. That left it with about $25.9 million in its trust.

Slacker is a subsidiary of Los Angeles-based LiveOne (NASDAQ:LVO), which announced it expected to generate $51.7 million in revenue from its audio division last quarter of which Slacker accounted for $26 million. This was a profitable period with the division generating about $5 million in adjusted EBITDA.

This positive news may have also contributed to the parting of ways with Roth CH V. At the time the LOI was announced, LiveOne was struggling to cut costs, manage its debt and get itself to profitability. It had reported $74 million in total revenue in the nine months ending December 31, 2022, which was a decline from $93 million over the same period in 2021.

But, over this time it also managed to cut its net losses to -$4.6 million, down from -$35 million a year before. With a turnaround already in progress, LiveOne may not have still seen the need for a spinoff, or viewed it as favorably considering Slacker accounts for about half of its revenue.

Roth CH V plans to seek out an alternative deal and has until December 3 do complete one under its current deadline.

Recent Posts
by Nicholas Alan Clayton on 2024-02-29 at 3:26pm

Twelve companies and sponsors are set to be released to trade their shares in the final month of the quarter with both sides of the transaction being unlocked together in all but two cases. The first of those exceptions is the sponsor of Summit Healthcare who may begin trading shares on March 17 alongside insider...

by Nicholas Alan Clayton on 2024-02-29 at 1:44pm

News and Rumors Bloomberg: Online brokerage Webull made a point to divest its crypto business ahead of announcing its SPAC deal with SK Growth (NASDAQ:SKGR), its CEO Anthony Denier said, noting that previous attempts to list via a traditional IPO stalled. “The SEC has not been friendly [to crypto], which is widely known,” he added....

by Nicholas Alan Clayton on 2024-02-29 at 7:42am

At the SPAC of Dawn Over 100 potentially market-moving indices are to report data globally today, but the US economy specifically is to get a handful of major ones. At 8:30 am ET, traders are to get their hands on a number of readings around inflation in the country. Importantly, Core PCE numbers are to...

by Nicholas Alan Clayton on 2024-02-28 at 3:31pm

SK Growth (NASDAQ:SKGR) has entered into a definitive agreement to combine with digital investment platform Webull at an enterprise value of $7.3 billion. New York-based Webull provides an equities trading and education platform to about 20 million cumulative users. The combined company is expected to trade on the Nasdaq once the deal is completed in...

by Nicholas Alan Clayton on 2024-02-28 at 1:36pm

News and Rumors PR: Hillsinai Learning, which serves about 500,000 students across 40 schools and 5,000 partner schools, has hired iLearningEngines to build its AI learning automation platform. iLearningEngines has a pending combination with Arrowroot (NASDAQ:ARRW). SpaceNews: Virgin Galactic (NYSE:SPCE) does not expect any delays on its Galactic 07 mission to take passengers into space...

logo

Copyright © 2023 SPACInsider, Inc. All Rights Reserved