Liquidation Alert: Electrum Special Acquisition Corporation
In an 8-K filed this morning, Electrum Special Acquisition Corporation, a $200 million SPAC IPO, announced its intentions to dissolve and liquidate the trust. Electrum Special estimates the per share redemption price for shareholders will be $10.48
As of the close of business on June 5, 2018, Electrum’s public shares will be deemed cancelled and will represent only the right to receive the redemption amount. Redemption of the shares will take place ten business days after June 5th, which is estimated to be June 19th.
As of Electrum’s most recent 10-Q, only $128.4 million remained in the Trust Account following redemptions from prior deadline extensions. The SPAC sponsor will lose the $7.025 million used to purchase the private placement warrants in the IPO that brought the per-share amount held in trust to an initial value of $10.00 per unit. The underwriters will lose their deferred underwriting fee as well, estimated to be approximately $5 million.
Electrum’s shares (ELEC) are currently trading at the trust value of $10.48
Much has been written about the rise and fall of companies from the last SPAC cycle. But, the turning tides of the past month would seem to suggest that perhaps more than a SPAC-specific trend, what the market saw was mostly macro factors all along. In the aggregate, the 199 companies that listed via DeSPAC...
At the SPAC of Dawn October is quickly catching up to last month’s SPAC IPO figures and is now pacing to break them with two more SPACs pricing last night. This comes amid continued signals that the IPOs of all kinds are not keeping up with rising market sentiment and a high demand for private...
Rising Dragon Acquisition Corp. announced the pricing of its $50 million IPO and its units are expected to begin trading on the Nasdaq under the symbol “RDACU”, Friday, October 11, 2024. The new SPAC does not plan to target a particular industry or geography in its combination search but plans to leverage the experience of...
Cohen Circle Acquisition Corp. I announced the pricing of its $200 million IPO and its units are expected to begin trading on the Nasdaq under the symbol “CCIRU”, Friday, October 11, 2024. The Company’s primary focus will be to identify companies in the financial services technology (fintech) sector and fintech adjacent sectors that power transformation...
At the SPAC of Dawn Thirteen years ago, comedian Louis CK built a career resurgence around his observation as a late night show guest that “Everything is amazing right now and no one is happy”. The public markets appear to be in a similar state in some ways, in that overall prices have rebounded with...