GigCapital3, Inc.

GigCapital3, Inc. (GIK.U), re-filed their S-1 registration statement today, for their $200 million IPO, with no changes to the terms.  No changes, at first blush, seems curious given that the current SPAC IPO market has also been on “lock-down” with nothing getting out.  However, most likely this is just the lawyers churning through the filing process and not necessarily a reflection of what this SPAC will look like when it’s ready to price.  Why change terms now when everything still feels like it’s in flux?  Plus, Gig3 will really need to get on the road (virtually) to get a better sense of where investors’ heads are at before they make any changes to the book.  However, there is the possibility Gig3 still intends to try and price at these terms, but it’s still early in the process.

Shareholder Votes

We have three scheduled shareholder votes today.  Leisure Acquisition Corp. (LACQ), and Allegro Merger Corp. (ALGR), will be holding extension votes, while EdTechX (EDTX) looks to close their combination with Meten Education.

Both Leisure and Allegro intend to combine with businesses in sectors that have been very impacted by the coronavirus – Casinos and Casual Dining, respectively – and neither are offering a contribution to trust for non-redeeming shareholders.  As a result, we should probably expect significant numbers of redemptions.  However, as has been said before, this may be intentional since both SPACs may be looking to replace the lost cash with a PIPE.

EdTechX, on the other hand, will be looking to close its combination today.  Its target, Meten Education, focuses on English Language Training (“ELT”), in China, with both an online and retail presence.  Its online presence, for obvious reasons (Covid-19), has been aided due to an increased interest in online education, so this combined company’s prospects are slightly better than most, post-close.  However, there will most likely still be a lot of redemptions due to the current situation.