For subscribers that have a Database Subscription, we’ve added a new table that you can now find under the SPACs tab: At-Risk Capital / Promote.
We’ve detailed each SPAC team’s at-risk capital as well as the sponsor’s promote for all SPACs by category: Searching for a Target, Announced a Transaction, and currently Filed for IPO. Now you can see just how much is at stake…
A snapshot of the current “Filed for IPO” category has been provided below, but in order to view the other two categories, you will need to be a subscriber.
For those unfamiliar with the term, the at-risk capital of the sponsors is contributed at the time of the IPO via a private placement purchase of either warrants or units. It is this capital that pays for the expenses of the offering (i.e., underwriters’ discount, legal and accounting fees, printing costs, filing fees, etc.) and is what brings the trust amount to 100% (or greater if the trust is over-funded). However, it is fully “at-risk” since if the SPAC cannot complete a business combination and liquidates, the sponsor loses the entire investment. It’s some serious “skin in the game.”
For subscribers you can find the new table HERE.
Below is a daily summary of links to the latest SPAC news and rumors gathered across the web. Latest SPAC News: NYSE president says IPO proceeds fall more than 90% while Nasdaq president remains hopeful for 2023, and Giuliani brothers sell pharma stocks as they invest in biotech SPACs NYSE president says IPO proceeds fall...
InterPrivate II Acquisition Corp. (NYSE:IPVA) disclosed this morning that it has restructured its bonus share agreement in connection to its proposed merger with carsharing marketplace Getaround. The parties previously agreed to reserve and set aside the bonus shares, consisting of 9,333,333 shares, to be allocated to the non-redeeming public stockholders, the designees of EarlyBirdCapital and the...
Iris Acquisition Corp. (NASDAQ:IRAA) has entered into a definitive agreement to combine with biotech firm Liminatus at an enterprise value of $334 million. La Palma, California-based Liminatus is a clinical-stage drug developer working on a range of cancer treatments utilizing both preventative vaccines and CAR-T therapies. The combined company is expected to trade on the...
Lakeshore Acquisition Corp. I (NASDAQ:LAAA) announced this morning that it has entered into a non-redemption agreement and amended its purchaser support agreement with initial shareholders in connection to its proposed merger with medical device company ProSomnus. The SPAC entered into non-redemption agreements with certain institutional investors for an aggregate of 200,339 shares of the purchaser. These investors...
The companies and sponsors of six SPAC deals are set to see their lock-ups expire before the end of the year. This is a relatively small monthly total as the wave of deals from 2020 and 2021 are still hitting this milestone. The list nonetheless includes some major names starting with Forafric (NASDAQ:AFRI), which is...