SPACInsider Logo
Silver Spike Acquisition Corp. Files $250 Million Cannabis SPAC
by Kristi Marvin on 2019-07-22 at 9:15am

On Friday evening, Silver Spike Acquisition Corp. (SSPKU), filed for a $250 million IPO focused on the Cannabis sector. Scott Gordon, who is the founder and Chief Executive Officer of Silver Spike Capital, a newly formed investment platform dedicated to the cannabis industry, will be leading Silver Spike (the SPAC) as CEO and Chairman.

Silver Spike has an interesting name, as do many SPACs (Hedosophia, anyone?), so a quick Google search led me to the “Nevada Silver Spike“. The “Silver Spike” was on of four ceremonial railroad ties that were driven at the connection linking the Central Pacific and the Union Pacific railroads, creating the first transcontinental railroad.  The Iron Spike of the East, the Gold Spike of the West, a hybrid Iron-Silver-Gold Spike, and a Silver Spike to wed them all together.  Maybe this SPAC’s name means something else entirely, but if this is the origin story, it’s rather poetic.  Maybe the Silver Spike SPAC will link the entire country in a Federally legalized cannabis utopia.

Names aside, this SPAC shows a fairly standard $250 million, 1/2 warrant, 24 months structure, which we’ve seen so frequently this year. Nothing fancy. Credit Suisse is on a roll though.  They were recently left lead on both SC Health ($150 million) and Oaktree ($175 million), so Silver Spike, at $250 million, means Credit Suisse has $575 million in total underwritings already for the third quarter.  The league tables should be quite interesting come September.

Additionally, this team doesn’t have any Directors listed yet (should be dropped in in the next filing), but this team looks to have a solid “Street” background.  Mr. Gordon, the CEO and Chairman of Silver Spike, was previously President of Fintech Advisory Inc., an investment manager for a multi-billion dollar family office fund, as well as a Portfolio Manager at Taconic Capital Advisors, among other things. William Healy, President of Silver Spike, was previously President of Pantera Capital Management, an investment management company. The other two team members, Greg Gentile and Mohammed Grimeh, were Chief Executive Officer of GMG Investment Advisors, LLC and deputy Global Head Fixed Income at Millennium Management, respectively.  So this team isn’t just comprised of “weed operators”, they’ve got the financial chops.

Finally, cannabis is hot (smoking hot?). There is undoubtedly going to be tremendous demand for this SPAC and the 1/2 warrant makes this even more palatable.  Look for this one to price mid-August.

Summary of terms below:

Silver Spike terms2

Recent Posts
by Marlena Haddad on 2022-12-01 at 11:25am

  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...

by Marlena Haddad on 2022-12-01 at 10:02am

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...

by Nicholas Alan Clayton on 2022-12-01 at 9:31am

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...

by Marlena Haddad on 2022-12-01 at 9:22am

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...

by Nicholas Alan Clayton on 2022-11-30 at 6:01pm

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...

Privacy Policy|Terms Of Use
Copyright © 2022 SPACInsider, Inc. All Rights Reserved