Below is a daily summary of links to the latest SPAC news and rumors gathered across the web.
Latest SPAC News: New 1% excise tax on stock buybacks may have consequences for SPACs, investors and sponsors find ways to improve deal integrity, and DWAC falls as shareholders weigh delaying merger
New 1% Excise Tax on Stock Buybacks May Have Far-Reaching Consequences for Capital Markets, SPAC and M&A Transactions
On August 16, 2022, President Biden signed into law the Inflation Reduction Act of 2022, H.R. 5376, a reconciliation bill that revives parts of the tax legislation from the ill-fated Build Back Better Act as part of a larger package also addressing climate change, energy and health care. In particular, the Act establishes a new one-percent excise tax on certain stock buybacks by domestic public companies. The Excise Tax has a broad reach that could unexpectedly affect a range of capital markets, SPAC and M&A transactions beyond plain vanilla stock buybacks.
READSPACs are overcoming expectations
After a series of rollercoaster years for the SPAC market, investors and sponsors are finding ways to improve deal integrity.
SPACs have never faced such a challenging environment, for a number of reasons. The overhang of the SEC’s proposed regulations regarding misleading financial projections have had a significant ripple effect.
However, the worst has possibly already passed for the SPAC market. Sponsors and banks have adopted a more cautious sentiment over the past three months since the SEC announced its proposal, but stakeholders are quickly adjusting.
READTrump-linked SPAC’s stock falls as shareholders weigh delaying merger with ex-president’s media firm
Digital World Acquisition Corporation (NASDAQ:DWAC), the company that plans to take Trump Media and Technology Group public, saw its stock price slide Monday as shareholders consider delaying the merger and the former president contends with a host of legal problems.
A Monday filing from DWAC said that voting for a yearlong delay would open Tuesday. The current deadline to take Trump Media public is Sept. 8. DWAC has warned that it may be forced to liquidate if the deadline is not extended. A shareholder meeting is scheduled for Sept. 6.
Shares of DWAC were down more than 8% to about $25 on Monday, off 16% this month and significantly below their 2022 peak of about $97.
READ
Pyrophyte II (NYSE:PAII.U) has filed for a $175 million SPAC to dig for a natural resources target while the team’s first deal remains pending. The new SPAC is offering investors 1/2 warrants in each unit and it will have 24 months to complete a business combination without asking shareholders for an extension. It is the...
At the SPAC of Dawn The last day of the quarter is to play host to a pair of shareholder votes and a possible pricing of Indigo‘s (NASDAQ:INACU) $100 million IPO. This week is also to play host to fresh jobs numbers just before the long July 4 weekend. Black Hawk (NASDAQ:BKHA) was also one...
Terms Tracker for the Week Ending June 27, 2025 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. June continued its late-month rally with another five SPAC IPOs pricing this week, bringing the monthly total to 10 and the 2025 year-to-date count to...
Blueport (NASDAQ:BPACU) has filed for a $69 million SPAC that would bring another first-time sponsor team to market. The new SPAC is offering investors a right to a 1/6 share in each unit and it will have 15 months to complete a business combination. It is underwritten by Alliance Global Partners and will not be...
At the SPAC of Dawn The markets appear to poised to continue a rosy week with futures in the green in anticipation of PCE inflation readings. Space is one of the sectors feeling the most love recently and launch services firm Rocket Lab (NASDAQ:RKLB) is keeping up the momentum, scheduling two launches within 48 hours...