Below is a daily summary of links to the latest SPAC news and rumors gathered across the web.
Latest SPAC News: Energy storage stockholders sue SPAC board alleging deceit, Virgin Orbit stock falls on operations pause, and tax surprises surface for SPACs
Energy Storage Stockholders Sue SPAC Board Alleging Deceit
Stockholders for an energy storage company sued their firm’s board of directors alleging they misled investors when bringing their corporation public through a SPAC merger.
Eos Energy Enterprises Inc., formerly known as B. Riley Principal Merger Corp. II (BRII), renamed itself after merging with the energy storage firm Eos Energy Storage LLC on November 16, 2020.READ
Virgin Orbit Stock Falls on Operations Pause
Virgin Orbit (NYSE: VORB) stock is crashing in US premarket price action today after the company announced that it is pausing its operations for a week and has reportedly furloughed most of its employees.
In its SEC filing, Virgin Orbit said, it is pausing operations until March 21 “in order to conserve capital while the Company conducts discussions with potential funding sources and explores strategic opportunities.”
NextGen II completed its business combination with Virgin Orbit in December 2021.READ
Tax Surprises Surface for SPACs, Spurring Need for Nexus Study
At year-end, unexpected US and state income tax impacts may arise for special purpose acquisition companies—even those formed in offshore locations. SPACs are a popular vehicle for accessing the capital markets—nearly 700 were established during 2021 and 2022, raising more than $175 billion.
Many of these companies were formed in locations such as the British Virgin Islands or the Cayman Islands, which are without US tax treaties. While these locations have historically enjoyed a low- or no-tax reputation, the reality has caught some accounting and management teams off guard. As a result, many professionals have been surprised to learn that tax liabilities may now exist in relation to their SPAC.READ
Trailblazer Merger Corporation I priced its $60 million IPO and its units are expected to begin trading on the Nasdaq under the symbol “TBMCU” Wednesday, March 29, 2023. The SPAC intends to focus its search on companies operating in the technology industry in the following segments: cloud as a service, supply chain technologies, servicing the hybrid workforce...
Alpine (NYSE:REVE) announced this afternoon that it has again adjourned its special meeting to complete its transaction with experiential entertainment company Two Bit Circus. The SPAC originally intended to hold its special meeting on February 24, but has adjourned it four times since then. Alpine now expects to reconvene the meeting on March 30 at 12:00 p.m....
Home Plate Acquisition Corporation (NASDAQ:HPLT) announced that it adjourned its extension vote today and will reconvene the special meeting at 10:30 am ET on March 30. At the upcoming meeting, the SPAC hopes to gain shareholder approval to extend its completion deadline from April 4, 2023, to October 4, 2023. Home Plate announced a $214 million business combination with...
Below is a daily summary of links to the latest SPAC news and rumors gathered across the web. Latest SPAC News: Ares considers raising $400M for new SPAC and electric air mobility division of AIRO and Kernel Group sign MOU with Blade India Ares Considers New $400 Million SPAC Despite Market Lull Ares Management Corp....
DiamondHead Holding Corps. (NASDAQ:DHHC) announced in an 8-K this morning that it has entered into subscription agreements with lock-up investors and PIPE investors in connection to its business combination with Great Southern Homes. Although the deal was approved by shareholders during a meeting last Thursday, the parties are still working to raise funds to meet...