Morning SPAC News Roundup: February 2, 2024
by Nicholas Alan Clayton on 2024-02-02 at 10:49am

At the SPAC of Dawn

Today marks by far the busiest day in the SPAC market since the SEC dropped the new rules as it is set to host four extension votes, three completion votes and even has a potential new SPAC IPO pricing on the docket.

This flurry of activity could also help improve certain averages for SPACs overall. As noted in today’s analysis of January Corporate Events, SPACs closing in January did so on average 22.2 months after announcing their combinations. That came after monthly averages for closing deals hit 25.6 months and 27.9 in November and December 2023.

The three SPACs heading into completion votes today, however – Oxus (NASDAQ:OXUS), L Catterton Asia (NASDAQ:LCAA) and Chenghe (NASDAQ:CHEA) – announced their deals on average about 10.6 months ago.

This trio’s targets also have an average enterprise value of $1.9 billion, pushed up by L Catterton Asia’s $5.4 billion price tag for performance EV-maker Lotus Technology. This comes after the 98 SPAC deals that closed in 2023 had a median enterprise value of just $461 million and only one combination announced that year had an enterprise value above $900 million.

By mid-next week, the numbers are likely to tell the story that not only is the SPAC market alive and well in the wake of the rule change, but, in fact, business is picking up.


Deals and Funding

  • Power & Digital Infrastructure II (NASDAQ:XPDB) has added a $5 million PIPE to its combination with sustainable air conditioning company Montana Technologies, which has also committed to invest $10 million into a new joint venture to market its technology in GEO Vernova systems on three continents.

News and Rumors

  • PR: Public accounting firm Marcum has expanded its IPO and SPAC practice in Asia with the opening of a new 50-person MarcumAsia office in Hong Kong.

Liquidations and Reversals


Scheduling Notes


 

Recent Posts
by Anthony Sozzi on 2024-03-02 at 11:58am

Contributions to trust are typically expected from sponsors looking to retain as much of the trust account as possible that need additional time to complete business combinations. With “time to complete” steadily increasing over the past months, redemptions from the trust account do not look to be slowing down, regardless of what SPAC teams do...

by Kristi Marvin on 2024-03-02 at 11:45am

Terms Tracker for the Week Ending March 1, 2024 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. The last week of February turned out to be a sluggish one with not a lot happening on the new issuance front. Once again, there...

by Nicholas Alan Clayton on 2024-03-01 at 1:28pm

News and Rumors Bloomberg: Digital World (NASDAQ:DWAC) and its target Trump Media and Technology Group (TMTG) were hit by a new wave of legal headaches this week as both the founders of its Truth Social platform and Digital World CEO Patrick Orlando filed lawsuits over the deal’s closing share allocations. One of the suits has...

by Nicholas Alan Clayton on 2024-03-01 at 10:52am

Altitude (NASDAQ:ALTU) has entered into a definitive agreement to combine with Vesicor Therapeutics for $70 million in equity consideration. San Gabriel, California-based Vesicor is developing treatments utilizing extracellular vesicles as both a therapy themselves and as a delivery system for other medicines. Transaction Overview Altitude has about $10.3 million in its current trust after seeing...

by Nicholas Alan Clayton on 2024-03-01 at 7:45am

At the SPAC of Dawn February finished as a productive month for SPACs with 11 closing combinations, up from just four in January. And, while regular way IPOs are taking back the driver’s seat in terms of new issuance in 2024, it isn’t by a wide margin. There were actually more SPAC closings than the...

logo

Copyright © 2023 SPACInsider, Inc. All Rights Reserved