At the SPAC of Dawn
This week kicks off with a fair amount of SPAC activity on both ends of deals.
Three SPACs are set to hold extension votes today and this evening could see the pricing of 2024’s second SPAC IPO with Legato Merger Corp. III (NYSE:LEGT). But there is also action to track on the de-SPAC front as three report earnings today in what could be bellwethers for popular SPAC sectors.
Hospitality firm Bowlero (NYSE:BOWL) started the good vibes for de-SPACs before the bell, reporting $103 million in adjusted EBITDA in its quarterly earnings. It is also doubling down on itself, having repurchased about 7,500,000 shares over the past quarter and it plans to buy back about $200 million more stock while also promising shareholders a quarterly cash dividend of $0.055 per share. Bowlero combined with Isos in December 2021.
Symbotic (NASDAQ:SYM) also has the opportunity to continue its encouraging win streak. Already trading above $50, the warehouse automation firm expected to generate $350 million to $370 million in revenue this past quarter with $11 million to $14 million in EBITDA. It closed out the 2023 fiscal year with about $1.2 billion in revenue and an EBITDA loss of -$18 million, having completed its combination with SVF 3 in June 2022.
Also reporting after the closing bell is Soundhound AI (NASDAQ:SOUN), which was among the first targets touting AI technology to complete a SPAC deal, in its case with Archimedes Tech in April 2022. It expected to break into profitability for the first time in the fourth quarter of 2023 with revenues in the $16 million to $20 million range.
Deals and Funding
- Slam Corp. (NASDAQ:SLAM) has signed a definitive agreement to combine with satellite telecom Lynk at a pre-money enterprise value of $800 million.
News and Rumors
- Metals Acquisition Corp (NYSE:MTAL) has begun the book build for its $600 million listing on the ASX. The firm, which combined with Glencore’s CSA Copper Mine in June 2023 will continue life as a dual-listed company on both the ASX and NYSE thereafter.
- L Catterton Asia Acquisition Corp. (NASDAQ:LCAA) secured shareholder approval for its combination with automaker Lotus Technology at a special meeting Friday but saw 20,818,519 shares redeemed, bringing its final redemptions to 96.6%, leaving about $10.7 million remaining in its trust.
- Chenghe Acquisition Co. (NASDAQA:CHEA) shareholders approved its combination with chip manufaturer Taiwan Color Optics Friday. The parties have not yet released redemption figures but noted in the 8-K that they have waived the combination’s lock-up agreement and a closing condition on the percentage of equity to be acquired by Chenghe.
- Oxus Acquisition Corp (NASDAQ:OXUS) shareholders approved its combination with Borealis Foods Friday but 1,886,751 more shares were redeemed, bringing its total redemptions to about 99.7% and leaving less than $1 million remaining in its trust.
- Nubia Brand International Corp. has closed its combination with battery materials supplier Honeycomb and the combined company is expected to begin trading on the Nasdaq under the symbol “STI” on Monday, February 5. The deal was approved at a special meeting December 14 and Nubia made it to close with relatively light 81.4% redemptions, leaving $25 million in its trust.
- Nocture Acquisition Corporation (NASDAQ:MBTC) has postponed its vote to remove a limit on redemptions that would keep it from dropping its trust levels below $5,000,001 to 9 am ET February 27 from February 6. The record date for the vote is to remain December 29.
SDCL EDGE (NYSE:SEDA) has entered into a definitive agreement to combine with copper alloy manufacturer cunova at an enterprise value of $736 million, or 9.4x its 2023E adjusted EBITDA. Osnabrück, Germany-based cunova manufactures copper casts, fittings and conductivity products for the industrial, defense and aerospace sectors. The combined company is expected to trade on the...
Deals and Funding Power & Digital (NASDAQ:XPDB) has secured a $10 million investment from Rice Investment Group into its combination with HVAC technology firm Montana under undisclosed terms. two (NYSE:TWOA) has secured a $15 million PIPE at $10 per share for its combination with LatAm Logistic Properties. News and Rumors PR: Adtech firm Banzai International...
Acri Capital (NASDAQ:ACAC) has entered into a definitive agreement to combine with electronics manufacturer Foxx for $50 million in share compensation. Texas-based Foxx provides communication terminals and IoT services to the telecom sector as well as consumer electronics for retail buyers. The combined company is expected to trade on the Nasdaq once the deal is...
At the SPAC of Dawn SPAC filings have had a relatively slow start out of the gate from the long weekend, but this week should end with some fireworks with six completion votes yet to come and a lunar landing to boot. Three of these votes have been postponed at least once already, so the...
Terms Tracker for the Week Ending February 16, 2024 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. Filings were on the quieter side ahead of the three-day weekend, with the following week also usually heavily booked with spring break vacations. As a...