SPAC IPOs Mixed, DCRN Deal Slightly Rises, IPOE/SoFi Up Next
IPOE fell ahead of its vote tomorrow, while DCRN rose slightly on its deal with Tritium. Of today s SPAC IPOs: 1 rose, and 2 fell.
Author:
This morning
Decarbonization Plus II (DCRN) announced a deal to take Tritium, an Australian EV charge company, public in a $1.4B SPAC deal. The deal has no PIPE and they currently have $403M in trust. The market was, somewhat, pleased with the deal as DCRN rose modestly +1.4%, though it still trades at a sizable discount to NAV at $9.79. This represents
a potential ~6% yield opportunity if you believe that the deal vote (when an investor could redeem its shares) happens within ~4-6 months.
All Eyes on SPACs and Congress, RIDE Plummets After Hours
No new SPAC mergers, IPOs or S-1s on Monday as equity markets rose, though SPACs generally stayed flat-ish to down. Lordstown Motors is falling big after hours.
Author:
On a day that there were no new SPAC merger announcements, IPOs or new S-1s there was, however, a hearing in the House targeting the future of SPACs. In short, it could result in new legislation that takes away one of SPAC s perceived advantages over the traditional IPO: safe harbor protections for forward looking statements which could limit SPAC targets freedom to paint rosy financial projections to prospective investors.
SPAC Morning: PTK and Legato Strike Deals. Lordstown Continues Dive
Two SPAC deals and an IPO to kick off Tuesday. Lordstown Motors continues to fall.
Author:
PTK Acquisition Corp (PTK) is merging with
Valens Semiconductor in a deal valued at $894M, supported by a $125M PIPE
Legato Merger Corp (LEGO) struck a deal with
Algoma Steel valued at $1.7B EV and supported by a $100M PIPE
In Other SPAC News:
Lordstown Motors (RIDE) continues to trade demonstrably lower following its earnings call yesterday in which the company slashed production expectations and noted a need for a capital raise.
Fifth Wall Acquisition III (FWAC) priced its $250M IPO, no warrants. The SPAC will be targeting Real Estate / PropTech.