Apr 28, 2021
Hope for positive deal flow and pops fizzled a bit today as both new SPAC deal announcements received disappointing reactions from the market.
Marquee Raine Acquisition Corp (MRAC) fell -0.3% to $9.89 and
Galileo Acquisition Corp (GLEO) fell -0.5% to $10.02. This continues yesterday s theme of underwhelming deal announcement enthusiasm.
It could still be the case of a back and forth broader stock market, fed speak, and investor attention focused on a deluge of corporate earnings. However, if I m a SPAC waiting to announce a deal based on market conditions then today s results don t instill confidence to move ahead.
Here s a look at how other recently announced SPAC deals ended the day:
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NEW YORK, April 26, 2021 /PRNewswire/ Moore Kuehn, PLLC, a law firm focusing in securities litigation located on Wall Street in downtown New York City, is investigating potential claims concerning whether the following proposed mergers are fair to shareholders. Moore Kuehn may seek increased consideration, additional disclosures, or other relief on behalf of the shareholders of these companies:
D8 Holdings Corp. (NYSE: DEH)
D8 Holdings has agreed to merge with Vicarious Surgical. Under the proposed transaction, D8 Holdings shareholders will retain ownership of only 22.3% of the combined company.
Mer Telemanagement Solutions Ltd.(NASDAQ: MTSL)
Mer Telemanagement Solutions has agreed to merge with SharpLink. Under the proposed transaction, Mer Telemanagement shareholders will own only approximately 14% of the combined company
(DBDR), (AACQ) - SPACs Attack Recap: SPAC Activity Slows Down With 3 Deals And No Offerings benzinga.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from benzinga.com Daily Mail and Mail on Sunday newspapers.
SPACs Could Use Some Good News
The SPAC market s correction is starting to feel very painful for those that bought during peak SPAC. The next deals and de-SPACs will be watched closely.
Author:
Apr 21, 2021
Tuesday was a painful day for the whole market, but SPAC investors were hit especially hard as there seemed nowhere to hide. 20 SPACs were down over 3%, RICE, THCB, STPK, RSVA, NGA, FSRV, CCIV, and STIC were all down over over 5.5%, and
there are now 244 pre-deal SPACs trading under $10.
The average pre-deal SPAC is now trading at $9.91 which means that there is a lot of opportunity for the yield + optionality play. However, increasingly investors are hesitant to jump in given the feeling that the upside is more limited as deals aren t popping as they used to and both the post deal announcement and post de-SPAC periods are seeing the air let out of the price balloon quickly.