Below is a daily summary of links to the latest SPAC news and rumors gathered across the web.
Palihapitiya files for four more SPACs while Canyon’s Josh Friedman sees mistakes being made
Billionaire Investor Chamath Palihapitiya Files For Four New Biotech SPACs
Chamath Palihapitiya filed for four blank-check companies on Wednesday along with a new partner Suvretta Capital Management, according to paperwork registered with the Securities and Exchange Commission. Each SPAC is seeking to raise $200 million and has a distinct focus in biotech.
READSPAC Surge May Benefit Targets That Can Play a Waiting Game
Founder of Methuselah Advisors John Chachas said his firm is telling companies looking to merge with a SPAC to wait. As blank-check firms start to run out of time, companies might be in a better position to negotiate a superior deal, Chachas told Bloomberg.
“We think companies shouldn’t answer their phones until about September 2022,” Chachas said. “After that they will have many suitors desperate to do a deal to save their founder’s capital from getting flushed.”
READCanyon’s Josh Friedman Sees Distressed Funds Feasting On SPAC Remains
“Distress will come back,” Friedman, who oversees $27 billion as co-chief executive officer of Canyon Capital, said in a Bloomberg “Front Row” interview. “It always does, because this type of environment is exactly what creates mistakes.”
“You’ve got big portions of the equity markets that are in business just to make acquisitions,” Friedman said. “SPACs, they go out of business if they don’t make acquisitions. And when people make acquisitions and they use debt to make acquisitions, there will be mistakes.”
Mobiv Acquisition Corp. (NASDAQ:MOBV) announced this afternoon that it has closed its combination with EV motorcycle-maker SRIVARU. Shareholders originally approved the deal at a special meeting held back on September 28, but at that time, the parties expected the transaction to take just a week to close. Redemptions whittled Mobiv’s IPO share pool of 10,005,000 down...
Achari Ventures I (NASDAQ:AVHI) has entered into a definitive agreement to combine with medtech firm Vaso Corporation at an equity value of $176 million, or 19.5x its 2022 adjusted EBITDA. Wuxi, China-based Vaso provides IT services and sales support to medical device manufacturers. The combined company is expected to trade on the Nasdaq under the...
EF Hutton Acquisition Corp. I (NASDAQ:EFHT) announced this morning that its shareholders have approved its business combination with E.C.D. Auto Design. At the meeting, there were 5,089,203 shares of common stock, representing approximately 76.82% of the issued and outstanding shares of common stock, present. In connection with the meeting, the company’s stockholders holding 3,470,945 shares,...
Legato Merger Corp. III (NYSE:LEGT) filed for a $175 million IPO yesterday afternoon, becoming the fourth SPAC to file this week. While the other three SPACs that filed their S-1s earlier this week intend to pursue targets in the financial services and biotech industries, Legato III, similar to the earlier Legato SPACs, will focus on...
At the SPAC of Dawn This week ends with an unusually busy earnings calendar as 172 US-listed companies report quarterly figures today. Among them is Exela Technologies (NASDSAQ:XELA), which completed a combination with Quinpario 2 in 2017. The billing software company has gone on to do another SPAC deal on November 29, this time spinning...