Below is a daily summary of links to the latest SPAC news and rumors gathered across the web.
Law firm Schulte sues SPAC over fees from failed Philippine casino merger
U.S. law firm Schulte Roth & Zabel is suing its former client 26 Capital Acquisition Corp to recover more than $1.9 million in legal fees following the special acquisition company’s failed merger with the Philippines’ largest casino.
Lucid opens Saudi Arabia’s first car production facility
Electric carmaker Lucid Group, which went public with Churchill IV, has inaugurated the first-ever car production facility in Saudi Arabia’s port city of Jeddah.
The facility, which is the automaker’s second Advanced Manufacturing Plant (AMP-2) and first international plant, will produce electric vehicles (EV) for Saudi Arabia and export to other markets.
The AMP-2 facility, located in King Abdullah Economic City (KAEC), will assemble the luxury electric sedan Lucid Air, with an initial capacity to produce 5,000 units a year.
Financial restatements surge among SPAC startups
The number of companies that have restated their financial results or disclosed accounting problems has increased significantly in recent years, and many of the problems have been occurring at special purpose acquisition companies.
SPACs, also known as blank check companies, are basically shell companies that are used as a vehicle for taking a company public.
Glass Lewis, a proxy advisory services company, reported last month that after several years of companies going public through IPOs or SPAC mergers, it observed a more than 2.5-fold increase in companies with concerning material weaknesses or restatements, partly because many of the companies are only in the early stages of developing strong internal controls.
Intuitive Machines launches apparel line
Intuitive Machines (NASDAQ:LUNR), which went public in a merger with Inflection Point in February, is selling a line of apparel on Amazon.com ahead of the planned November launch of its IM-1 mission to land on the Moon. The company is selling t-shirts, hoodies, tank tops, sweatshirts, and more.
Struggling Embark Gets Nod for $2.5 Million Investor Suit Accord
Embark Technology Inc. can proceed with plans for a $2.5 million settlement with shareholders who claim more than $230 million in total losses from their investments, a federal judge in California said, acknowledging the autonomous truck company’s “tenuous” financial position.
The settlement merits preliminary approval, Judge Jacqueline Scott Corley said Tuesday.
The case stems from Embark’s merger with Northern Genesis II, a special purpose acquisition company, as a route to going public.
At the SPAC of Dawn The last week of February is to host a moderate amount of SPAC votes and also the potential for some market-moving data releases. Shareholders for five SPACs are to consider extensions this week and seven more SPACs have scheduled completion votes. But, among the more interesting events on the agenda...
Terms Tracker for the Week Ending February 23, 2024 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. As expected, new issuance filings were quiet this week. But, deal announcements were surprisingly active. Four more SPACs announced combinations in a shortened holiday week...
Pyrophyte (NYSE:PHYT) faced a major regulatory setback for its combination with mining firm Sio Silica this week, but a recent analogous SPAC deal could provide some encouragement for a path forward. Sio Silica is working to develop a high-grade silica mine in the Vivian Sands outside Winnipeg, Canada and it inked the $708 million combination...
News and Rumors JD Supra: Securities class action lawsuits against SPACs and de-SPACs increased only slightly in 2023 with 27 after 2022 saw 24 and 2021 – 33. Lawsuits concerning the de-SPACing process itself dropped precipitously, however, representing just 21% of cases as compared to 69% in the previous two years and 80% in 2020....
At the SPAC of Dawn SPACs have officially landed on the Moon. Despite a few last-minute delays and minor malfunctions, Intuitive Machines’ (NASDAQ:LUNR) Odysseus lander made the first soft landing on the Moon since 1972 and the first ever by a commercial enterprise. Three other private missions to the moon have failed in recent years...