At the SPAC of Dawn
Good morning! Watch this space moving forward as a roundup of evening filings as well as news nuggets to nibble on beside your morning coffee.
AST SpaceMobile (NASDAQ:ASTS) is set to provide a business update and preliminary third quarter financials a week from today on November 14, and it may be a call worth tuning into as the space business continues to shake out for better and worse.
Yesterday brought the news that rocket-making de-SPAC Astra (NASDAQ:ASTR) was hurtling back to Earth after failing to maintain some debt covenants. But AST, which combined with New Providence in 2021, could tell a different story with an unlikely boost from Elon Musk.
The billionaire’s own space venture Space X has tipped its finances in recent weeks as it engages with financiers. It is now reportedly expecting to log revenues of about $9 billion in 2023 and $15 billion in 2024. What’s more, the private launch pioneer is seeing revenue from its Starlink space-based internet platform outpace that of its launch business and it expects Starlink to account for the majority of sales in next year.
Geopolitical tensions have doubtless played a role as Starlink has been providing critical services to the Ukrainian military (with some controversial limitations) and the service has been extended to at least some humanitarian organizations engaged in the Israel-Palestine conflict.
That would appear to be a bright endorsement of AST’s business model, which has eschewed the launch risk held by rocket-focused firms like Astra, and instead rides its satellites up to space through partners. Once enough of its satellites are in place, it plans to operate a global space-based 4G mobile network with initial commercial service earmarked to go online in 2024.
News and Rumors
- PR: Abacus Life (NASDAQ:ABL) launched a wealth management division called ABL Wealth in partnership with Dynasty Financial Partners, four months after the asset manager and buyer of life insurance policies completed its combination with East Resources.
- Newswires: Logiq (OTC:LGIQ) has begun a dividend distribution to its shareholders of of 3,762,000 shares in its subsidiary Collective Audience (NASDAQ:CAUD), formerly known as DLQ, which completed a spinoff combination with Abri SPAC I on November 2.
- BioFuels Digest: The Philadelphia Eagles has partnered with bioplastics producer Verde Bioresins and GreenGear Supply Company to introduce the EcoShop bio-based, reusable, recyclable, and landfill-degradable bag. TLGY (NASDAQ:TLGY) announced its business combination with Verde Bioresins in June.
- CNBC: After weeks of increasing signs, office sharing network WeWork (NYSE:WE) formally declared Chapter 11 bankruptcy, two years out from its combination with BowX.
- Renewables Now: UK SPAC Pineapple Power (LON:PNPL) has signed to a non-binding agreement to combine with Canadian hydrogen power company Ilios Hydrogen in a £33 million ($40.6 million) deal.
- Battery Future Acquisition Corp. (NYSE:BFAC) entered into non-redemption agreements with unaffiliated third parties in for an aggregate of 687,500 Class A ordinary shares. In exchange for the foregoing commitment to not redeem such shares, the sponsor has agreed to transfer to the investors up to an aggregate of 137,500 Class B ordinary shares.
News and Rumors PR: Medtech firm Agiliti (NYSE:AGTI) has agreed to be acquired by an affiliate of private equity firm Thomas H. Lee Partners (THL) at $10 per share and an enterprise value of $2.5 billion. This represents a 43% premium over the company’s 90-day VWAP and returns it to 100% ownership by THL five...
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....