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.
SPACs had a quiet start to the week yesterday with the market digesting a new Middle East war and extra helpings from Canadian Thanksgiving.
The question now is what sort of lasting affect the new outbreak of violence will have. Although US exchanges tumbled out of the gate, they finished the day with a gain – one that was not shared by Israeli de-SPACs broadly. HUB Cyber Security (NASDAQ:HUBC) was one exception as the Mount Rainier target jumped up +180% late in the trading session.
More broadly, major defense stocks like Northrop Grumman (NYSE:NOC) and Lockheed Martin (NYSE:LMT) logged positive momentum alongside oil stocks as is to be expected. But, crude oil prices have ticked up only slightly at $86.28 near the beginning of the day, well below their 52-week high above $95.
Oil prices are no longer the bellwether for the US economy that they once were, and interest rates may instead be the ripple that changes things for SPACs. Fed officials intimated that recent rises in long-term Treasury yields might preclude the need for further hikes.
Yet, throughout the day those yields were trending lower, indicating that a general risk-off sentiment – never a positive for SPACs – might linger.
News and Rumors
- PR: Hudson Acquisition I Corp. (NASDAQ:HUDA) mourns the loss of CFO Hon Man Yun, who passed away October 3. The SPAC announced an LOI with a biotech company in March.
- Motley Fool: Ackman’s SPARC provides an attractive wrinkle for SPAC investors, but also comes at a time when the IPO market appears to be returning.
- PR: Japan-based AERWINS, which combined with Pono in February, will launch a US subsidiary for a new hoverbike design, with Executive Chariman and President Kiran Sidhu putting up $300,000 of the initial working capital.
International SPAC News
- London-listed SPAC Net Zero Infrastructure (LSE:NZI) has signed a non-binding letter of intent to combine with Australian energy company LINE Hydrogen.
At the SPAC of Dawn PHP Ventures (NASDAQ:PPHP) provided an update this morning on its combination with modular construction firm Modulex in the form of a refreshed investor presentation. The parties have been quiet on the news front since they announced the combination over a year ago in December 2022, but a few key facts...
DT Cloud Acquisition Corporation (NASDAQ:DYCQU) announced the pricing of its $60 million IPO and its units are expected to begin trading on the Nasdaq under the symbol “DYCQU” today, Wednesday, February 21, 2024. The new SPAC plans to focus its target search on a company that is under-performing due to a temporary dislocation in the...
SDCL EDGE (NYSE:SEDA) has entered into a definitive agreement to combine with copper alloy manufacturer cunova at an enterprise value of $736 million, or 9.4x its 2023E adjusted EBITDA. Osnabrück, Germany-based cunova manufactures copper casts, fittings and conductivity products for the industrial, defense and aerospace sectors. The combined company is expected to trade on the...
Deals and Funding Power & Digital (NASDAQ:XPDB) has secured a $10 million investment from Rice Investment Group into its combination with HVAC technology firm Montana under undisclosed terms. two (NYSE:TWOA) has secured a $15 million PIPE at $10 per share for its combination with LatAm Logistic Properties. News and Rumors PR: Adtech firm Banzai International...
Acri Capital (NASDAQ:ACAC) has entered into a definitive agreement to combine with electronics manufacturer Foxx for $50 million in share compensation. Texas-based Foxx provides communication terminals and IoT services to the telecom sector as well as consumer electronics for retail buyers. The combined company is expected to trade on the Nasdaq once the deal is...