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.
“The show must go on!” has been a theme of sorts lately for the SPAC market navigating a tough crowd of macro headwinds.
All eyes have been on BowX‘s de-SPAC WeWork (NYSE:WE) ever since it missed a debt payment earlier this month. But, it’s move yesterday to make permanent its appointment of David Tolley as CEO seemed to indicate it would double down on his vision to renegotiate all leases the massive tenant currently is a party to and box up underperforming locations.
Few business models were poised to be more sensitive to the pandemic and its aftermath than flexible office spaces, and yet the pioneer of the concept is still trucking at least for now.
The risks of that business model still pale in comparison to what companies seated in a warzone are facing. And yet, Israel Acquisitions Corp. (NASDAQ:ISRL) still announced a letter of intent with Tel Aviv-based Pomvom (TA:PMVM) into this news environment without needing such a move to secure an extension or other move.
At an earlier stage of the SPAC process, Iron Horse Acquisition Corp. withdrew its proposed S-1 yesterday, but already says it will be back. This will be a new submission as its last S-1 was abandoned in September, but like many others in this business, its getting back on that horse.
News and Rumors
- JDSUPRA: In a blow to 26 Capital Acquisition Corp., a Delaware court declined to grant it specific performance in reviewing its failed combination with Okada Manila casino – a case containing “a complicated and cinematically wacky set of facts”. The trial does have the potential ramifications for other international SPAC deals as the court here noted its reluctance to rely on a foreign court to oversee the portions of this case in its jurisdiction.
- Bloomberg: Hydrow Inc., a fitness company that counts NFL star Travis Kelce and growth equity firm L Catterton among its investors, is in talks to acquire smaller rival Cityrow. Hydrow previously discussed merging with Sandbridge X2 Corp., but those talks fell apart.
- Home Healthcare News: Sharecare Inc. (NASDAQ:SHCR) confirmed last week that it had received an unsolicited acquisition proposal from Claritas Capital. Sharecare became a publicly listed company in June 2021 after combining with Falcon Capital Acquisition Corp.
- ExcelFin Acquisition Corp. (NASDAQ:XFIN) announced that its extension meeting, originally scheduled for October 18, is being adjourned to October 20.
- TortoiseEcofin Acquisition Corp. III (NYSE:TRTL), which announced a postponement of its extension meeting to October 19 yesterday, has changed its contribution commitment to $0.015 per share each month from $0.01 per share or a maximum of $200,000.
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....