Megalith Acquisition Corp: Focused on Financial Services and Fintech
Late Friday, Megalith Financial Acquisition Corp. filed for a $150 million SPAC IPO with a focus on the financial services industry as well as fintech businesses. Megalith is being led by Jay Sidhu, as Executive Chairman, and Samvir Sidhu, as CEO.
Jay Sidhu has had a long and well-known career in the banking and financial services industry, most notably as CEO of Sovereign Bancorp Inc. (NYSE: SOV) from 1989 until 2006. Under Jay Sidhu’s leadership, Sovereign grew from a $600 million banking institution with an IPO value of about $24 million to the 17th largest bank in the United States with a market capitalization of almost $12 billion.
Samvir Sidhu, who is Jay’s son, is also quite impressive. In 2010, at the ripe old age of 26, he founded Megalith Capital Management, a real estate investment company focused exclusively on New York City. According to The Real Deal, the firm has more than $1.2 billion in assets.
However, looking at this IPO’s structure, the warrant call for redemption threshold seems very high at $24, especially since this transaction is already offering a full warrant and 101% in trust ($10.10). I find that very curious given this management team’s names and background. Maybe we’ll see changes in further filings. Deal terms below.
Summary of terms are as follows:
- Focus: Financial Services/Fintech
- $10.00 unit comprised of one share Class A Common Stock + one Warrant
- Warrant call for redemption threshold: equals or exceeds $24.00 (cash or cashless exercise)
- 101% held in trust ($10.10 per share)
- 24 months to complete an acquisition
Chardan is sole bookrunning manager. Ellenoff Grossman & Schole LLP and Graubard Miller are Issuer’s Counsel and Underwriter’s Counsel, respectively.
Vendome Acquisition Corporation I (NASDAQ:VNMEU) announced the pricing of its $200 million IPO and its units are expected to begin trading on the Nasdaq under the symbol “VNMEU”, Wednesday, July 2, 2025. The new SPAC plans to focus its search on target business in the consumer sector operating in North America, Southeast Asia, and Europe....
Origin Investment Corp. I (NASDAQ:ORIQU) announced the pricing of its $60 million IPO and its units are expected to begin trading on the Nasdaq under the symbol “ORIQU”, Wednesday, July 2, 2025. The new SPAC aims to mount a broad search for a target with a strong management and both revenue and earnings growth potential....
1RT Acquisition Corp. (NASDAQ:ONCHU) announced the pricing of its $150 million IPO and its units are expected to begin trading on the Nasdaq under the symbol “ONCHU”, Wednesday, July 2, 2025. The new SPAC plans to target company in the digital asset ecosystem involved in the creation, storage, exchange or management of such assets, whether...
D. Boral ARC Acquisition II Corp. (NASDAQ:ARBCU) has filed for a $250 million SPAC to give underwriter D. Boral a second in-house SPAC to pursue deals with. The new SPAC offers investors a 1/2 warrant and an initial 18-month time frame to complete a deal. D. Boral II’s sponsor may automatically extend this once by...
Ribbon (NASDAQ:RIBB) has entered into a definitive agreement to combine with Japanese biotech firm DRC Medicine at a pro forma equity value of $422 million. Tokyo-based DRC Medicine manufactures reusable anti-bacterial and anti-allergen wearables and aims to go deeper into the medical device and pharmaceutical space. Transaction Overview Ribbon is expected to provide $50.4 million...