China, China, China….(click)
TKK Symphony is widely expected to price their $200 million China consumer/lifestyle SPAC tonight. As a reminder, TKK Symphony is being led by Sing Wang, as Chairman and CEO. Mr. Wang, who is currently Chairman of TKK Capital, a private equity/wealth management company, is also CEO and Director of CM Seven Star Acquisition Corporation.
TKK does offer a slight twist on the extensions via a 4-month extension on top of their stated 18 months to complete. In order to access that extension, there is no shareholder vote. Instead, TKK must issue to shareholders, via a dividend, another warrant to purchase one-half of one Share, essentially turning the deal into one Share + one FULL Warrant (rather than the initial one half of one Warrant), plus one Right.
China-focused SPACs are hot, so getting the IPO priced for TKK should not be an issue. However, I’m curious to see how this one trades tomorrow versus the “Chardan-template” for China SPACs, which offer three 3-month extensions for $0.10/share for each extension. TKK is offering warrants, whereas the other China-focused SPACs are offering cash. As the saying goes, cash is king, but it will be interesting to compare.
Summary of terms located below:
- Focus: Consumer/Lifestyle in China
- $10.00 unit comprised of one Ordinary Share + one Warrant (1/2 share) + one Right
- Each Right entitles the holder to receive one-tenth (1/10) of one Share
- Warrant call for redemption threshold: equals or exceeds $18.00 (cash or cashless exercise)
- 100% held in trust ($10.00 per share)
- 18 months to complete an acquisition + 4 month extension by vote (shareholders receive 1/2 warrant)
- Underwriter fees: 2.0% + 3.5% business combination marketing agreement. EarlyBirdCapital is sole book-runner, I-Bankers Securities is co-manager.
With the passage this weekend of $95 billion in funding for Ukraine, Israel and Taiwan by the House of Representatives, some focus has gone back towards the defense sector, which has generally had a good year as a whole. But, SPACs have not been as active in defense, despite the fact that companies in the...
At the SPAC of Dawn As April’s sleepy month for SPAC news continues, there is only one special meeting on the docket to consider a SPAC deal approval, that being today’s vote on Pegasus Digital Mobility‘s (NYSE:PGSS) combination with equipment manufacturer Schmid. Three more SPACs are facing extension votes this week, including Pyrophyte (NYSE:PHYT), whose...
Terms Tracker for the Week Ending April 19, 2024 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. Passover and school spring break starts next week, which most likely means a slowdown in SPAC filing activity. Although Churchill IX is now rumored to...
Despite a week of general pull-backs in the market, fintech firm Ibotta (NYSE:IBTA) nonetheless took the dive and had a good week debuting via a traditional IPO in the choppy waters. The company, which provides app-based consumer cashback discounts on purchases, priced its IPO at $88, above its proposed range of $76 to $84, and...
At the SPAC of Dawn Happy Friday! SPACInsider has unveiled new presets on SPAC Performance accessible via the Data drop-down to easily sort for the highest and lowest performing active SPACs and de-SPACs. On the de-SPAC side, Vertiv (NYSE:VRT) continues to be well ahead of the pack, logging a 710% return by share price adjusted...