DD3 Acquisition Corp., filed for a $50 million SPAC IPO today with a focus on Mexico and Hispanic business in the U.S.  DD3 is being led by Dr. Martin Werner, as Chairman and CEO, and Jorge Combe, as COO, both of whom are founding partners of DD3 Capital and former bankers at Goldman Sachs.

Specifically, Mr. Werner was the co-head of the Investment Banking Division for Latin America and the country head of the Mexico office, and Mr. Combe was a former Managing Director in the Investment Banking Division of Goldman Sachs in Mexico City. The team has solid backgrounds and an impressive array of prior transactional experience with many of Mexico’s energy, consumer and pharma companies.

Looking at this SPAC’s structure, there’s nothing fancy involved – no Crescent Term, no additional cash or fractions of warrants for an additional three months extension. It’s a straight-up, “just get it done” type of SPAC.

Furthermore, the focus of Mexico is interesting and this section in the Summary, in particular, stood out:

“Mexico’s capital markets and banking penetration levels are more comparable to those of less developed economies and fixed investments are the main driver of economic growth. Over the last couple of years, the Mexican Stock Exchange has tried to encourage investors through the incorporation of new investment vehicles; nevertheless, the Mexican stock market lacks a diverse sophisticated investors base to fully exploit the potential benefits of the investment. As a result, the Mexican stock market has not been effective in allowing high growth medium size companies to raise equity. We believe that this market imperfection will allow us to capitalize on unique opportunities as many companies will find alternative sources of capital and a U.S. listing extremely attractive and enables them to continue to grow and thrive.”

DD3 has all the ingredients for a successful SPAC.  Let’s see if they can make a meal out of it.  Summary of terms below.

DD3 Acquisition Corp. Summary of Terms:

• Focus:  Mexico and Hispanic businesses in the U.S.
• Size: $50 million
• 100.0% held in trust ($10.00 per share)
• $10.00 unit comprised of one Ordinary Share + 1 Warrant for 1 Share 
• Warrant call for redemption trigger:  > $18.00 (cash or cashless exercise)
• 21 months to complete an acquisition
• At-risk Capital: $2.25 million (225,000 units at $10.00)
• Underwriter fees: 2.5% + 3.5% “Business Combination Marketing” fee

EarlyBirdCapital is sole book-running manager.
Greenberg Traurig, LLP and Graubard Miller are Issuer’s Counsel and Underwriter’s Counsel, respectively.