Monocle Acquisition Corporation Files for a $150M SPAC
by Kristi Marvin on 2018-11-20 at 9:27am

Monday evening, Monocle Acquisition Corporation (MNCL), filed for $150 million SPAC IPO.  Monocle is being led by Eric Zahler, as President, CEO and Director, and is a co-founder and Managing Director of Sagamore Capital, a private equity firm pursuing investments in the aerospace and defense, industrial electronics and selected business service markets.  Sai S. Devabhaktuni, formerly the Executive Vice President and Head of Corporate Distressed Portfolio Management at PIMCO, will be Chairman of the Board of Directors.

As for the name “Monocle”, The Monocle Group LLC is an investment firm founded by Mr. Devabhaktuni that invests in inefficient markets with an emphasis on debt, equity and other obligations of financially stressed businesses. Although, it does conjure up images of Mr. Peanut.

Looking at this SPAC’s structure, we see a 100% in trust, one share + one warrant deal, with 21 months to find an acquisition. However, if Monocle needs a three month extension for a full 24 months, they must deposit into the trust account $1,500,000, or $0.10 per share.

Monocle table

Furthermore, Cowen is participating in the at-risk capital of $5 million, by purchasing 83,333 units of the total 500,000 units at $10.00. $833,330 is a size-able purchase by an underwriter, so Cowen has a considerable amount at risk too.

This is a fairly middle of the road SPAC – mid size, mid-terms, mid-team.  As for the terms, given the current SPAC climate, it will be interesting to see if they need to amend by over-funding the trust to 101% or coming down to 18 months once it gets closer to pricing.

However, this does make SPAC #45 if it prices in 2018.  There should be one or two more that file this year, but it remains to be seen if those price in December or January. Stay tuned.

Cowen and Chardan are joint book-running managers.
Greenberg Traurig, LLP and Ellenoff Grossman & Schole LLP are issuer’s counsel and underwriter’s counsel, respectively.

Recent Posts
by Nicholas Alan Clayton on 2024-03-28 at 1:35pm

News and Rumors PR: Bannix (NASDAQ:BNIX) has provided more information on the combination with VisionWave that it announced yesterday, specifying that the imaging technology that VisionWave will acquire from GBT Technologies will primarily seek out applications in military combat scenarios and geological surveys. PR: Grove Collaborative (NYSE:GROV), which combined with Virgin Group II in June...

by Nicholas Alan Clayton on 2024-03-28 at 7:47am

At the SPAC of Dawn Fed Chair Jerome Powell has given new hints that the administration would be showing greater levels of comfort with inflation if a cut could help improve unemployment numbers. Those numbers could get an update today at 8:30 am ET to bring new jobless claims as well as final prices for...

by Nicholas Alan Clayton on 2024-03-27 at 1:31pm

News and Rumors CNBC: Former WeWork (OTC Pink:WEWKQ) founder Adam Neumann has offered to buy back control of the company for $500 million but has yet to secure the necessary financing. WeWork went public with BowX in October 2021. PR: Satellite telecom firm Spire Global (NYSE:SPIR) has signed an agreement to build and launch two...

by Nicholas Alan Clayton on 2024-03-27 at 11:38am

Bannix (NASDAQ:BNIX) has entered into a definitive agreement to combine with VisionWave Technologies for $30 million. The combined company is expected to trade on the Nasdaq once the deal is completed with an initial outside date of September 14. Transaction Overview Bannix has about $17 million in its trust after seeing 77.4% of its shares...

by Nicholas Alan Clayton on 2024-03-27 at 7:33am

At the SPAC of Dawn Much of the attention yesterday was on tracking the swings of the newly-completed Trump Media (NASDAQ:DJT) deal with the FT going as far to suggest it may “make SPACs great again.” Not all of the day’s data points were on the positive side of the ledger, however. IB Acquisition Corp....

logo

Copyright © 2023 SPACInsider, Inc. All Rights Reserved