Covid-19 claims its first SPAC.
HL Acquisitions Corp. (HCCH), announced this morning it has mutually terminated its Sale and Purchase Agreement with Chi Energie (Singapore) Pte. Ltd. (“Chi Energie”). The reason cited being, “the current extraordinary market conditions surrounding the industry.“
Chi Energie, was developing a modular LNG business to supply the remote power, oil field service and transportation sectors in Oman, but due to the Russian-Saudi oil price war, as well as the current Covid-19 crisis, clearly the current conditions no longer made sense for this deal. In fact, it would be difficult to come up with a more challenging environment.
However, HL Acquisitions Corp. did extend their completion date just one month ago, so they still have until July 2, 2020 to announce and close a new transaction. That’s three months away, so most likely, they will need to extend again, but they do have time to find and announce something new. Whether that will be in the energy space again, remains to be seen, but keep in mind that HL is not obligated to look in that sector. Energy was their originally stated focus, but they can still look for companies in other industries.
Let’s see what they bring back for the next go-around.
At the SPAC of Dawn Tucked into the bill that provides $95 billion in funding to American allies passed by the House this weekend is another measure that is likely to have far more impact on at least one pending deal in SPAC world. It would appear that the timing was fortuitous for TikTok rival...
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...