Far Point Acquisition Corp. (FPAC), announced this morning that its board of directors “has unanimously determined that the previously announced business combination transaction with Global Blue Group AG (“Global Blue”) is not advisable or fair to, or in the best interest of, FPAC and its stockholders.” This came to no one’s surprise.
However, for a deal that held so much promise when it was first announced in early January of this year, it has had extraordinary bad luck. You would be hard pressed to find another company to be more impacted by a global pandemic and resulting recession that one predicated on international luxury travel.
Nonetheless, the board of directors is recommending AGAINST the transaction, however, the press release did not say they were terminating the transaction. Nor did FPAC say they were liquidating. I’m not a lawyer, but I suspect today’s press release is due to some sort of legal process.
Regardless, this deal is not happening. The real question is, will FPAC continue? And do they have a Plan B company up their sleeve? FPAC is running out of time since their deadline is June 14th, a little more than a month away. So clearly if they want to continue, they will need to extend, but they’ll need to get an extension proxy on file quickly in order to do that. Perhaps today’s announcement is the first step in that process, to be followed by a terminated deal and eventually an extension vote.
We should know more shortly….
At the SPAC of Dawn Following Wednesday’s positive CPI readings, the market is set to ingest both new jobless claims and Core PPI inflation numbers at 8:30 am ET. It might take a particularly rosy result to offset the many factors of market volatility recent. One new one got added to the bingo card this...
One of the eternal questions surrounding SPACs has been their ability or inability to match the opportunity and the performance of the traditional IPO route, and it has become received wisdom on Wall Street that SPACs don’t match up. This is ostensibly born out in in the aggregate statistics that are frequently cited. But, downside...
At the SPAC of Dawn Despite the specter of recession looming, many of the hot technology sectors that SPACs favored during the boom times appear to be coming back on the menu. Ares II (NYSE:AACT) is reportedly angling to lock down a deal with an autonomous trucking firm. Northern Genesis II and Reinvent Y each...
Cantor Equity Partners II (NASDAQ:CEPT) filed another warrantless SPAC showing that the firm will not be slowing down despite Cantor CEO Howard Lutnick moving his attentions to the administration. The new $200 million SPAC would join Cantor Equity Partners I (NASDAQ:CEPO), which became the first SPAC to IPO this year and Cantor Equity Partners (NASDAQ:CEP),...
At the SPAC of Dawn US market futures continue to be flash dark red after a major down day saw SPAC-favorite exchange Nasdaq lose about -4% of its value leaving it running down -9.5% on the year. The sudden downturn has been somewhat personal for the administration as Trump Media (NASDAQ:DJT) itself fell about -11.5%...