And the SPACs just keep coming….
The ARYA Sciences team dropped their latest SPAC this morning by filing ARYA Sciences Acquisition Corp. II (ARYBU), a $125 million SPAC focused on the healthcare sector. Once again, ARYA II will be sponsored by Perceptive Advisors, one of the most well known life sciences hedge funds. Futhermore, ARYA II will be led by Joseph Edelman, as Chairman, and Adam Stone as CEO and Director, both having previously led the first ARYA.
This latest SPAC is a near carbon copy of the first SPAC, which has nearly the same team (with the exception of one Director), same size ($125 million), same focus (healthcare in North America or Europe and specifically, life sciences and med tech), and same lead banker (Jefferies). Additionally, ARYA II will employ an “Indication of Interest” forward purchase of up to $25 million by the sponsor. Exact same as in ARYA I. However, what about the differences…
Notably, ARYA II has added Goldman Sachs to the cover, albeit to the right of Jefferies. Additionally, the terms have gotten a little better for this go-around, but keep in mind that the first ARYA is currently looking to close its combination with Immatics and the share price is currently trading at $10.85, so this should be a successful deal. That kind of result commands better terms.
As for the terms specifically, ARYA II will be asking this time for a 1/3 warrant, rather than the 1/2 warrant they had previously. Additionally, ARYA II will be a 24 months, $10.00 in trust (100%) SPAC, with the ability now to call the warrants for shares at $10.00 (in additional to cash or cashless exercise at $18.00).
On the whole, the terms aren’t that different if you line them up side by side. The main difference is the 1/3 vs. 1/2 warrant. However, again, this team has the very important SPAC experience, which is successful SPAC experience at that. As such, the terms fit.
This deal should have no trouble selling. They’re a team with a hot-hand and they’ll be looking in a currently favorable sector, in which this team has experience in spades. They could probably easily upsize, but if we look to their first SPAC for guidance, ARYA I did not upsize despite huge demand, so perhaps they’ll be following the same playbook. Look for ARYA II to price early June.
Summary of terms below:
Crown PropTech (OTC:CPTKW) has entered into a definitive agreement to combine with rare earth mining firm Mkango Resources (TSX-V:MKA) at a pre-money equity value of $400 million. London-based Mkango is working to commercialize a chain of rare earth mining and refining facilities in Africa and Europe. The combined company is expected to trade on the...
At the SPAC of Dawn One of the biggest sources of uncertainty in the SPAC market in recent years has been regulatory changes, but new shifts could be in its favor. SEC Chairman Paul Atkins told CNBC yesterday that the commission would review the rules for SPACs after “rather controversial” changes to the rules passed...
McKinley Acquisition Corporation (NASDAQ:MKLYU) has filed for a $150 million SPAC to hunt for an innovative target company with an experienced financial team that has dabbled in SPACs before. The new SPAC is offering investors one right to a 1/10 share in each unit with no overfunding of the trust, but it could provide a...
At the SPAC of Dawn The rain of SPACs has continued with four expected to make their debuts during today’s trading sessions after pricing their IPOs overnight. The largest of these, EQV Ventures II (NASDAQ:EVACU), even managed an upsize, making it the largest SPAC IPO since Ares II (NYSE:AACT) pulled together $450 million in 2023....
EQV Ventures II (NASDAQ:EVACU) announced the pricing of its upsized $420 million IPO and its units are expected to begin trading on the Nasdaq under the symbol “EVACU”, Wednesday, July 2, 2025. The new SPAC plans to merge with an energy target involved in upstream exploration or production. EQV II’s management team is led by...