Below is a daily summary of links to the latest SPAC news and rumors gathered across the web.
SPAC deal announcement activity continues to pick up and A-Rod thinks the recent regulatory scrutiny is a “good thing”.
Robotics Firm Memic Is In Talks to Go Public Via SPAC
Memic Innovative Surgery, a medical-device company that specializes in robot-assisted surgery, is in talks to go public through a merger with MedTech Acquisition Corp., according to Bloomberg. The SPAC may raise additional equity through PIPE, but the terms of the deal couldn’t immediately be learned.
Memic in April said it had raised $96 million from investors including Peregrine Ventures and Ceros, with participation from OurCrowd and Accelmed.READ
Shark Tank Judge’s SPAC in Talks to Merge With Insurer
Home-coverage startup Kin Insurance is in talks to go public via Omnichannel Acquisition Corp., led by recurring “Shark Tank” guest judge Matt Higgins, in a deal valued at over $1 billion, according to Bloomberg. Chicago-based Kin raised $63.9 million in a recent funding round from investors including Senator Investment Group, Hudson Structured Capital Management, the University of Chicago’s startup investment program, Allegis NL Capital and Alpha Edison. Earlier backers include August Capital and Commerce Ventures.
The insurer recently said it surpassed $100 million in annual recurring premium after just 21 months as a carrier in an industry that still sees more than 90% of home coverage sold through brick-and-mortar agencies.READ
A-Rod Sees Level Playing Field in SPAC Space
The recent regulatory scrutiny and resulting investor skepticism around SPACs is clearing the way for better deals, former Major League All-Star, SPAC investor and presumptive NBA owner Alex Rodriguez told Bloomberg.
“We like where the space is right now,” Rodriguez said in an interview. “You’ve basically eliminated a lot of the amateur players who just want to participate in the space just because it’s hot. This has really leveled the playing field.”READ
What the SEC Is Not Saying About SPACs
The SEC’s decisions may be based on an apparent misconception on SPACs, according to Bloomberg Law. The SEC’s concern about competition issues involving the business combination opportunities is unrealistic. A closer look to S-1 forms clearly shows that today, we do have sector focused or multi-sector focused SPACs. Competition might only emerge in the latter, although the number of potential targets are infinite, and competition extends far beyond American borders to Europe up until Asia. The world is the SPAC’s oyster.READ
SPACs May Have More Success Than Dual Class Shares in Bringing Tech Listings To Singapore Exchange
The unique structure of SPACs could help the Singapore Exchange (SGX) attract technology-related listings, even as a previous move to allow dual-class shares (DCS) disappointed.
The process of listing via a SPAC is faster and cheaper, Golden Gate Ventures partner Michael Lints told Business Times. The DCS structure does not add any flexibility for companies in terms of the roadshow, fundraising process or the listing process itself.
The local bourse had amended its rules in 2018 to allow for DCS, which provide extra voting rights to certain shareholders such as founders. “These differences in voting rights make a big difference for tech companies in terms of their consideration to list,” said PwC Singapore’s capital markets leader Tham Tuck Seng. “With these dual class shares, at least in terms of the direction, the strategy, you still have an important say there. I think that is important for founders as they are considering listing.”READ
Growing Acceptance for SPACs Seen, Maso Capital Says
Manoj Jain, founder partner and co-chief investment officer of Hong Kong-based Maso Capital, an Asia focused multi-asset class investment firm focused on event driven and convertible bond arbitrage, says as more SPACs search for targets, the more accepted it will be.READ
The Parent Company Takes Stake in SPAC Deal for Glass House Group
Jay-Z backed Parent Company announced a series of transactions that total more than $67 million in investments, including a $50 million stake in Toronto-based Mercer Park Brand Acquisition Corp., a blank-check company going public and merging with Long Beach-based Glass House Group in a $567 million deal. Glass House Group is the state’s largest cannabis producer.READ
Amid a Bear Market in SPACs, Hedge Funds Stick With Them
Glazer, Millennium, and Magnetar are now the top SPAC owners, according to new research obtained by Institutional Investor. Hedge funds boosted their holdings of SPACs by 73% during the first quarter. These investors owned $142.9 billion worth of SPACs at the end of March, compared with only $82.4 billion at of the end of December.READ