Below is a daily summary of links to the latest SPAC news and rumors gathered across the web.
Japan and China hope to tap into the SPAC market, private companies gain leverage, and Virgin Galactic gets sued
Japan Mulls Allowing Blank-Check Company Listings, Nikkei Says
Japan is considering changing its rules to allow IPOs by blank-check companies in the country, according to the Nikkei.
The country’s Financial Services Agency, its Ministry of Economy, Trade and Industry and the Tokyo Stock Exchange will begin discussions this summer, the paper reported. The cabinet plans to include the issue in its growth strategy plan in June, it said, and listing may become possible as soon as next year.
READMainland Chinese Tech Startups Hope to Tap SPAC Trend to Go Public
Tech start-ups backed by Legend Holdings, Baidu are among those exploring options regarding SPACs industry insiders told the South China Morning Post.
“We are in talks with more than 10 tech companies with businesses from electric vehicle components, e-commerce technology, biotech to media. Many of them are in Beijing’s tech hub, Zhongguancun,” said Jason Wong, a SPAC sponsor and partner at Whiz Partners Asia, the Asian affiliate of Japan’s Whiz Partners.
SPAC Pullback Pressures Creators to Find Quality Mergers
Because of the market reversal, some analysts now expect private companies and investors in SPACs to have more leverage when negotiating deal terms with blank-check firms. The shift shows how many on Wall Street and in Silicon Valley are grappling with the unprecedented market environment created by SPACs, which were a rarely used alternative to traditional IPOs before late 2020 and are now evolving quickly.
“People are getting a lot more choosy,” said Kristi Marvin, founder of data and research provider SPACInsider.
READThe Growth of SPAC-Related Litigation
The growth in SPAC-sponsored IPOs has been matched by a rise in SPAC-related litigation, and the trend is likely to continue, a report by Cohen & Gresser shows. Although these actions generally are in the early stages, it suggests that shareholders and the securities class bar are actively monitoring SPACs.
In New York alone, from October 2020 through April 2021, over 60 SPAC-related lawsuits were filed in state court. The majority of those lawsuits generally allege that SPAC directors breached their fiduciary duties to shareholders by providing allegedly inadequate disclosures regarding proposed de-SPAC mergers.
READVirgin Galactic Sued by Investor Over SPAC’s Accounting Issues
Virgin Galactic Holdings Inc. was sued by an investor who claims he lost money when the space-tourism company announced that it would restate its results due to regulatory guidance about the accounting treatment of warrants.
Investor Shane Lavin said in the lawsuit filed Friday in federal court in Brooklyn that Virgin Galactic and its executives knew that the results they were reporting were wrong. They are seeking class-action status for their lawsuit.
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At the SPAC of Dawn Although the market has largely recovered from a negative stretch last week, the roller coaster is tilted back downward for Trump Media (NASDAQ:DJT), which slid -8% yesterday to $32.57 – one of its lowest points since closing with Digital World last month. Other SPACs and de-SPACs are having a more...
Remember the metaverse? Many do not. Meta’s (NASDAQ:META) attempted transition to virtually living and working seemed to mark a trend that went up and down quickly, but one SPAC deal has both survived that roller coaster and may rise with a second. Back in December 2022, Newbury Street (NASDAQ:NBST) announced a $1.85 billion combination with...
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...