Below is a daily summary of links to the latest SPAC news and rumors gathered across the web.
Palihapitiya files for four more SPACs while Canyon’s Josh Friedman sees mistakes being made
Billionaire Investor Chamath Palihapitiya Files For Four New Biotech SPACs
Chamath Palihapitiya filed for four blank-check companies on Wednesday along with a new partner Suvretta Capital Management, according to paperwork registered with the Securities and Exchange Commission. Each SPAC is seeking to raise $200 million and has a distinct focus in biotech.
READSPAC Surge May Benefit Targets That Can Play a Waiting Game
Founder of Methuselah Advisors John Chachas said his firm is telling companies looking to merge with a SPAC to wait. As blank-check firms start to run out of time, companies might be in a better position to negotiate a superior deal, Chachas told Bloomberg.
“We think companies shouldn’t answer their phones until about September 2022,” Chachas said. “After that they will have many suitors desperate to do a deal to save their founder’s capital from getting flushed.”
READCanyon’s Josh Friedman Sees Distressed Funds Feasting On SPAC Remains
“Distress will come back,” Friedman, who oversees $27 billion as co-chief executive officer of Canyon Capital, said in a Bloomberg “Front Row” interview. “It always does, because this type of environment is exactly what creates mistakes.”
“You’ve got big portions of the equity markets that are in business just to make acquisitions,” Friedman said. “SPACs, they go out of business if they don’t make acquisitions. And when people make acquisitions and they use debt to make acquisitions, there will be mistakes.”
Israeli tech firms have made up an outsized proportion of SPAC activity and despite the ongoing tensions in its region, that dealmaking is continuing unabated. In fact, the SPAC named for the particular mission of taking Israeli firms public through SPACs, Israel Acquisition Corp. (NASDAQ:ISRL) in fact just took one step closer in completing that...
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...