Below is a daily summary of links to the latest SPAC news and rumors gathered across the web.
Latest SPAC News: Churchill Capital IV is set to vote on merger with Lucid Motors, dozens of SPAC deals to enter Russell 3000 index, Jim Chanos warns of SPAC market, and Credit Suisse’s deals dry up
Churchill Capital IV Announces Shareholder Vote Date For Lucid Motors Merger
Churchill Capital IV is set to vote on its merger with Lucid Motors on July 22, and a redemption deadline of July 20.
READDozens of Groups Brought to Market Via SPACs to Enter Key Russell Index
Dozens of companies that entered US markets through deals with SPACs in the past year are set to graduate into the Russell 3000 index on Friday evening, giving a potential boost to the fortunes of electric vehicle (EV) developers and other speculative ventures, according to the Financial Times.
Among those companies are Canoo, Lordstown Motors and Nikola, companies that have dealt with the departures of key personnel and face investigations from the SEC over their disclosures to investors. All three have said they are cooperating with regulators.
Other notable additions will include the sports betting business DraftKings, healthcare company Multiplan and 3D sensors manufacturer Velodyne Lidar, according to Russell’s preliminary list.
READSPAC Boom Is Creating “Castles In The Sky”, Jim Chanos Warns
Jim Chanos, who is the founder of Kynikos Associates and best-known for predicting the collapse of energy group Enron, accused some who have taken companies public via a SPAC of “playing fast and loose with their projections” in an effort to attract retail investors.
Kynikos Associates is betting against a number of blank check companies that are “very bad businesses” and whose valuations “have gotten silly”, Chanos said. He declined to name them.
However, Kynikos is not entirely opposed to the SPAC market as it has taken long positions in blank check vehicles that are trading below $10.
READCredit Suisse’s SPAC Bonanza Dries Up
Credit Suisse’s SPAC deals are being closely monitored by investors and analysts, because revenue from them came to represent a large chunk of overall investment banking revenue last year. That raised concerns that the fees and deal volume might not be sustainable.
Credit Suisse went from making an estimated $466 million in gross SPAC underwriting fees in the first quarter, to $16.1 million between April 1 and June 15, according to the Wall Street Journal.
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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...