Traders have long looked to SPACs for special plays around their votes as the post-vote period frequently involves some turnover in holdings that can be attractive to shorts, and redemptions can reduce the stocks to low-float situations prone to easy upward pressure.
This week appears to have produced a handful of the latter situations, headlined by Grindr (NASDAQ:GRND). The LGBTQ+ dating app and social network closed its combination with Tiga and began trading today, zooming up more than +333% near mid-day to a high of $46.97.
While there likely is genuine enthusiasm for the network, which has 11 million monthly active users, this extreme price movement is more likely due to the fact that 98.2% of the stock’s public shares were redeemed in its completion vote, leaving a float of just 485,233 shares.
Satixfy (NASDAQ:SATX) closed its combination with Endurance back on October 27 and did not initially divulge its final redemption figures, but it surged above $50 the following day before tumbling to the low teens once again on November 1. It is now back on tear, zooming +415% on the week, although it has not released any news of note or made any SEC filings over the past week.
AGBA Group (NASDAQ:AGBA) completed its deal with its namesake SPAC four days ago, and went through an initial washout period dropping to a close Thursday at $4.50. But, it is now up about +53% in early afternoon trading. Traders have likely noticed that with 99.5% redemptions, it has been left with just 23,642 public shares post-vote. But, because it had rights to 1/10 shares in its IPO units, their conversion has expanded the pool available since close.
One more to watch is Cartesian Growth (NASDAQ:GLBL), which gained shareholder approval for its combination yesterday with wealth management firm Alvarium Tiedemann Capital. It saw 99.8% of shares redeemed, but announced it would postpone completing the deal until January 3, 2023 “in the interest of merger-accounting simplicity”.
It nonetheless zoomed to a brief high of $28.49 on November 16 in between the redemption deadline and shareholder vote before dropping back down to the neighborhood of its pro rata trust value. It experienced another short-lived spike to $14 this morning.
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...