Silver Spike Acquisition Corp. Goes to 18-Months
This morning, Silver Spike Acquisition Corp. (SSPKU), the $250 million cannabis-focused SPAC, filed a new amended S-1. The only material change noted is the duration was adjusted down from 24 months to 18 months. This deal is still on track to price tonight, but this change should generate a little bit more demand.
However, it’s interesting to note that this is a solid team with a solid underwriter and yet, they felt the need to go to 18 months. For reference, Tuscan II (THCA), the most recent cannabis SPAC, priced just last month with a 1/2 warrant and 21 months. Plus, Tuscan was a little problematic given that the CEO has three cannabis SPACs in the market at the same time searching for targets. This is all to say that it feels like the tide is turning on terms and the SPAC market is getting a little tighter. However, more on that later today in a forthcoming post. In the meantime, revised summary of terms below.
Revised summary of terms: