Friday Happy Hour Update: CCC, CNAC, BRPA and GIX
It’s a Summer Friday, so we’re starting the Happiest of Hours a little early.
It’s Happy Hour somewhere, but for New York, it’s still a little on the early side, so maybe let’s go with a boozy Friday lunch and see what it turns into to. With that being said, in no particular order, the below is a round up of current SPAC news.
CLARIVATE ANALYTICS (CCC)
If you’ve been watching Clarivate Analytics (CCC), the combined company of Churchill Capital (which closed only three months ago in mid-May), the share price is currently trading today around $17.20. This deal has been a runaway hit, but the reason to keep eye on its price is because it’s getting very close to it’s warrant call trigger of $18.00. If you recall, Churchill/Clarivate can call their warrants if the last reported sale price equals or exceeds $18.00 per share for any 20 trading days within a 30-trading day period and we’re getting pretty close to $18.00 now. Clarivate can call their warrants for cash or cashless exercise, but which of those option they decide to use remains to be seen.
However, Clarivate has 34,500,000 public warrants outstanding, so if they WERE to call their public warrants for cash, that exercise would bring in a cool $396.8 million to the company. Not too shabby. Cleans up the warrant overhang and nets Clarivate a nice pile of cash. Plus, investors are $6.50 in-the-money. Keep CCC on your radar….
CONSTELLATION ALPHA (CNAC) & BIG ROCK PARTNERS (BRPA) SET SHAREHOLDER VOTE DATES
Both Constellation Alpha (CNAC) and Big Rock Partners (BRPA) scheduled their respective shareholder votes for the the last two weeks of August. CNAC’s will be on August 27th, and BRPA’s on August 21st.
CNAC’s final shareholder vote will be to approve their combination with Dermtech. As a reminder, CNAC will also be doing a reverse one-for-two stock split at closing and, keep in mind that CNAC’s unit included a Right. So, post closing there will be 1.4375 million Rights Shares hitting the market. Given that CNAC is doing at PIPE at $3.25 (pre-reverse stock split), there should be a fairly immediate sell-off of those Rights Shares.
Big Rock Partners, on the other hand, will be voting to approve their extension from August 22nd to November 22nd, 2019. BRPA hasn’t announced a combination yet, but they are only asking for a three-month extension. If they don’t announce something soon, they will most likely need to extend again in November. However, the fact that they are only asking for three months this time around could mean that they don’t think they’ll need more time, i.e., they’re getting ready to announce something shortly. Just a guess. The sponsors will be contributing $0.02 per share to the trust each month for shareholders that do not redeem.
GIGCAPITAL2 (GIX)
GigCapital2 (GIX), made some changes to their management team. Ms. Tara McDonough, who was previously Gig2’s CFO, will be leaving and is being replaced by Brad Weightman, who was most recently Senior Business Controller at Integrated Device Technology, Inc. (NASDAQ IDTI). Additionally, Dr. Raluca Dinu has been appointed to President and Chief Executive Officer, having previously been a director on the Gig2 board.
Lastly, Gig2 has also appointed two new advisors. Andrea Betti-Berutto has been appointed Hardware Chief Technical Officer, while Peter Wang has been appointed Software Chief Technical Officer. Each will be doing the hardware and software screening and vetting process of the Company, respectively.