Roth CH Acquisition I Co. (ROCHU), filed for a $75 SPAC IPO this morning, marking the fifth SPAC to file within the past three days proving that the SPAC pipeline is still healthy, even if everything else is catching Corona fever. In fact, it’s pretty remarkable considering that despite the current market volatility, SPACs have managed to file for an additional $1.325 billion in new issuance since Friday.
Nonetheless, Roth CH intends to focus on companies in a broad range of sectors including healthcare, wellness, consumer and technology. Additionally Roth CH will be led by Byron Roth, as Chairman and Chief Executive Officer, and he is currently Chairman and CEO of Roth Capital Partners, LLC, a privately-owned investment banking firm headquartered in Newport Beach, California. Mr. Roth will be joined by Rick Hartfiel, as Co-President, along with Aaron Gurewitz, as the other Co-President. Mr. Hartfiel has been the Head of Investment Banking at Craig-Hallum (the “CH” in Roth CH Acquisition I Co.) since 2005, while Mr. Gureweitz has been Head of Equity Capital Markets at Roth since January 2001.
Additionally, since both Roth Capital and Craig-Hallum are functioning as underwriters on this transaction, in addition to having team members currently working at their respective firms, BTIG has been brought in as the Qualified Independent Underwriter (QIU) to remove any conflicts of interest.
Looking at this SPAC’s structure, it is a 21 months (+ 3 months for $0.10 per share to trust), 100% in trust, $75 million SPAC, with a 1/2 warrant included in its unit. However, Roth CH’s warrant is going with the $16.50 warrant call trigger, which is common among the smaller-sized SPACs.
Look for this SPAC (along with all the other SPACs on file to IPO) to be motivated to price very quickly. We’re in uncertain times so teams won’t want to wait too long.
Summary of terms below: