The Latest SPAC News and Rumors: June 25, 2021

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.

Dozens 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.

SPAC 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.

Credit 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.