The Latest SPAC News and Rumors: November 18, 2021
Below is a daily summary of links to theca latest SPAC news and rumors gathered across the web.
Latest SPAC News: PrimeBlock in talks to merge with 10X SPAC, Lucid’s 440% surge draws tepid interest from analysts, and SEC probes ATI Physical Therapy on earnings guidance
Bitcoin Firm PrimeBlock In Talks to Merge With 10X SPAC
Prime Blockchain Inc., a Bitcoin mining and infrastructure firm, is in talks to merge with special purpose acquisition company 10X Capital Venture Acquisition Corp. II (NASDAQ:VCXA), according to Bloomberg.
The SPAC is seeking to raise at least $150 million through a PIPE to support the transaction, which is set to take Prime Blockchain public and value the combined entity at roughly $1.5 billion.
READLucid’s 440% Jump Draws Tepid Interest From Street Analysts
Lucid Group Inc. (NASDAQ: LCID) has become a darling of retail traders during this year’s 440% climb. Wall Street analysts, though, are a different matter.
The third-largest U.S. electric-vehicle startup, which now commands a bigger market value than Ford Motor Co. (NYSE:F), is covered by only three Wall Street analysts, according to data compiled by Bloomberg. That makes it the least covered stock after Berkshire Hathaway Inc. (NYSE:BRK.A) among U.S. companies with a market capitalization of more than $70 billion.
READSEC Probes SPAC-Backed ATI Physical Therapy on Earnings Guidance
ATI Physical Therapy Inc. (NYSE:ATIP), a rehabilitation services firm that merged with a blank-check company earlier this year, said it received an information request from federal securities regulators tied to an earnings forecast.
The Securities and Exchange Commission asked ATI on Nov. 5 for documents and financial information tied to the company’s July 26 earnings projection, which drastically cut earlier guidance, according to a Wednesday regulatory filing.
READSenator Elizabeth Warren Calls on SEC to Investigate Trump SPAC Deal
Sen. Elizabeth Warren on Thursday asked the Securities and Exchange Commission to investigate a planned SPAC deal involving former President Donald Trump’s planned social media platform.
Warren, a Massachusetts Democrat, in a letter to SEC Chairman Gary Gensler noted recent news reports that Digital World Acquisition Corp. (NASDAQ:DWAC), which last month announced plans to merge with Trump’s new company, “may have committed securities violations by holding private and undisclosed discussions about the merger as early as May 2021, while omitting this information filing and other public statements.”
READGelesis Receives $30 Million Plenity Order from Ro
Gelesis announced today that leading U.S. direct-to-patient healthcare company Ro has placed a $30 million fully paid pre-order for the company’s first commercial product for weight management, Plenity. Plenity was initially made available through a beta launch in 2020, and demand quickly outpaced supply while Gelesis worked to construct a larger manufacturing facility. Gelesis’ first commercial-scale manufacturing line at the facility is now complete and validated.
Gelesis and Capstar Special Purpose Acquisition Corp. (NYSE: CPSR) announced in July that they entered into a definitive business combination agreement.
EQRx and Evotec Announce Integrated Drug Discovery and Development Partnership
EQRx, a new type of pharmaceutical company committed to developing and delivering important new medicines to patients at radically lower prices, and Evotec SE (NASDAQ: EVO), a leading life science company, today announced a collaboration to design, discover and develop new therapeutic options for patients.
The collaboration will help accelerate EQRx’s pipeline expansion efforts by leveraging Evotec’s unique data-driven, fully integrated R&D platform, applied across different drug modalities and therapeutic areas. This approach aims to expedite the invention and development of novel drugs and helps ensure superior translation from research ideas to safe and efficacious medicines.
In August 2021, EQRx announced a proposed combination with CM Life Sciences III (NASDAQ: CMLTU) to accelerate its growth. The combination is expected to be completed in the fourth quarter of 2021.