The Latest SPAC News and Rumors: January 4, 2023
Below is a daily summary of links to the latest SPAC news and rumors gathered across the web.
Latest SPAC News: Lenders to SPAC Cyxtera merger seek legal advice on debt, LanzaTech founder to take on advisory role, and SEC charges former SPAC CFO for orchestrating $5M fraud scheme
Lenders to 2021 SPAC Merger Cyxtera Seek Legal Advice on Debt
A group of lenders to struggling data-center firm Cyxtera Technologies Inc. (NASDAQ:CYXT) has engaged Gibson, Dunn & Crutcher as legal counsel as the company seeks to address upcoming debt maturities, according to people with knowledge of the situation who asked not to be identified because they aren’t authorized to speak about it.
The mandates come as Cyxtera, which went public in 2021 in a merger with a blank-check company, faces a November 2023 maturity on its $120 million revolver. It had borrowed $42 million under the credit line as of Sept. 30, according to regulatory filings.
LanzaTech Founder to Take on Advisory Role to Accelerate Extension of Core Technology
LanzaTech NZ, Inc., an innovative Carbon Capture and Transformation company that transforms waste carbon into materials such as sustainable fuels, fabrics, packaging, and other products that people use in their daily lives, announced today that the company’s Co-Founder, Dr. Sean Simpson, will transition to an advisory role, to support development and delivery of new strategic projects.
In early 2022, the company announced its intention to go public with special purpose acquisition company, AMCI Acquisition Corp. II (Nasdaq: AMCI). As the company embarks on this next stage of growth, Sean will advise LanzaTech CEO, Dr. Jennifer Holmgren, on ways to further develop the core platform and how it can be extended to multiple new sectors.
SEC Charges Former SPAC CFO for Orchestrating $5 Million Fraud Scheme
The Securities and Exchange Commission today announced fraud charges against Cooper J. Morgenthau, the former CFO of African Gold Acquisition Corp., a SPAC or special purpose acquisition company, for orchestrating a scheme in which he stole more than $5 million from the company and from investors in two other SPACs that he incorporated.
The SEC’s complaint alleges that, from June 2021 through July 2022, Morgenthau embezzled money from African Gold and stole funds from another SPAC series called Strategic Metals Acquisition Corp. I and II to pay for his personal expenses and to trade in crypto assets and other securities.
READFanDuel, Fanatics Could Be Among 2023’s Hottest IPOs
Owing to weak market conditions, there was an initial public offering (IPO) slump in 2022, but expectations are in place for a 2022 rebound.
If that scenario materializes, the gaming space could be a driver of the resurgence, potentially on the backs of FanDuel and Fanatics, which are easily two of the most widely anticipated IPOs regardless of industry.
Following a bumper crop of IPOs in 2021, last year’s field of 71 deals that raised at least $50 million brought in just $7.7 billion — a 95% year-over-decline. Fizzled transactions among special purpose acquisition companies, including several in the gaming space, plagued the IPO market in 2022.
READEx-CFO pleads guilty to stealing from SPACs to trade meme stocks, cryptocurrencies
A former chief financial officer of multiple special purpose acquisition companies has pleaded guilty to embezzling more than $5 million from them, and losing almost all of it trading meme stocks and cryptocurrencies.
Cooper Morgenthau, 35, of Fernandina Beach, Florida, pleaded guilty to one count of wire fraud on Tuesday before U.S. District Judge Paul Engelmayer in Manhattan federal court.
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