Morning Roundup: October 25, 2023


Morning Roundup: October 25, 2023

At the SPAC of Dawn

Good morning! Watch this space moving forward as a roundup of evening filings as well as news nuggets to nibble on beside your morning coffee.

This morning brings news that a fresh airline SPAC deal may be brewing, following on the announcement of the first of its type between FlyBondi and Integral 1 (NASDAQ:INTE) last Friday.

As discussed both at the time and through a review of flight de-SPACs overall, there are reasons to view the airline business as an attractive landing spot for SPAC capital. But, earnings season may provide a better gauge of which way the winds are blowing in the industry.

Budget carrier Spirit Airlines (NYSE:SAVE) reports its earnings today as does Boeing (NYSE:BA) further up the supply chain. Southwest (NYSE:LUV), meanwhile, reports tomorrow.

Both Spirit and Southwest have had some bumpy rides of late and are down year-to-date, but their top line figures should provide some clarity on the state of air travel as airlines have spent the post-pandemic recovery period sorting through inventory and optimizing destinations.

As a more diversified company, Boeing could show signs in multiple directions. It also generates a significant portion of its revenue from the defense and aerospace sectors.

But, despite growing global tensions and a war in Europe, Boeing’s sales of commercial aircraft still well outpaced its deliveries to the defense sector in the first half of the year, representing $15.5 billion of the group’s $37.6 billion in first half revenue as compared to $12.7 billion coming from defense.

Deals and Amendments

  • Nabors Energy Transition (NASDAQ:NETC) and Vast amended its business combination to issue 350,000 Vast Ordinary Shares to Nabors Lux pursuant to a backstop agreement at close in exchange for it purchasing up to $15 million shares at $10.20 per share. The two sides will reduce the SPAC sponsor’s earnout by 500,000 shares, leaving 1,500,000 remaining. The minimum cash condition of $50.0 million was also waived.
  • ABRI SPAC I (NASDAQ:ASPA) shareholders approved its combination with digital ad firm DLQ at a shareholder meeting October 23, but saw 639,963 shares redeemed, leaving it with 42,185 shares remaining.

News and Rumors

  • Indian Express: AirAsia’s parent company has reportedly come to a deal with Aetherium Acquisition Corp. (NASDAQ:GMFI) to list several subsidiaries in a merger and is working to raise $1 billion in debt and equity to support the move.
  • Precision Medicine Online: The FDA has granted NKGen Biotech (NASDAQ:NKGN) permission to start U.S. trials of its drug’s effectiveness with Alzheimer’s cell therapy, three weeks after it completed its merger with Graf Acquisition Corp. IV.

Non-Redemption Agreements

  • Battery Future Acquisition Corp. (NYSE:BFAC) entered into non-redemption agreements with investors ensuring 750,000 shares will not be redeemed at its upcoming extension vote. The SPAC’s sponsor has agreed to transfer 150,000 promote shares to these investors in connection with the move and it estimates its pro rata trust value at the time of the special meeting to be $10.85.

Scheduling Notes