Morning Roundup: November 3, 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.

The end of the week is bringing a raft of de-SPAC earnings releases, but although the market is picking back up, the tune from this crop companies is likely to be sung in a minor key.

Hostess (NASDAQ:TWNK) has the most to be pleased with, regardless of the specifics of its last quarter’s performance. The budget confectionery maker has traded up from its 2016 merger with Gores I to $33.34 at close yesterday.

But, it has already agreed to be acquired by its peer Smucker (NYSE:SJM) for a cash and stock equivalent of $34.25. So, however its quarterly performance shakes out, that will just be the artificially flavored cherry on top.

The other four de-SPACs reporting today likely have more harrowing tales to tell. Indoor farming venture AppHarvest (OTC:APPHQ) is still looking to reorganize out of bankruptcy, crypto computing firm Core Scientific (OTC:CORZQ) is doing the same, but has maintained a productive holding pattern as it works through Chapter 11 and recently received new investments.

EV bus-maker Proterra (OTC:PTRAQ) is working on the same plan through bankruptcy and may benefit from new federal support. Tattooed Chef (OTC:TTCFQ), meanwhile, appears to have transitioned its Chapter 11 in to a full sale.

Funding

• Deep Medicine Acquisition Corp. (NASDAQ:DMAQ), which announced a combination with golf simulator company TruGolf, executed a loan agreement with Greentree Financial Group, Inc. and Finuvia, LLC, granting it up to $8 million in convertible notes and warrants to purchase 727,273 shares of Class A common stock.

News and Rumors

• PV Magazine: H2B2 Electrolysis Technologies has completed the first phase of development for its green hydrogen plant in Fresno, California, and it is now operational with an output of one ton of hydrogen per day. H2B2 is working to close a combination with RMG III (NASDAQ:RMGC) announced in May.
• PR: Sky Harbour (NYSE:SKYH), which combined with Yellowstone in January 2022, closed a private equity placement with Altai Capital that raised $42.8 million from the sale of 6,586,154 Class A shares and 1,141,600 warrants. Another Altai affiliate has the right to purchase $15 million more of such securities for the next 15 days.
• BloombergTax: Lion Electric (NYSE:LEV) shareholders have filed a lawsuit in Delaware against the sponsor of Northern Genesis, which took the company public in 2021 with allegedly misleading prospects.