Morning Roundup: December 4, 2023


Morning Roundup: December 4, 2023

At the SPAC of Dawn

Although cryptocurrencies and SPACs are not directly related in any way beyond the 11 announced and completed deals in the space, the two have coincidentally seen their stars rise and fall virtually in concert over the past few years.

It may be encouraging therefore that Bitcoin briefly crossed above $42,000 over the weekend and still sits at its highest price in nearly two years. That’s a good omen for the four SPACs currently working to close crypto combinations – Global Blockchain (NASDAQ:GBBK), Arisz (NASDAQ:ARIZ), Thunder Bridge IV (NASDAQ:THCP) and Adit EdTech (NYSE:ADEX).

But it’s perhaps better for the two still searching in that domain and those seeking a combination in a growth sector more broadly. Regardless of how well earned SPAC’s reputation for risk is, an increase in risk appetite in the market is a good indicator for SPACs in 2024 if not before.

Deals and Funding

Non-Redemption Agreements

  • Pearl Holdings (NASDAQ:PRLH) and its sponsor intend to enter into customary non-redemption agreements with certain existing shareholders with respect to up to 2,500,000 Class A Ordinary Shares. In addition, the sponsor intends to convert an aggregate of 2,500,000 of its Class B ordinary shares into Class A Ordinary Shares.
  • Dune Acquisition Corporation (NASDAQ:DUNE) has signed on to a forward-purchase agreement with Meteora Capital Partners covering up to 950,000 shares. Meteora will be prepaid for such purchases and will receive up to 80,000 additional shares. It updated that it has about $11.9 million in its trust as of December 1.
  • Clean Earth (NASDAQ:CLIN) has signed a forward purchase agreement (FPA) with Meteora Capital Partners covering up to 2,796,554 Class A ordinary shares. The FPA provides for a prepayment shortfall in an amount equal to $1 million. Clean Earth shareholders are set to vote on its business combination with Alternus Energy Group in a meeting today at 10:00 a.m. ET.

Subscription Agreements

  • SportsMap Tech (NASDAQ:SMAP) entered into a subscription agreement with various investors, pursuant to which it will issue and sell an aggregate of $6.805 million in convertible promissory notes. Of the $6.805 million in notes, $1.48 million will be issued in exchange for cancellation of an equal amount of existing SportsMap promissory notes, $1 million will be rolled over from an existing ICI Convertible Note, and $4.3 million will be cash proceeds to the company.

Scheduling Notes

  • Dune also reconvened and then further adjourned, without conducting any other business, the special meeting relating to its previously announced proposed business combination with Global Hydrogen Energy. The meeting has been further adjourned until December 4 at 10:00 a.m., New York City time.