Morning Roundup: December 14, 2023


Morning Roundup: December 14, 2023

At the SPAC of Dawn

A broad range of de-SPACs benefited from the sudden swing to green yesterday as Fed Chairman Jerome Powell gave the first hint of rate cuts on the horizon.

The biggest gainers were those who have the most lost ground to make up, however. Smart glass-maker View (NASDAQ:VIEW) led all de-SPACs with a one-day gain yesterday of +65%, but it would need many more days like that to return to the valuation in its 2021 deal with CF II as it is now trading at a stock-split adjusted price of $0.07.

Lanvin Group (NYSE:LANV) is in a similar boat in that the luxury apparel retailer gained +23.5% on the day, but this rose it to a price of $3.85 on the one-year anniversary of closing its combination with Primavera.

But, it was also a good day for the recent SPAC success stories. Logistics automation firm Symbotic (NASDAQ:SYM) jumped +3% on the day to $50.44 and rare earth miner MP Materials (NYSE:MP) received a +7.7% spike to $16.80 with both still running in the pre-market. They previously combined with SVF 3 and Fortress Value, respectively.

Deals and Funding

  • Digital World (NASDAQ:DWAC) updated the ongoing reduction of its PIPE to note that between November 2 and November 20, investors canceled $17.5 million of PIPE commitments, shrinking the $1 billion PIPE by $484.5 million so far.

News and Rumors

  • PR: Latam Logistic Properties, which has a pending combination with two (NYSE:TWOA), sold the 289,010-square-foot Warehouse 500A in Colombia for undisclosed compensation.
  • PR: Chris Lundell will take over as CEO of Complete Solaria (NASDAQ:CSLR), replacing Will Anderson in the post five months after the company closed its combination with Freedom 1.
  • PR: Bleuacacia Ltd. (NASDAQ:BLEU) noted in an 8-K that it has received and is considering offerings to buy out its sponsor economics, which would change the control of the SPAC.

Non-Redemption Agreements and Forward Purchase Agreements

  • Nabors Energy Transition (NYSE:NETC) has signed an agreement by which Capital Airport Group will expand its backstop to $7 million from $5 million by buying a $2 million more in Nabors shares that had been tendered for redemption. In return, it will receive an additional 129,911 shares in Nabors’ target Vast at close.
  • 7GC & Co. Holdings (NASDAQ:VII) has signed a non-binding term sheet with Yorkville Advisors and affiliates to support its combination with Banzai International with a standby equity purchase agreement for up to $100 million of 7GC shares. Each purchase will be capped at the greater of 500,000 shares or the average daily volume of the stock over the previous five days and will be made for 95% of the day’s VWAP price of the stock or 96% of the three days’ prior. 7GC will also terminate an earlier share purchase agreement with GEM Global Yield. GEM will still receive a warrant to purchase 3% of Banzai’s equity interests and will provide $2 million in convertible debt.
  • Integral Acquisition Corporation 1 (NASDAQ:INTE), Carnegie Park Capital and Crescent Park mutually terminated the forward purchase agreements from the SPAC’s IPO. Under the FPA, the parties agreed to purchase up to 2,500,000 shares in the case of Crescent Park and up to 500,000 shares in the case of Carnegie Park, at $10.00 per share for gross proceeds up to $30 million.