Morning Roundup: December 28, 2023


Morning Roundup: December 28, 2023

At the SPAC of Dawn

On the docket today, two SPACs will hold extension meetings while ShoulderUp Technology is set to have a shareholder meeting to elect new board members and confirm an auditor.

Friday continues to be set to finish the year with a bang as adjournments have expanded its vote count to 15.

The final days of 2023 are also set to provide new data points for both SPACs and traditional IPOs however. Iron Horse (NASDAQ:IROHU) joined the 2023 numbers as it priced its IPO yesterday and Blue Room (NASDAQ:IBLUU) also got effective.

Alongside them, regional bank NB Bancorp (NASDAQ:NBBK) is set to begin trading today through a traditional IPO, while energy firm Prairie Operating Co. (NASDAQ:PROP) is expected to do the same, albeit through an uplist. Their performance in the final two trading days of the year will provide the last notches on the measuring stick between SPACs and other new issuance for 2023.

Deals and Funding

  • AIB Acquisition Corporation (NASDAQ:AIB) has entered into a definitive agreement to combine with Hong Kong-based logistics service provider PSI Group at an enterprise value of $200 million.
  • Berenson Acquisition Corp. I (NYSE:BACA) has secured a share purchase agreement of up to $260 million from ACM ARRT N whereby the investor will purchase 1,000,000 Series A preferred shares, which will each convert to 26 common shares at close. ACM ARRT N may also subscribe to a PIPE at $6 per share and will be rewarded at the agreement’s valuation date with $1 in cash for each PIPE share it purchased and $2 for each share it still holds through the share purchase agreement. The investor will be issued 500,000 shares for participating.

News and Rumors

  • Bilyonaryo: DoubleDragon is considering a SPAC deal for its Singapore-based Hotel101 hospitality platform as it looks to expand throughout the region.
  • Verde Valley Independent: Parts iD (NYSE:ID), which combined with Legacy in November 2020, has filed for Chapter 11 bankruptcy.
  • GVS: Terran Orbital (NYSE:LLAP), Tailwind Two‘s de-SPAC, is on the verge of receiving a significant payment from its largest customer, Rivada Space Networks, to support the construction of a mega-constellation. The cost of the project is estimated at $2.4 billion, which currently represents the majority of Terran’s backlog.
  • BloombergTax: The SEC has urged recent de-SPACs to consult with the agency as several, including Envoy Medical, Electriq Power and Ocean BioMedical made errors in statements in accounting for backstop financing.

Scheduling Notes

  • Revelstone Capital (NASDAQ:RCAC) adjourned its vote to approve its combination with Set Jet until noon ET, December 29.

  • two (NYSE:TWOA) has also pushed an extension vote to noon ET, December 29. Shareholders are to consider giving the SPAC the ability to extend to up to July 1, 2024 in exchange for monthly contributions to its trust.