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Morning SPAC News Roundup: January 24, 2024


Morning SPAC News Roundup: January 24, 2024

At the SPAC of Dawn

The SEC has voted 3-2 to approve new rules for SPACs in a meeting that was occasionally adversarial with Commissioners Hester Peirce and Mark Uyeda dissenting against the proposal. Peirce and  pointed out ways in which the rules could increase costs for SPACs and target companies while posing some new questions for SPACs currently searching.

One important distinction between the final rules proposal and earlier draft discussion is that SPAC underwriters will not bear liability for a target’s future projections, however, forward-looking statements by targets will not be shielded by safe-harbor protections.

Tune in tomorrow, January 25, as SPACInsider founder Kristi Marvin breaks down the new rule and its implications in a webinar with Derek Dostal, a partner at Davis Polk & Wardwell LLP, Doug Ellenoff, partner at Ellenoff Grossman & Schole LLP, and Christian Nagler, partner at Kirkland & Ellis LLP.


News and Rumors

  • PR: Bitcoin-miner Core Scientific announced this week that it had emerged from Chapter 11 bankruptcy and will re-list today with its shares trading on the Nasdaq under the symbol “CORZ” and its tranche 1 and tranche 2 warrants trading as “CORZW” and “CORZZ”, respectively. Slumping crypto prices pushed the company over the edge in the years following its 2022 combination with Power & Digital, but it nonetheless produced 13,762 bitcoins in 2023 (worth $549 million at current prices) and 5,512 (worth $220 million) on behalf of clients, some of which share mining proceeds.
  • Bloomberg: Options traders are placing bets that Digital World (NASDAQ:DWAC) will double in price again in the coming days as excitement around election season heats up. Digital World has a long pending combination with Trump Media & Technology Group.

Non-Redemption Agreements

  • Maquia Capital (NASDAQ:MAQC) has launched negotiations with third parties for a potential non-redemption agreement ahead of an upcoming extension vote. The SPAC has offered to transfer to non-redeemers the equivalent of 2.5% of the shares they subject to the agreement each month.

Scheduling Notes