Morning SPAC News Roundup: January 26, 2024

At the SPAC of Dawn

The Fed got more evidence of cooling inflation this morning as the Commerce Department’s personal consumption expenditures (PCE) price index came in just under expectations for December.

It showed a monthly increase in prices of 0.2%, which was in line with many economist expectations, but the annual rate declined to 2.9%. It had been sitting at 3.2% coming out of November. The new data hasn’t moved the market much in the opening hour, but anything that might bring an eventual rate cut sooner on the calendar is a positive for SPACs.

The news comes at the end of a quiet week in direct corporate actions by SPACs as many may have been waiting to see if the SEC’s new rule announced this week would create any market wind changes. The action should kick back up next week with 18 votes on the docket.

News and Rumors

• PR: The SEC has settled charges against Northern Star Investment Corp. II (NYSE:NSTB) for $1.5 million, having alleged that the SPAC had improper discussions with its target company before IPOing in January 2021. Northern Star II announced a deal with Apex in February 2021, but terminated it nine months later.
• WSJ: Buzzfeed (NASDAQ:BZFD), which completed its combination with 890 5th Avenue Partners, Inc. in December 2021, is now trying to sell its food sites Tasty and First We Feast.
• Miami Herald: Digital World (NASDAQ:DWAC) has already reached a settlement with the SEC over insider trading concerns, but prosecutors continue to pursue charges against those that may have benefited, now investigating a Russian-American banker linked to the porn industry.

Scheduling Notes

• Constellation Acquisition Corp I (OTCQX:CSTAF) adjourned its extension meeting until January 29 at 12:00 p.m., Eastern Time.
• Jaws Mustang Acquisition Corporation (NYSE:JWSM) adjourned its extension vote until 10:30 am ET, February 2.

Liquidations

• Northern Star Investment Corp. II (NYSE:NSTB)has determined to commence the process of liquidating its trust account. The SPAC anticipates the liquidation amount will be approximately $10.48 per public share, after which Northern Star II will remain trading as a shell.
• PepperLime Health Acquisition Corporation (NASDAQ:PEPL) will liquidate and will cease trading February 7.