China Yunhong Holdings Files for a $50M SPAC IPO

Last Friday, there was another new SPAC filing with the addition of China Yunhong Holdings (ZGYHU), a $50 million SPAC IPO focused on the consumer and lifestyle sectors in Asia. Mr. Yubao Li is acting as Chief Executive Officer and Chairman, however, he is currently the only team member listed. Mr. Li is currently the acting president of the Hubei Academy of Science and Technology. He is also serving as a director or officer at multiple solar and agriculture companies in addition to being a director at the Photoproteins Research Centre at China’s Academy of Management Science, a research institute located in Beijing.

The structure seen in Yunhong’s unit is interesting for an Asia-focused SPAC. There is no right included in the unit, only a warrant. Since there is no right in the unit, Yunhong is offering a full warrant instead of the 1 warrant for 1/2 share that is typically seen in these deals. Additionally, a Crescent term has not been included and the warrant call trigger is $18.00. The typical trigger for smaller Asia-focused deals similar to Yunhong is $16.50. The $18.00 trigger is similar to most larger SPACs, and with a longer duration than most small Asia-focused SPACs at 18 months, it will be interesting to see how investors react.

While Yunhong does not have a full management team yet, the strength of the team will likely feel similar to most other SPACs with this size and focus. The team does not have experience with blank check companies but they are well connected and have experience in other industries. Some of the terms for Yunhong would be considered unfavorable for certain investors, but the sheer number of deals successfully pricing and the current investment environment, combined with the small size of the deal, make it seem as though they should be able to get it sold even if there is some pushback.

Summary of terms below: