SPACs Attack Recap: 6 SPAC Deals, SPAC Rumors And Headline News From Last Week

Last week featured six announced SPAC deals. The week also had earnings from several well-known former SPACs.

Here's a look back at the week that was SPACs for deals, rumors and headline news all covered on Benzinga’s “SPACs Attack.

SPAC Deals

Financial industry savings and investing app Acorns Group is going public in a SPAC merger with Pioneer Merger Corp PACX valuing the company at $2.2 billion. Investors in Acorns Group include PayPal Holdings PYPL, BlackRock Inc BLK, Ashton Kutcher, Jennifer Lopez and Dwayne “The Rock” Johnson.

Acorns in the largest subscription-based service for financial services with more than four million members. The company offers subscription based pricing ranging from $1 to $5 a month. The company plans on expanding its pricing tiers, offering portfolio customization and exploring strategic M&A to grow going forward. Acorns had revenue of $71 million in 2020 and is guiding for revenue to hit $126 million in fiscal 2021.

Biotech company eFFECTOR Therapeutics will merge with Locust Walk Acquisition Corp LWAC in a deal valuing the company at $419 million. Pfizer Inc PFE is a collaborating partner with eFFECTOR had also participated in the PIPE on the SPAC deal. eFFECTOR is focused on selective translation regulation inhibitors to treat cancer. The company expects to report topline data from a Phase 2b KICKSTART trial of lead candidate tomivorsertib for the treatment of metastatic non-small cell lung cancer soon.

P3 Health Partners is going public with Foresight Acquisition Corp FORE. The deal values the health management company at $2.3 billion. P3 is dedicated to transforming health care for patients, providers and payors using a physician-affiliated model for Medicare Advantage members. P3 operates in four states and covers 11 markets. The company plans to add three to five new markets each year to increase patient growth. P3 is forecasting revenue of $644 million for fiscal 2021, up 31% year over year.

DC fast charging manufacturing company Tritium is going public in a SPAC merger with Decarbonization Plus Acquisition Corporation II DCRN that values the company at $1.2 billion. Trtium has provided 2.7 million charging sessions in its lifetime and sold more than 4,400 DCFC chargers.

Tritium says it's the only pure-play DC fast charging the manufacturing company with a global sales and support reach, covering 41 countries and four continents. Charging stations from Tritium have a smaller footprint and lower total cost of ownership than competitors. The company had revenue of $59 million in fiscal 2020 and is expecting revenue to hit $84 million in fiscal 2021.

Valens Semiconductor announced a SPAC merger with PTK Acquisition Corp PTK valuing the company at $1.16 billion. Valens has shipped over 25 million chips worldwide. The company works with several automotive customers and key players in the audio-video industry. Valens is working on creating chips to help automotive companies with autonomous driving.

Canadian steel company Algoma Steel announced a SPAC merger with Legato Merger Corp LEGO valuing the company at $1.7 billion. Algoma Steel is a manufacturer of hot and cold steel products that produces steel for industries like automotive, shipbuilding, energy, mining, defense and manufacturing. Algoma produces an estimated 2.8 million tons of steel per year and is a key supplier to customers in Canada and the Midwest region of the U.S.

SPAC Rumors:

Environmentally friendly cryptocurrency platform Chia Project is in talks to go public in a traditional IPO or SPAC merger later in 2021, according to Bloomberg.

Artificial intelligence company BigBear is in talks to go public with SPAC GigCapital4 GIG, according to Bloomberg.

Babylon, a telehealth platform, is rumored to be going public with Alkuri Global Acquisition Corp KURI. A SPAC merger could value Babylon at $3.5 billion.

Related Link: Exclusive: Beachbody CEO Talks At Home Workouts Growth, Potential Partnership On SPACS Attack

Headline News

A merger between fintech company SoFi and Social Capital Hedosophia Holdings Corp V IPOE was approved by shareholders. Shares will begin trading on the Nasdaq as ticker SOFI on June 1.

Matterport, which is going public via Gores Holdings VI Inc GHVI, announced first-quarter financial results. Revenue of $26.9 million was up 108% year over year for Matterport. The company reported annual recurring revenue of $55.2 million. Subscribers totaled 331,000 in the first quarter, up over 500% year over year. The company announced expansion into South Africa and the Middle East.

Noted SPAC investor Chamath Palihapitiya issued an op-ed in Bloomberg that called for more regulation and oversight in the SPAC market. Palihapitiya called for regulators to push for sponsors to include more of their own principal when underwriting deals. He is also calling for information of which companies bid on private companies and how much they were willing to pay to be publicly disclosed. Another change Palihapitiya called for is the PIPE investors on a SPAC deal having the power to change the terms of the deal if the market changes.

Shares of CarLotz Inc LOTZ fell after the company disclosed a leading vehicle sourcing partner paused consignments to the company. The partner represented 60% of all cars sold in the first three months of 2021. The partner represented less than 50% of cars sold by CarLotz in the second quarter at the time of the news.

CarLotz lowered its full year guidance for cars sold to be 13,000 to 15,000, down from a prior range of 18,000 to 20,000 units. The company lowered its revenue forecast for the fiscal year from a prior range of $335 million to $375 million to a range of $272 million to $317 million.

Lordstown Motors RIDE shares fell after the company said it may not meet its original full year unit guidance and capital is needed by the company. The company sees higher costs for parts, equipment, shipping and third party engineering resources. Lordstown Motors said it will only be able to hit 50% of its prior expectations for the Endurance electric pickup.

Shares of Virgin Galactic SPCE traded higher during the week after the company completed a successful flight to space in the previous weekend. The successful flight puts the company another step closer to being able to take passengers to space.

Be sure to tune into "SPACs Attack," Monday through Friday, 11 a.m. EST. Here are the links to the past week’s shows.

Monday: Upcoming Earnings To Watch?

Tuesday: The Power of Vascular Innovation SPAC

Wednesday: The Spotify of the Middle East $VMAC $SPOT

Thursday: Why Jam City Has Massive Potential $XPOA

Friday: Beachbody SPAC Takeover $FRX

Posted In: AcornsBloombergChamath PalihapitiyaSPACSPACsSPACs AttackM&ANewsPenny StocksSmall CapIPOs

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