Last week featured five announced SPAC deals. The week also had earnings from several well-known former SPACs. Here is a look back at the week that was SPACs for deals, rumors and headline news all covered on Benzinga’s “SPACs Attack.”
Listen to this week's SPACs Attack.
SPAC Deals:
Ecommerce company Boxed announced a SPAC merger with Seven Oaks Acquisition Corp SVOK. Boxed offers bulk consumables to businesses and households using an end-to-end artificial intelligence-driven platform.
Boxed is working on a software-as-a-service (SaaS) offering for future growth, including a signed SaaS partnership with one of Asia’s largest retail conglomerates Aeon Group. The company is forecasting revenue of $212 million for fiscal 2021, up 14% year-over-year.
Solid-state battery company Solid Power announced a SPAC merger with Decarbonization Plus Acquisition Corporation III DCRC valuing the company at $1.2 billion.
Investors in Solid Power include Ford Motor Company F, BMW BMWYY, Samsung and Hyundai Motor Company GDR HYMTF. Solid-state batteries being developed by the company are expected to have a range of 500 miles and provide cheaper costs to automotive companies.
Ford and BMW have an existing joint development to use Solid Power batteries in future electric vehicles.
5G and renewable infrastructure service provider QualTek announced a SPAC merger with Roth CH Acquisition III Co ROCR valuing the company at $829 million.
Founded in 2012, QualTek provides services to companies in the 5G, telecom and renewable energy sectors in North America. Services include fiber-optic infrastructure, program management, engineering, permitting, testing, emergency restoration, and electrical services.
The company expects to grow revenue with increases in federal and municipal infrastructure spending.
Radiation technology company Mirion Technologies announced a SPAC merger with GS Acquisition Holdings Corp II GSAH valuing the company at $2.5 billion. Mirion is a leader in radiation hardware, software and alignment for hospitals, urgent care clinics, dental offices, veterinarians and nuclear power plants. Mirion has a market share leading position in 14 of 17 categories it operates in.
Seventy percent of the company’s revenue comes from replacement, maintenance and recurring items.
Revenue for Mirion was $651 million in fiscal 2020 and the company forecasts revenue to hit $689 million in fiscal 2021.
Agriculture technology company Local Bounti announced a SPAC deal with Leo Holdings III Corp LIII valuing the company at $1.1 billion. Strategic partner and investor Cargill is part of the SPAC merger investment and will provide additional funds for the company.
Local Bounti operates in the controlled environment agriculture segment, growing cut lettuce, living lettuce and living herbs with indoor year-round farming using less water, zero pesticides and providing cost-competitive produce to consumers.
Related Link: 10 SPACs And Former SPACs That Could Be Short Squeeze Candidates: Clover, Nikola And More
SPAC Rumors:
Thrasio could be valued at $2 billion in a SPAC merger with Churchill Capital V Corp CCV, according to Bloomberg. The company acquires new sellers on the third-party marketplace of Amazon.com, Inc. AMZN.
Satellite launch company Virgin Orbit is rumored to be merging with NextGen Acquisition II Corp NGCA. A deal could value the company owned by Sir Richard Branson at $3 billion, according to Sky News.
Virgin Orbit was spun off of Virgin Galactic Holdings Inc SPCE four years ago.
The company launched ten small satellites into space in January and is scheduled to launch more by the end of June as one of only two commercial small satellite operators to hit the milestone.
Indoor and urban farming company Infarm could announce a merger with Kernel Group Holdings Inc KRNL, according to Bloomberg.
Headline News:
One of the big movers of the week was Arrival SA ARVL, which found itself mentioned as a short squeeze or low float name from retail traders. The company also announced in a filing that it will be calling the warrants of the stock, sending shares back down to close out the week.
Clever Leaves Holdings CLVR announced a supply agreement with CBD Life Holding, marking the company’s first commercial agreement in the Mexican market. CBD Life Holdings has more than 18,000 points of sale in Mexico.
Draftkings Inc DKNG was the target of a short report from Hindenburg Research calling the company “A $21 billion SPAC betting it can hide its black market operations.”
The report targeted SBTech, an owned company of DraftKings that was part of the three-way SPAC merger. Accusations included SBTech being linked to the black market, money laundering and organized crime. SBTech made up 25% of the company revenue at the time of the SPAC merger.
Rocket Lab, set to merge with Vector Acquisition Corp VACQ, announced it won a NASA award contract for a mission to Mars in 2024. The contract will undergo further reviews and could be part of a larger announced deal by the end of July. Rocket Lab has existing contracts to fly missions to Venus and orbit the Moon.
Pershing Square Tontine Holdings Ltd PSTH, which announced plans to acquire 10% of Universal Music Group from Vivendi SE VIVHY could face a struggle to get the votes needed on June 22 for the deal. Several Vivendi shareholders are objecting to the deal favoring a more favorable tax spinoff instead. Dan Loeb’s Third Point has built up a stake in Vivendi and did not announce if it opposes the PSTH transaction yet.
Lordstown Motors Corp RIDE shares plunged after the company’s CEO Steve Burns and chief financial officer both resigned from the company. Lordstown admitted to inaccurate pre-order disclosures.
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: SIGNA Sports United SPAC $YAC
Tuesday: 3 SPAC ETFs
Wednesday: Fast Chargers SPAC EVgo $CLII
Thursday: SPAC BATTLE Who Will Win?
Friday: Who Will Win The Best & Worst SPAC?
Disclosure: Author is long shares SPCE.
(Photo by freestocks on Unsplash)
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