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The Rundown - Your weekly SPAC Recap (12/25/23)
The last week was an eventful one for SPACs with several deal announcements, terminations, and liquidations. In all, five new deals were announced, with a potential deal emerging, and three SPACs liquidating. Read on to find out the latest about all things SPACs.
SPAC Deals Announced
$SCRM is Taking Lionsgate’s Studio Business Public
Lionsgate plans to spin off its studio unit, valued at $4.6 billion including debt, by merging with SPAC Screaming Eagle Acquisition Corp.
Lionsgate’s film and television assets include about 18,000 titles. With the merger, Lionsgate plans to separate its studio unit from Starz streaming and cable.
The merger is expected to generate gross proceeds of up to $350 million including the cash held in the SPAC trust and a PIPE of $175 million.
Lionsgate's studio unit saw a 21% revenue increase to $790 million last quarter. However, industry concerns persist due to recent Hollywood strikes, with the studio anticipating a $50 million impact over the current and next fiscal years.
Powermers Smart Industries Will Merge With $OCAX in $2 Billion Deal
Powermers Smart Industries, a maker of commercial transportation and industrial equipment, will go public through a merger with SPAC OCA Acquisition Corp, in a deal valuing the combined company at $2 billion.
New York-based Powermers holds patents related to the safety and performance of lithium-ion batteries and other energy storage devices.
PSI aims to revolutionize the industry with modern engineering, fleet management solutions, and a partner ecosystem that enhances R&D efficiency, cuts costs, and speeds up commercialization.
The merger, set to finalize in 2024, will result in the newly combined company operating as 'Powermers Smart Industries' and trading on Nasdaq with the ticker symbol "PSII".
AI Edge Solutions Firm Blaize Will Go Public Through $894 Million Merger With $BRKH
Full-stack AI solutions firm Blaize is set to go public through a merger with SPAC BurTech Acquisition Corp in a deal valuing the combined company at $894 million.
Blaize offers AI computing solutions across various markets like automotive, retail, and healthcare, which it estimates is a $70 billion opportunity.
The company has developed a full-stack programmable processor and low-code/no-code software platform for rapid AI deployment.
The company says that its processor architecture is optimized for edge AI processing, and delivers high performance with low power use and minimal latency, for efficient application development and deployment.
The deal is anticipated to generate gross proceeds of up to $71 million, including the cash held in the SPAC trust, and a $25 million convertible note investment from Burkhan Capital.
Potential SPAC Deals
$SLAM Signs LOI With Lynk Global to Fund Direct-to-Smartphone Satellites
Lynk Global aims to expand its smartphone connectivity network by going public on Nasdaq through a merger with Slam Corp, a SPAC headed by ex-baseball player Alex Rodriguez.
The Falls Church, Virginia-based company announced a non-binding agreement with Alex Rodriguez's SPAC to create a group anticipated to be valued at $800 million.
Lynk currently offers intermittent texting and low-bandwidth services in select Pacific regions through three satellites and partnerships with local mobile operators and plans to launch two more satellites next year on a SpaceX Falcon 9 rideshare mission to enhance coverage.
To achieve global service with 5,000 satellites and connect subscribers beyond the cell tower range, including in high-revenue areas like the U.S., Lynk requires additional funding, which it hopes to generate from the SPAC deal.
SPAC News
$JAQC Terminates Filament Health Merger, Will Liquidate
Canadian clinical‐stage psychedelic drug development company Filament Health said it had terminated a merger with SPAC Jupiter Acquisition Corporation.
Due to significant changes needed to meet Nasdaq listing requirements, the parties involved have chosen to not proceed with the transaction and have agreed to terminate it.
Filament is focused on developing natural psychedelic drug development, including substances used to treat disorders using its proprietary technology for discovering and delivering botanical psychedelic medicines.
Jupiter had previously raised $150 million through an August 2021 IPO targeting businesses focused on the consumer industry. The SPAC said it would redeem the shares outstanding on December 26th, with a per-share effective price of 10.34.
Meme of the Day
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The Headlines
Femco Steel Technology Will Go Public Through Merger With $LATG
Custom Health Will Merge With $baca In $185 Million Deal
$FSNB Will Liquidate After Terminating LOI With Hyperloop Transportation
$OHAA Will Liquidate on December 27th