Happy Sunday, Friends!Â
This last week was packed with deals, amendments, and merger breakups. A SPAC is set to merge with an electric utility firm, and a blank-cheque firm is taking a critical metals supply chain-focused firm. Also, Sam Altman’s SPAC surges as it nears a deal, and a SPAC terminates a merger with a hydrogen energy firm. Read on to find out the latest about all things SPACs.Â
SPAC Deals AnnouncedÂ
$CCTS Will Take VivoPower Subsidiary Tembo Public in $838 Million Deal
Tembo, an electric utility vehicle company under VivoPower International, is set to merge with SPAC Cactus Acquisition 1, in a deal valuing the firm at $838 million.Â
Tembo designs electric utility vehicles for sectors like mining, agriculture, energy, defense, law enforcement, government, humanitarian efforts, and game safaris, catering specifically to fleet owners.
VivoPower specializes in sustainable energy, offering electric solutions for customized fleet applications, battery systems, microgrids, solar, and critical power services aimed at decarbonization.Â
Cactus 1 raised $126.5 million through its Initial Public Offering two years ago, but redemptions have left the SPAC with $25 million in cash. The SPAC plans to issue 83.8 million shares at $10 each for Tembo shares, valuing the company at a pre-transaction equity sum of $838 million.
VivoPower will issue dividends to shareholders with a record date of 30th April and 30th June, with a stipulation of lock-up for a further six months from the record date. The deal is expected to close in August, post which the combined company will list on the Nasdaq stock exchange. Cactus I has until November to close a deal before liquidating.Â
$WTMA Files to Take Evolution Metals Public
SPAC Welsbach Technology Metals Acquisition has filed to merge with Evolution Metals, which wants to address the worldwide critical mineral supply chain crisis.
Welsbach and Evolution Metals had previously signed a letter of intent to merge in January. The company is creating advanced smart factory technology with AI and robotics to improve the production of EV batteries and materials, making it cheaper, higher quality, and environmentally friendly.
The company is also developing technology that enhances battery charging for electric vehicles and energy storage systems. After the transaction is complete, it aims to produce over 10,000 tons of magnets and battery metals annually.
Welsbach Technology previously raised $75 million through a December 2021 Initial Public Offering, targeting businesses focused on the metals and energy transition materials industry.
Last October, the SPAC's shareholders agreed to extend the deadline to June 30 without any extra funding to the trust. In June, Welsbach and WaveTech Group mutually decided to terminate their previously announced merger.
De-SPAC NewsÂ
$GOEV Spent Twice its Revenue on CEO'S Private Jet in 2023
EV Startup Canoo Revealed that it Spent double its annual 2023 revenue on reimbursing CEO Tony Aquila’s private jet.Â
Canoo reported its 2023 fourth-quarter and full-year earnings last week, revealing a significant cash burn in its effort to increase the production of commercial electric vehicles. The company issued a "going concern" warning, which has persisted since 2022.
In 2023, the company reported $886,000 in revenue, delivering 22 vehicles to clients including NASA and Oklahoma, and nearly halved its operational loss to $267 million from $506 million in 2022.Â
To put things into perspective, the company paid $1.7 million in 2023 to rent the CEO’s private jet from Aquila Family Ventures, owned by the CEO, which is double its revenue for the year.
Additionally, Canoo paid Aquila Family Ventures $1.7 million in 2023 for shared services at its Texas office, following payments of $1.1 million in 2022 and $500,000 in 2021.
SPAC NewsÂ
Sam Altman’s $ALCC Surges 22% as Oklo Deal Nears
Investors are flocking to the SPAC led by Sam Altman and Michael Klein, which is taking the advanced nuclear systems developer Oklo public, making it the best-performing SPAC on the market.
In the last two weeks, AltC Acquisition Corp surged by 22%, trading at a significant premium over its actual value. The increase in AltC's stock value has been fueled by recent filings with US regulators and Oklo executives promoting the company through podcasts and events like South By Southwest in Austin.
In October, investors redeemed over 40% of the SPAC's 50 million shares for cash during an extension vote.Â
AltC has recently updated its filings with the SEC, revealing an agreement between Oklo and Equinix, where Equinix can buy power from Oklo and has already paid $25 million in advance.
Diamondback Energy, a major oil producer in Texas, also intends to use Oklo's small reactors for its power needs, as confirmed by its CEO. Oklo is developing advanced fission reactors for global clean energy, with Sam Altman supporting it since 2015 as chairman.Â
SPAC Deal Updates
$RMGC Terminates Merger With H2B2 Electrolysis
RMG Acquisition III ended its merger with H2B2 Electrolysis because the parties didn’t complete the deal by the March 31st deadline.
Founded in 2016, H2B2 specializes in hydrogen energy, offering everything from production and transportation equipment to full-service solutions, serving sectors like industrial, energy, transportation, and residential.
The company has grown its green energy operations globally, including in Europe, the US, Latin America, Asia, and the Middle East, and was chosen for the IPCEI Hy2Tech program, receiving up to €25 million in grants from the European Commission.
H2B2 anticipated a net loss of $16.6 million on $15.8 million in revenue for fiscal 2023 but has projected a significant revenue increase to $206.8 million by 2025. In May 2023, the parties announced a closing purchase price of $750 million for the deal, with potential adjustments.
RMG III, after raising $420 million in its February 2021 IPO, had just under $6.4 million left by January 30, leading to a December agreement to lower the minimum investment from $40 million to $30 million.Â
Meme of the Day
RIP [Insert Regional Bank]
The HeadlinesÂ
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NewGenIvf and $ASCA Close Business Combination