Mapping New Territory
The Rundown - Your weekly SPAC Recap (04/28/24)
Happy Sunday, Friends!Â
The last week of SPACs was packed with activity including buyouts, amendments, and terminations. A digital mapping firm gets a boost with an acquisition by a Real Estate firm, and a Rare Earth mining-focused firm rejects a buyout from a SPAC. Also, a SPAC lowers the valuation of a deal with a biotech firm, and a UK-based blank-cheque firm terminates a deal with an engineering business. Read on to find out the latest about all things SPACs.Â
De-SPAC NewsÂ
$MTTR Being Acquired by Real Estate Giant for $1.6 Billion
Matterport has agreed to a cash-and-stock acquisition by its customer, CoStar, which operates real estate marketplaces, at $5.50 per share, valuing the company at approximately $1.6 billion.
The acquisition by CoStar is a positive development for Matterport, which has struggled, with its share price below $5 since August 2022 due to weak subscriber growth in a sluggish real estate market and broader economic downturn.
The company, which was founded in 2011 as part of Y Combinator’s Winter 2012 batch, quickly became known for its 3D imaging cameras and gained significant traction in real estate, despite competition from Cupix, Giraffe360, and Zillow 3D Home. The demand for digital twin technology, especially in real estate, has grown as the pandemic accelerated the shift from in-person to virtual property tours for both commercial and residential spaces.
CoStar, a real estate firm that operates platforms like Apartments.com, Homes.com, and LoopNet, has direct insights into the value Matterport can add for its users.
Matterport’s stock is now trading at $4.76/share, slightly below the deal value, indicating that the deal could run into regulatory roadblocks. Previously, CoStar’s attempt to acquire RentPath was derailed by an antitrust lawsuit by the FTC, with the company instead being bought by Redfin in 2021.Â
SPAC Deal Updates
American Rare Earths Rejects $400 Million Takeover from $PPYA
American Rare Earths announced it will not proceed with the sale of its subsidiary, Wyoming Rare, in an all-stock deal valued at $400 million with the Nasdaq-listed SPAC, Papaya Growth Opportunity.
Wyoming Rare owns the Halleck Creek rare earth project, one of the world’s top 10 projects measured in total rare earth oxides (TREO), holding 2.3 billion tonnes.
Explorers are now focusing on Wyoming to reduce dependence on China, as the United States currently has just one producing rare earths mine, Mountain Pass in California, owned by MP Materials.
As explorers focus on Wyoming to reduce dependence on China, the United States currently has just one producing rare earths mine, Mountain Pass in California, owned by MP Materials.
American Rare Earths, which is based in Australia, published a scoping study for the Halleck Creek project last month, with an updated mineral resource estimate in February showing 2.34 billion tonnes at 3,196 ppm TREO. This includes significant amounts of neodymium and praseodymium oxides, totaling 7.48 million tonnes of contained TREO, marking a 128% increase from last year's estimate. Â
$SAGA Amends Agreement With Enzolytics, Lowers Valuation
SPAC Sagaliam Acquisition has entered into a novation agreement with Enzolytics, Biogenysis, and Virogentics, retaining full ownership of VIRO, ITV-1, its nutraceutical products, license, and other assets under the restructured agreement.
Under the new agreement, the ownership of Biogenysis and its intellectual property was transferred back to Enzolytics in exchange for a price reduction from $450 million to $290 million, and the dividends from the purchase shares will be issued directly to Enzolytics shareholders by the SPAC.
The parties believe this arrangement will expedite regulatory approval for the dividend of the 29 million Sagaliam shares issued to acquire Virogentics, with all other terms of the purchase agreement remaining unchanged.
Sagaliam announced in March that its units were delisted from Nasdaq due to several issues, including overdue SEC filings, a market cap below $50 million, falling short of the minimum shareholder threshold, and problems with its business combination with Virogentics and Biogenysis. When the acquisition was announced, the SPAC had 1.47 million shares outstanding.Â
Rockpool Terminates Merger with Amcomri Group
UK-based SPAC Rockpool Acquisitions has announced the termination of its proposed reverse takeover of Amcomri Group Limited due to the withdrawal of the Amcomri shareholder group,
Amcomri Group invests in small and medium-sized specialist engineering and quality manufacturing businesses in Britain.
The deal would have valued the group at £22 million, but the company will now reimburse the blank-cheque firm for the expenses of the deal.
Rockpool plans to use these funds to pursue new acquisition opportunities in various sectors and locations, focusing on targets close to profitability or with high growth potential.
The SPAC had previously mentioned that it wanted to target businesses based in Northern Ireland, citing 70,000 registered businesses in the region, intending to merge with a target valuation of up to £20 million.Â
SPAC NewsÂ
$GTAC Sells Sponsor Stake to HCG Opportunity
SPAC Global Technology Acquisition I reported that it had entered into a securities purchase agreement with HCG Opportunity.Â
Under the agreement, HCG will acquire 3.5 million Class B shares and 7.35 million warrants for $250,000 upon the closing of the SPAC's business combination. HCG Opportunity is a fund managed by Hennessy Capital Group. Â
After the transaction closes, the SPAC’s sponsor current sponsor will retain 3.15 million warrants, 1.3 million non-redeemable Class A shares, and 164,000 Class B shares. HCG Opportunity will elect to extend the company's deadline from April 25 to July 25 by depositing $0.1/per share into a trust for the extension.
The SPAC had previously raised $200 million in its October 2021 Initial Public Offering, targeting technology companies in the marketplace, financial technology, and Software-as-a-Service sectors across Europe, Latin America, and the United States.
Meme of the Day
It is what it is…
