Happy Sunday, Friends!Â
The first week of trading in 2024 was packed with deals and updates for SPACs. Three new deals were announced, including a SPAC taking an amusement park-focused tech firm, a helium exploration company, and an insurance brokerage firm public. Also, a film studio completes an acquisition ahead of its merger, and a sponsor sells its stake in a SPAC. Read on to find out the latest about all things SPACs.Â
SPAC Deals AnnouncedÂ
Amusement Park Tech Firm Pomvom is Going Public Through $125 Million Merer With $ISRL
Israel-based amusement park technology firm Pomvom will go public through a merger with SPAC Israel Acquisitions Corp in a deal valuing the firm at $125 million.Â
Pomvom collaborates with major global theme park operators like Six Flags, Warner Bros, and Merlin Entertainment, and expects to expand to 47 sites by 2024, a 23% increase. The company's new digital content launch on its online platform aims to drive long-term growth.
In 2022, Pomvom's revenue was $57.4 million, and for the first nine months of 2023, it reached $45.3 million, with its digital platform contributing $15.6 million, a 139% increase from the same period in 2022.
The merger is anticipated to generate gross proceeds of at least $20 million. Pomvom plans to use proceeds from the merger to grow its revenue by at least 30% in 2024, aiming for a positive adjusted EBITDA.
$ROCL Set to Merge With New Era Helium in $90 Million Deal
Roth CH Acquisition V is set to merge with helium exploration and production company New Era Helium Corp in a deal valuing the firm at $90 million.Â
New Era Helium owns 137,000 acres with over 2 billion cubic feet of proven helium reserves and has secured two long-term offtake agreements with a major helium buyer. The company is constructing a new processing plant, anticipated to be completed in Q4 2024.
Management at the firm said that it would benefit from industry tailwinds driven by the semiconductor manufacturing and aerospace sectors, and it could further scale its business through several acquisition opportunities in the future.Â
NEH stockholders will retain their equity in the merged entity without receiving cash proceeds. Both parties plan to raise a PIPE to supplement the transaction.
The SPAC had previously signed a letter of intent for a merger with LiveOne's Slacker, a music streaming service, but it expired in October by mutual agreement.
$ATMC is Taking Insurance Brokerage Firm HCYC Group Public
SPAC AlphaTime Acquisition announced plans to merge with Hong Kong-based insurance brokerage firm HCYC Group.Â
HCYC Asia is a holding company for a subsidiary in Hong Kong called HCYC Wealth Management.
The company is a licensed professional insurance brokerage started in 2008 and collaborates with firms like AXA China Region Insurance and Prudential Hong Kong to provide tailored services to individual and corporate clients.
The SPAC said shareholders of HCYC are set to receive 7.5 million shares in the combined company, which is valued at $75 million.
The transaction is anticipated to close early in 2024, with the combined company set to list on Nasdaq under a new ticker. Â
SPAC Deal UpdatesÂ
Lionsgate Acquires eOne Studio for $375 Million Ahead of $4.6 Billion Merger With $SCRM
Lionsgate has finalized the acquisition of Canada's Entertainment One (eOne) for approximately $375 million, along with taking over production financing loans, ahead of its $4.6 billion merger with SPAC Screaming Eagle Acquisition Corp.
The acquisition of Entertainment One (eOne) by Lionsgate adds a 6,500-title film and TV library, including both scripted and unscripted content, as Lionsgate prepares to separate its studio business from its Starz network and streaming services.
eOne's notable productions include "The Rookie" for ABC, "Yellowjackets" for Showtime, and "Naked & Afraid" for Discovery. The deal grants Lionsgate the film development rights for the Hasbro-owned Monopoly brand but excludes the children's franchise Peppa Pig, a key asset in Hasbro's $3.8 billion acquisition of eOne in 2019.
Last month, Screaming Eagle Acquisition announced plans to merge with Lionsgate's studio business, including its Television Studio, Motion Picture Group segments, and film and television libraries, to create Lionsgate Studios Corp.
This spinoff establishes Lionsgate Studios as an independent, platform-agnostic content company with a portfolio featuring franchises like The Hunger Games and John Wick, a strong film and TV production and distribution business, a talent management company, and an extensive library.
SPAC News
$APTM Sellers Stake to Mercury CapitalÂ
SPAC Alpha Partners Technology Merger Corp said it had entered into a purchase agreement to transfer its stake to Mercury Capital.Â
Under the agreement, Mercury Capital bought 3,902,648 founder units of APTM from the sponsor, each comprising one Class B ordinary share and one-third of a redeemable warrant for a Class B share. Additionally, Mercury secured rights to 70% of 2,030,860 founder units held in escrow, contingent on investors keeping and not redeeming their Class A shares of APTM during its business combination, with the total purchase price being $1.
Alpha Partners Sponsor and Mercury Capital each pledged $112,500 for extensions in December 2023 and January 2024, with the sponsor also agreeing to cover APTM's specific pending liabilities at closing and providing founder units to Mercury if these liabilities are unpaid or if extension contributions are not met.Â
Additionally, they signed a subscription agreement with Palmeira, where Mercury can raise $1.5 million for extension payments and operational capital, with an initial $250,000 due at signing and further amounts at Mercury's discretion. Upon completing a business combination, Mercury will exchange 0.85 Class B shares for each dollar funded by Palmeira, converted into APTM common stock, but no shares will be forfeited if the combination doesn't occur.
Alpha Partners Tech, previously signed a non-binding letter of intent in July with 3D printing company Glowforge. The SPAC, having raised $282.5 million in its July 2021 IPO, experienced a 47.9% redemption of its trust during prior extensions, leaving it with around $153 million.
Meme of the Day
Finally, I’ve become a billionaire now
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