The last week was packed with activity from SPACs ranging from Deals to LOIs and Lawsuits. A SPAC will take a holding company public while a blank-cheque firm signs a letter of intent to take an AI-focused company public. Also, a SPAC filed a suit against an investment firm and fintech De-SPACs outperformed their IPO peers in Q4. Read on to find out the latest about all things SPACs.Â
Potential SPAC DealsÂ
$BUJA Signs LOI With Global IBO Group
Blank-Cheque firm Bukit Jalil Global Acquisition 1 has signed a non-binding letter of intent to take Global IBO Group public.Â
Global IBO is a streaming platform focused on enhancing the creativity of storytellers and content creators. The company offers AI tools like AI Script for easy scriptwriting, AI Voice for realistic voice synthesis, and AI Image for converting text to images.
Together, the platform simplifies content creation, making it accessible to creators at various skill levels.
Bukit Jalil, led by Malaysian businessman Seck Chyn Foo, raised $50 million in its June 2023 Initial Public Offering.
In its IPO prospectus, the SPAC said it was sector agnostic but would primarily target businesses present in emerging markets.
SPAC Deals AnnouncedÂ
$CLRC Will Take GreenRock Public in $446 Million Deal
SPAC ClimateRock has entered into a merger agreement with its sponsor’s subsidiary GreenRock, exchanging 44,685,000 shares valued at nearly $447 million
The deal has a minimum cash condition of at least $15 million. GreenRock will hold no rights or claims to any funds in ClimateRock’s trust account for public shareholders.Â
ClimateRock previously raised $79 million in its May 2022 Initial Public Offering. Last month, it called off a $650 million equity value deal with solar project developer E.E.W. Eco Energy World.
De-SPAC NewsÂ
Fintech De-SPACs Outperform IPO Counterparts in Q4
In Q4, returns of fintech companies that debuted via SPAC edged out those that recently had an IPO.
SPAC companies, with an average performance of +33.8%, marginally outdid recent IPO companies at +32.6%.
This was mainly due to strong recoveries by firms like MoneyLion (203%), Better (74%), and Opendoor (68%), which had significant share drops before Q4.
However, IPO companies generally outperformed SPAC companies, averaging returns of 88.2% compared to 48.0%.
During the fourth quarter, public fintech companies often outdid the S&P 500's 11.2% and Nasdaq's 12.8% returns, especially in sectors like proptech, neobanks, and high-growth payments. However, medium-growth and legacy fintech sectors lagged, achieving only a median return of 9.9%.
Hoverbike Maker A.L.I Files for Bankruptcy
A.L.I. Technologies, a hoverbike manufacturer, declared bankruptcy one year after its SPAC merger, struggling with high research costs and low demand for its advanced vehicles.
Aerwins Technology Inc., the parent company of the startup, faced financial struggles with liabilities of $8.3 million and an annual net loss of $13.7 million, nearly triple its revenue, less than a year after a challenging SPAC merger on Nasdaq.
The startup's $500,000 Xturismo Limited Edition hoverbike debuted at the 2022 Detroit Motor Show, with orders expected last year, but financial challenges led to a focus on the Middle Eastern market and cost reduction.Â
The merger with a SPAC was a unique move for a Japanese startup to secure U.S. funding at the time.
However, at the time of the close of the merger, about 99% of Aerwins's SPAC investors redeemed their shares, causing a nearly 90% drop in stock value within a month.
SPAC News
$IROH Files Lawsuit Against Investment FirmÂ
Iron Horse Acquisitions and CEO-affiliated Bengochea Capital have sued Omnia Global and its associates in the U.S. District Court for the Southern District of New York for alleged tortious conduct.
The lawsuit accuses the Swiss investment firm of violations under New York's racketeering laws. Last week, Iron Horse completed its $69 million IPO.
The SPAC aims to invest in the media and entertainment industry, particularly in areas like content studios, gaming, and talent management.
Its leadership includes Chairman Brian Turner, ex-CFO of Coinstar, and CFO Jane Waxman, former deputy CEO of 20th Century Fox.
SPAC Deal UpdatesÂ
Circle Financial Files for IPO After Scrapping $9 Billion SPAC Deal
Circle Internet Financial, known for its USDC stablecoin, has confidentially filed for an IPO with the SEC.
Circle's consideration of an IPO follows the collapse of its planned merger with Concord Acquisition in December 2022. Just two months ago, the fintech company was reportedly contemplating a public offering.
The initial SPAC deal with Concord, announced in July 2021 at $4.5 billion, was later revised to $9 billion before its mutual termination.
Circle has yet to reveal the number of shares or price range for its proposed IPO. Circle's USDC stablecoin, with a $25 billion market cap, is the second-largest, only behind Tether.
Stablecoins like USDC are pegged to stable assets like the US dollar and are crucial in the crypto market for those seeking to avoid volatility.
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The HeadlinesÂ
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