Happy Sunday, Friends!Ā
The last week of SPACs was packed with deals, IPOs, and other activity. A SPAC is set to take a hotel chain public, and another blank-cheque firm is set to merge with an investment platform. Also, the former CEO of a SPAC merging with Trumpās social media company sues the firm while a serial SPAC sponsor loses half his fortune as dealmaking slows down. Read on to find out the latest about all things SPACs.Ā
SPAC Deals AnnouncedĀ
$JVSA Will Take Hotel101 Public in $2.3 Billion Deal
SPAC JVSPAC Acquisition has announced a merger with Singapore-based Hotel101, a subsidiary of the Philippine-listed investment firm DoubleDragon, at an implied equity value of $2.3 billion.
Hotel101 aims to expand into 25 countries, including major tourist destinations like France, Italy, Switzerland, Thailand, Malaysia, Vietnam, and the UAE by 2026. Currently, the group operates three hotels in Manila, Quezon City, and Taguig City in the Philippines, with plans to construct five more.
Hotel101 is expanding internationally with construction underway for a 680-room hotel in Madrid, Spain, and Hotel101 Niseko in Japan, and has secured land in Los Angeles for its first U.S. location. The group is driving growth through three business models, including franchising by licensing its brand for a fee, selling hotel rooms to investors in "condotels," and operating traditional hotels.
DoubleDragon's portfolio, which is valued at approximately $3 billion, encompasses over one million square meters of gross floor area across provincial community malls, office buildings, industrial warehouses, and a hotel chain.
The agreement offers 500,000 earnout shares contingent on achieving specific financial goals by 2025. Upon approval, the merged entity plans to list on the Nasdaq under the ticker symbol āHBNBā.
$BSCA is Merging With Investment Platform Linqto in $700 Million Deal
SPAC Blockchain Coinvestors Acquisition I is merging with private investment platform Linqto, in a deal valuing the firm at an enterprise value of $700 million.Ā
Founded in 2020, the California-based company provides investors with opportunities for liquid investments in mid-to-late-stage tech companies, especially in the fintech, blockchain, and auto sectors.
Linqto, which is only open to accredited investors, reports having 756,900 registered users across 110 countries who have invested a total of $388 million in companies like AI firm Anthropic, Fintech firm Ripple, and prescription delivery firm Alto Pharmacy.Ā
The transaction is anticipated to close in the second half of 2024, post which the combined company will list on the Nasdaq stock exchange.
Blockchain Coinvestors Acquisition I previously raised $261 million through an upsized Initial Public Offering in November 2021, targeting businesses focused on the financial services, technology, or emerging blockchain technology industries.Ā
De-SPAC NewsĀ
Former Trump SPAC CEO Suing $DJT Accuses the Company of Hacking Files in Attempted Coup
In a federal lawsuit filed last month in South Florida, investment firms led by the former CEO of Digital World Acquisition Corp., which merged with Donald Trump's media company, claim they were hacked by board member Eric Swider, who allegedly plotted to oust CEO Patrick Orlando early in 2023.
The lawsuit filed by Benessere Investment Group and ARC Global Investments II alleges that Eric Swider and others hacked their computer systems and used the stolen information to undermine CEO Patrick Orlando.
The parties claim that this was part of an audacious plot to seize control and increase their holdings in the company. The suit seeks damages and an injunction to prevent the use of the stolen information and to stop further hacking of their files.
The Florida lawsuit is part of ongoing legal turmoil surrounding Trump Media's difficult path to an IPO and its chaotic initial weeks as a public entity. In July, DWAC settled fraud charges with the SEC, which had accused it of submitting false and misleading filings.
Additionally, Trump Media sued its co-founders in late March for mismanagement during the merger and sought to prevent them from owning company stock, while those co-founders have also filed a lawsuit against Trump Media in Delaware Chancery Court regarding their stakes.
Virgin Founder Branson Loses Half His Fortune as SPAC Troubles Take a Toll
A year ago, Virgin Group founder Richard Branson had nearly $2 billion invested in global stock markets, primarily in several cash-burning US companies listed through SPACs, but steep declines in those stocks have reduced their total value by up to 95%.
Since mid-2022, Richard Branson's net worth has halved to about $3 billion due to plummeting stock holdings. His wealth reached nearly $8 billion in early 2021, driven by a pandemic bull market that saw Virgin Galactic's stock soar nearly 400%, making up almost half of his net worth.
However, shares of Virgin Galactic and other firms connected to Branson's SPAC dealings have drastically fallen, with Virgin Galactic dropping about 98% from its 2021 peak due to in-flight issues and disappointing financial results.
Shares of companies involved in Richard Branson's SPAC transactions have severely declined. For instance, satellite launch firm Virgin Orbit Holdings declared bankruptcy less than 18 months after merging with a SPAC, while genetics-testing company 23andMe and e-commerce firm Grove Collaborative Holdings have seen their shares plummet over 90% since their recent SPAC mergers.
SPAC NewsĀ
$MISN Files for $100 Million Initial Public Offering
Aerospace and defense-focused blank-cheque firm Mission Space Acquisition has registered to offer 10 million units priced at $10 each, raising $100 million through an NYSE IPO.Ā
Mission Space Acquisition will focus on the aerospace and defense services industries, targeting companies that contribute to the global aerospace and defense economy.
CEO and Director Kira Blackwell, who managed her own consulting business aimed at helping innovative startups since September 2021, previously served as an iTech Program Executive within NASA's Space Technology Mission Directorate from September 2015 to September 2021.
Management of Mission Space Acquisition, which filed in August 2023 under the same proposed ticker, also manages another SPAC, Mission Control Acquisition, and has not updated its prospectus since the initial filing.
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The HeadlinesĀ
NYSE Proposal Would Extend SPAC Listings for Additional 6 Months
Trump Deposition in SPAC Suit Scrapped Ahead of Criminal Trial
AI Firm $VRT is Best Performing Ex-SPAC, Surging Past Trump Media