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August 28, 2023

Trust Account Modeling
There's one subset of SPAC trust accounts that poses a particular challenge for modeling: those that have indicated a move from Treasurys to cash. We've debated how best to do that for months. Those SPACs were originally earning near-zero, but over the course of 2023, it became apparent that SPACs in-cash were earning meaningful yields on their trust accounts.

After a thorough analysis of August's 10-Q filings, we're confident in updating our estimated trust model to account for the interest rate being earned by SPACs in cash as a significant fraction of those that are still fully invested.

Effective today, you'll notice an increase in our estimates for SPACs that have moved to cash or indicated the intention to do so.

Please reach out with any questions.
News From the Past Week

Deal News

  • Finnovate Acquisition Corp (FNVT) announced a deal to acquire Scage International, a zero-emission solution provider focused on new energy heavy-duty commercial vehicles and e-fuel solutions. The deal reflects a post-combination value of $1bn. No closing timeline was given.

  • SEP Acquisition Corp (SEPA) announced a deal to acquire SANUWAVE Health, Inc. (OTCQB: SNWV), a provider of next-generation FDA approved wound care products. The deal reflects an enterprise value of $128mm and is expected to close in Q4 2023.

  • Ross Acquisition Corp II (ROSS) and APRINOIA Therapeutics agreed to terminate their business combination agreement with no termination fee payable by either party.

  • InterPrivate III Financial Partners Inc. (IPVF) terminated its business combination agreement with Aspiration, noting the SPAC cannot provide any assurance it will receive the termination payments to which it is entitled.

  • Spree Acquisition Corp. 1 Limited (SHAP) and zTrip mutually agreed to terminate their business combination agreement.

  • SDCL EDGE Acquisition Corporation (SEDA) signed an LOI with Magnet Joint Venture relating to two specialty metals businesses, Cunova GmbH and KME Specialty Aerospace Business.

  • Enphys Acquisition Corp. (NFYS) signed an LOI with an advanced biofuels company in Latin America.


Deal Closings & Approvals

  • Aurora Acquisition Corp. (formerly AURC) closed its acquisition of Better on Wednesday 8/23/203. Redemption statistics were not provided. Ordinary shares and warrants are now trading on the NASDAQ as “BETR” and “BETRW.”

  • Prime Number Acquisition 1 Corp. (formerly PNAC) closed its acquisition of Noco-Noco on Friday 8/25/2023 with 34% of public shares remaining. Ordinary shares and warrants will trade on the NASDAQ as “NCNC” and “NCNCW” beginning Monday 8/28/2023.

  • FG Merger Corp. (formerly FGMC) closed its acquisition of iCoreConnect on Friday 8/25/2023 22% of public shares remaining. Ordinary shares will trade on the NASDAQ as “ICCT” beginning Monday 8/28/2023.

Other Deal News & Rumors

  • Reuters published an article about the long-awaited finalization of a number of SEC rule changes, including to SPAC regulations.

  • Bloomberg reported that investors are suing Alec Gores over Gores Guggenheim, Inc. (GGPI)’s acquisition of Polestar for $20bn in June 2023.

IPOs
There were no SPAC IPOs last week.

New S-1's
Name Ticker Size ($mm) Underwriter Trust Funding Coverage
Mission Control MISN 100 EBC 101.0% 1/2

Liquidations
There were no new liquidations announced last week.

Registrations Withdrawn
There were no registrations withdrawn last week.

Charter Extensions

  • IFIN extended its charter through 2/23/2024 with a monthly $160,000 ($0.022 per share) sponsor contribution to trust. Approximately 37% of public shares remain, representing $81mm in trust.
  • VHNA extended its charter through 5/26/2024 with a monthly $225,000 ($0.019 per share) sponsor contribution to trust. Approximately 59% of public shares remain, representing $127mm in trust.
  • MACA extended its charter through 8/19/2024 with a monthly $0.025 per share sponsor contribution to trust. Approximately 4% of public shares remain, representing $5mm in trust.
  • PEPL extended its charter through 4/19/2024 with a monthly $0.02 per share sponsor contribution to trust. Approximately 5% of public shares remain, representing $9mm in trust.
  • NFNT extended its charter through 11/23/2024 with a monthly $120,000 ($0.015 per share) sponsor contribution to trust. Approximately 29% of public shares remain, representing $85mm in trust.
  • FSRX extended its charter through 2/22/2024 with no sponsor contribution to trust. Approximately 3% of public shares remain, representing $11mm in trust.
  • KWAC extended its charter through 11/24/2023 with a monthly $69,218 sponsor contribution to trust. Redemption statistics were not provided.
  • TLGY extended its charter through 10/3/2023 with a single $200,000 ($0.027 per share) per share sponsor contribution to trust.

Upcoming Meetings and Deadlines

  • 8/28/2023 GFGD ZeroNox approval meeting (liquidation deadline 9/14/2023)
  • 8/28/2023 MNTN Liquidation deadline
  • 8/28/2023 SWSS Charter extension meeting (liquidation deadline 8/28/2023)
  • 8/29/2023 FLME Charter extension meeting (liquidation deadline 9/1/2023)
  • 8/29/2023 BOCN Charter extension meeting (liquidation deadline 9/7/2023)
  • 8/29/2023 CNDA Charter extension meeting (liquidation deadline 9/3/2023)
  • 8/30/2023 GFOR NKGen Biotech approval meeting
  • 8/30/2023 NRAC Charter extension meeting (liquidation deadline 9/4/2023)
  • 8/30/2023 PPYA Charter extension meeting
  • 8/31/2023 GGAA Charter extension meeting (liquidation deadline 9/13/2023)
  • 8/31/2023 NSTD Charter extension meeting (liquidation deadline 9/4/2023)
  • 8/31/2023 CCAI Liquidation at ~$12.34 per share
  • 8/31/2023 NSTC Charter extension meeting (liquidation deadline 9/4/2023)
  • 9/1/2023 FSNB Charter extension meeting (liquidation deadline 9/2/2023)
Disclosures: Site administrators may maintain positions in various SPAC securities and may trade in or out of those securities at any time without notice. Information from spacresearch.com is provided for informational purposes only and should not be relied upon as the basis for any investment decision. Nothing on spacresearch.com is a recommendation or solicitation to buy or sell any investment.
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