1 Among the reasons for these declines is a primary culprit: the potential share dilution caused by a SPACs’ share structure. SPAC share prices on average can decrease by more than a third in the 12 months following their acquisition, according to a 2020 study by professors at New York University and Stanford University. Three SPAC M&A areas to consider SPAC valuations Doing so can lead to valuable insights needed to complete a successful deal while limiting potential legal and regulatory challenges. SPAC sponsors and directors can mitigate these risks by obtaining a fairness opinion from an experienced financial advisor prior to a SPAC acquisition. Notable risks include valuation complexities, litigation against the SPAC sponsor and directors and regulatory requirements. However, the potential risks are an important consideration for SPAC sponsors and directors. The significant potential upside for SPAC sponsors explains their intense popularity when combined with demand from companies that want the streamlined access to public capital that SPACs offer. Prior to the acquisition, each of the SPAC’s public shareholders can redeem shares at the IPO price, with interest, or participate in the transaction and become a public shareholder of the acquired company. Just in the first two months of 2021, SPACs raised over $65b, which is more than two-thirds of the record-setting $83b raised in 2020 and nearly five times more than the $13.6b raised in 2019, according to SPACInsider data.Īt a high level, SPACs are “blank check companies” formed by financial sponsors who raise capital in an initial public offering (IPO) and use the proceeds to acquire a private company and take it public within a specified time frame (usually 24 months). Marion completed its business combination with GS Acquisition II in October 2021.In a time of economic and market uncertainties, one thing is certain: SPACs are thriving. Rowe Price Investment Management, Inc., a global investment management organization. (NYSE: MIR), a global provider of radiation detection, measurement, analysis and monitoring solutions to the medical, nuclear, defense, and research end markets, today announced that it has agreed to sell $150 million of shares of Class A common stock to certain funds and accounts advised by T. Mirion Technologies Announces $150 Million Investment from T. GTI received the Frost & Sullivan 2023 Global Leadership Award and the 2023 Global Technology Innovation Leadership Award.Ĭurrently, GTI is completing a business combination with Energem Corp. NASDAQ-bound Graphjet Technology Sdn Bhd (GTI), the world’s leading graphite and single-layer graphene producer, has recently been awarded the Prestigious 2023 Best Practices Awards by Frost & Sullivan. NASDAQ-bound Graphjet Technology bags two awards from Frost & Sullivan Li is already among the Hong Kong-based Hyphen’s investors. (NASDAQ:BTWN), the US-listed blank-check company backed by billionaires Peter Thiel and Richard Li, is considering a merger with financial technology firm Hyphen Group.Ī transaction could value the combined company at several hundred million dollars, the people said, asking not to be identified because the matter is private. Thiel-Backed SPAC Weighs Merger With HK Fintech Hyphen, Sources Sayīridgetown Holdings Ltd. UK EV charging start-up raises new funds after SPAC collapseĮO Charging, a British electric vehicle charging company that works with companies such as Amazon, has agreed funding from investors including from the Middle East at a lower valuation than targeted under a failed Spac listing in New York.ĮO was last year forced to walk away from a proposed $675mn deal to combine with First Reserve Sustainable Growth, a New York-listed special purpose acquisition company, after the market for Spac-backed flotations collapsed. Latest SPAC News: EO Charging raises new funds after SPAC deal collapses, Bridgetown Holdings weighs merger with Hyphen Group, and Graphjet receives awards from Frost & Sullivan Headline Post, INTEL, SPACs in the News by Marlena Haddadīelow is a daily summary of links to the latest SPAC news and rumors gathered across the web.
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