Happy Sunday, Friends!
The previous week was packed with deals, IPOs, and other SPAC-related events. Four new deals were announced, including SPACs taking a conglomerate, an eVTOL company, and Korean and Chinese Biotech firms public. Also, a new SPAC priced its IPO, and SPAC rules could come under the microscope in the week ahead when the SEC meets. Read on to find out the latest about all things SPACs.
SPAC Deals Announced
Entrepreneur Greg Lindberg plans to merge approximately 38% of his investments with Quadro Acquisition One Corporation, valuing the combined entity at an enterprise value of $3 billion.
The merger target includes seven companies in sports collectibles, software, cloud-based IT, and healthcare services, all affiliated with Global Growth, a private equity firm founded by Lindberg. The group operates in over 20 countries and employs over 7,000 people globally.
The aim of the merger of Global Growth Companies with Quadro SPAC is to improve shareholder accountability and transparency by consolidating leadership and financial reporting.
The merger deal will supply over $2 billion in capital to bolster the policyholder reserves of Lindberg's insurance companies.
Direct Selling Acquisition announced a merger with Aeroflow Urban air mobility Private Limited from India and Ireland's Hunch Technologies, valuing the combined entity at $223 million
Hunch Mobility is an urban air mobility platform in India, offering short-distance air mobility services with over 1,626 flights and a 43% repeat flying rate, currently operating in Maharashtra and Karnataka.
An investor holding a majority economic interest in the SPAC's sponsor committed to invest up to $20 million in DSAQ through equity purchases, convertible notes, and preferred shares, subject to non-redemption.
Concurrently, the SPAC signed a subscription agreement for the sale of 700,000 preferred shares for $7 million, and Hunch Technologies arranged to sell 300,000 shares for $3 million to Quick Response Services Provider before the merger completes.
If approved, Hunch Technologies plans to list on the NYSE under the symbol ‘HNCH'. The SPAC previously raised $200 million in its September 2021 IPO focused on domestic businesses in the direct selling industry, but saw $182.5 million being redeemed from the trust in an extension vote in March 2023.
SPAC Vision Sensing Acquisition Corp said it had signed a definitive agreement to take Mediforum, a leading Korean biotechnology firm specializing in drug research and development public.
Mediforum focuses on developing biomedical products for Alzheimer's and neuropathic pain, with products ranging from anti-dementia medication to health foods.
The company's flagship drug, PM012, is in advanced clinical trials for Alzheimer's and is being explored for other neurological conditions like Parkinson's disease and stroke.
Additionally, Mediforum is working on MF018, a non-narcotic therapy currently in clinical trials for Chemotherapy-Induced Peripheral Neuropathy.
Under the terms of the deal, the current shareholders of Mediforum will receive $250 million in consideration. Once the transaction closes in the second half of the year, the combined company will be listed on the Nasdaq stock exchange.
Bowen Acquisition Corp has agreed to merge with Shenzhen Qianzhi BioTechnology, a Chinese company specializing in ozone health products, with the deal valued at just over $75 million.
Qianzhi BioTech, based out of Shenzhen, focuses on developing plant-based and ozonated products for antibacterial and skincare purposes, as well as for gynecological and andrological applications, with most products being oil-based and herbal-infused.
The company also produces ozonated disinfectants using ambient temperature ozone curing technology, which the company believes is safer and eco-friendly than traditional disinfectants like alcohol, chlorine, or phenol.
The current shareholders will receive 7.24 million in shares, and could further receive 1.4 million shares contingent on reaching certain earnout targets. The transaction is anticipated to close sometime in the second or third quarter of 2024, post which the combined company will list on the Nasdaq stock exchange.
The Securities and Exchange Commission is set to meet on January 24th to discuss SPAC rules.
The commission plans to adopt new rules and amend existing ones to improve disclosure and investor protection in SPAC's initial public offerings and their subsequent business combinations, while also focusing on broader investor safety issues related to shell companies.
Unresolved issues include whether SPACs fall under the Investment Company Act of 1940 rules, and a proposal to extend liability for a SPAC target's financial projections to its underwriter.
Helix Acquisition II, created by Cormorant Asset Management, is offering 10 million shares at $10 each and plans to list on the Nasdaq under the symbol HLXB.
The sponsor is a life sciences investment firm managing over $2 billion in assets. It said that it would consider purchasing 2.5 million shares and considering a $35 million investment in a private placement linked to a SPAC merger, but no definitive agreement had been reached yet.
The SPAC said that it would look to target companies in the healthcare industry. The underwriter can choose to buy up to 1,500,000 extra Class A ordinary shares within 45 days of this IPO to cover any over-allotments.
Meme of the Day
Source: The Big Blend