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February 6, 2023

Return of the Mega-Deal?
Just one month ago, we observed how deal sizes were small and getting smaller. There were six deals announced in the first week of January, and none of them carried an enterprise value greater than $200mm.

But that trend may be reversing after L Catterton Asia Acquisition's (LCAA) announcement last week to acquire Lotus Technology, a luxury electric vehicle manufacturer, for $5.4bn.
The Lotus deal sports a pair of bulge-bracket advisors. A leading private equity firm is the SPAC's sponsor. And it's the biggest SPAC deal in almost a year.
Below, we changed the y-axis on the deal size chart to a log scale to highlight just how dramatic the trend of decreasing deal sizes has been over the past 15 months.
Does the Lotus deal signal a shift back toward bigger deals the market can get excited about?

It would be nice to see some kind of committed financing alongside the transaction -- there's no PIPE, even from L Catterton, the SPAC's sponsor. But the SPAC has traded tens of millions of shares at a premium to cash in trust. And the warrants look like they're actually being used for speculation on the underlying, rather than exclusively as an arb play.

We're still watching activity from the SEC closely. What will happen when the commission's long-awaited rule changes are finalized later this year?

If bulge-bracket firms come back into the market, we could be in for a significant increase in mega deals. But if the broader IPO market remains cold, then we'll likely still be waiting for the return of risk appetite to the primary issuance market before SPACs have a chance at enjoying a healthy rebound.
News From the Past Week

Deal News

  • L Catterton Asia Acquisition Corp (LCAA) announced a deal to acquire Lotus Technology, a global luxury electric vehicle maker. The deal reflects an enterprise value of $5.4bn and is expected to close in 2H 2023.
  • Pono Capital Two, Inc. (PTWO) announced a deal to acquire SBC Medical Group, which specializes in medical care and special treatment including cosmetic surgery, infertility, dental, and orthopedics. The deal reflects an enterprise value of $1.2bn and is expected to close in Q4 2023.

  • Prime Impact Acquisition I (PIAI) announced a deal to acquire Cheche Technology, an auto insurance technology platform. The deal reflects an enterprise value of $841mm and is expected to close in Q3 2023.

  • Viveon Health Acquisition Corp. (VHAQ) terminated its business combination agreement with Suneva Medical, citing material breaches by the target. VHAQ intends to seek another business combination.

  • 10X Capital Venture Acquisition Corp. III (VCXB) and Sparks Energy agreed to terminate their business combination agreement with neither party admitting liability or wrongdoing. VCXB intends to seek an alternative business combination.

  • Forest Road Acquisition Corp. II (FRXB) and HyperloopTT agreed to terminate their business combination agreement with neither party having any further liability.

  • New Vista Acquisition Corp (NVSA) signed an LOI with Verijet, a company that provides customers with private aviation services.

  • Tailwind Acquisition Corp. (formerly TWND) closed its acquisition of NUBURU on Tuesday 1/31/2023 with less than 1% of public shares remaining. Ordinary shares and warrants are now trading on the NYSE as “BURU” and “BURU/W.”

  • PONO Capital Corp (formerly PONO) closed its acquisition of AERWINS Technologies on Friday 2/3/2023 with 1% of public shares remaining. Ordinary shares and warrants will trade on the NASDAQ as “AWIN” and “AWINW” beginning Monday 2/6/2023.

  • Lionheart III Corp (LION) shareholders approved the company’s acquisition of Security Matters with less than 1% of public shares remaining. No closing timeline was given.

  • Constellation Acquisition Corp I (CSTA) transferred its sponsor ownership to affiliates of Antarctica Capital Partners.
New S-1's
There were no SPAC S-1's last week.

IPOs
Name Ticker Raised ($mm) Sector Cash in Trust Coverage
Cetus Capital CETU 50 Technology 101.8% W+R


Liquidations
Name Ticker Size ($mm) Announced Liq. Date Trust Per Share
Catalyst Partners CPAR 344 1/31/2023 1/31/2023 $10.18
Seaport Calibre Materials SCMA 130 2/1/2023 2/1/2023 $10.27
Biotech Acq BIOT 230 2/1/2023 2/3/2023 $10.15
Mason Industrial Tech MIT 500 1/31/2023 2/15/2023 $10.14
Itiquira Acq ITQ 230 2/2/2023 2/15/2023 $10.17
Ascendant Digital III ACDI 300 1/31/2023 2/16/2023 TBD

Registrations Withdrawn
There were no withdrawn registrations last week.

Charter Extensions

  • USCT extended its charter through 6/29/2023 with no sponsor contribution to trust and 24% of public shares remaining.
  • LIBY extended its charter through 5/8/2023 with a single $0.10 per share sponsor contribution to trust.
  • VSAC extended its charter through 5/3/2023 with a single $0.10 per share sponsor contribution to trust.
  • GSD extended its charter through 8/9/2023 with a monthly $0.063 per share sponsor contribution to trust and 13% of public shares remaining.
  • BLUA extended its charter through 8/2/2023 with no sponsor contribution to trust and 7% of public shares remaining.
  • BWAQ extended its charter through 5/2/2023 with a single $0.10 per share sponsor contribution to trust.
  • SZZL extended its charter through 8/8/2023 with a monthly $200,000 per share sponsor contribution to trust. Redemption statistics were not provided.
  • CSTA extended its charter through 1/24/2024 with a monthly $0.033 per share sponsor contribution to trust and 15% of public shares remaining.
  • MURF extended its charter through 2/7/2024 with a monthly contribution of 1% of funds remaining in trust after redemptions (statistics not provided).
  • IMAQ extended its charter through 8/2/2023 with a monthly $0.065 per share sponsor contribution to trust and 9% of public shares remaining.
  • TOAC extended its charter through 11/8/2023 with a monthly $330,000 ($0.034 per share) sponsor contribution to trust and 42% of public shares remaining.
  • MLAI extended its charter through 3/5/2023 with a single $0.033 per share sponsor contribution to trust.
  • AAC extended its charter through 8/4/2023 with a monthly $1.2mm ($0.026 per share) sponsor contribution to trust and 47% of public shares remaining.
  • AACI extended its charter through 8/17/2023 with no sponsor contribution to trust and 23% of public shares remaining.
  • DHAC extended its charter through 5/8/2023 with a single $350,000 ($0.5 per share) sponsor contribution to trust.

Upcoming Meetings and Deadlines

  • 2/6/2023 AMCI LanzaTech approval meeting
  • 2/6/2023 QFTA Charter extension meeting (liquidation deadline 2/9/2023)
  • 2/6/2023 PMGM Charter extension meeting (liquidation deadline 2/11/2023)
  • 2/6/2023 MCAA Charter extension meeting (liquidation deadline 2/9/2023)
  • 2/7/2023 MCAE ETAO International Group approval meeting (outside date 2/20/2023)
  • 2/7/2023 HHLA Charter extension meeting (liquidation deadline 2/9/2023)
  • 2/7/2023 PUCK Charter extension meeting (liquidation deadline 2/16/2023)
  • 2/7/2023 CPTK Charter extension meeting (liquidation deadline 2/11/2023)
  • 2/7/2023 MACA Charter extension meeting (liquidation deadline 2/19/2023)
  • 2/7/2023 DNZ Liquidation at ~$10.17 per share
  • 2/8/2023 IQMD Charter extension meeting (liquidation deadline 2/9/2023)
  • 2/8/2023 BWAC Charter extension meeting (liquidation deadline 2/17/2023)
  • 2/8/2023 WQGA Charter extension meeting (liquidation deadline 2/13/2023)
  • 2/8/2023 ACAC Charter extension meeting
  • 2/8/2023 IPAX Intuitive Machines approval meeting
  • 2/8/2023 PFDR Movella approval meeting (liquidation deadline 2/19/2023)
  • 2/8/2023 ITQ Liquidation deadline
  • 2/8/2023 IRRX Charter extension meeting (liquidation deadline 2/15/2023)
  • 2/9/2023 ANZU Charter extension meeting
  • 2/9/2023 ADOC Charter extension meeting (liquidation deadline 2/12/2023)
  • 2/9/2023 GSQD Liquidation at ~$10.18 per share
  • 2/10/2023 NVSA Charter extension meeting (liquidation deadline 2/19/2023)
  • 2/11/2023 EVGR Liquidation deadline (pending $0.10 deposit extension)
  • 2/11/2023 ADRA Liquidation deadline
  • 2/11/2023 CPAQ Liquidation deadline (pending $0.10 deposit extension)
  • 2/12/2023 LGAC Liquidation deadline
  • 2/12/2023 SCOB Liquidation at ~$10.20 per share
  • 2/12/2023 GVCI Liquidation deadline (pending $0.10 deposit extension)
  • 2/13/2023 SGII Charter extension meeting (liquidation deadline 2/19/2023)
  • 2/14/2023 IFIN Charter extension meeting (liquidation deadline 2/23/2023)
  • 2/14/2023 PIAI Liquidation deadline (pending $0.055 deposit extension)
  • 2/14/2023 AXAC Charter extension meeting (liquidation deadline 2/18/2023)
  • 2/14/2023 DISA Charter extension meeting
  • 2/14/2023 GENQ Charter extension meeting (liquidation deadline 2/17/2023)
  • 2/14/2023 CHAA Charter extension meeting (liquidation deadline 2/17/2023)
  • 2/15/2023 ACDI Liquidation deadline
  • 2/15/2023 HNRA Liquidation deadline (pending $0.10 deposit extension)
  • 2/15/2023 LFAC Charter extension meeting (liquidation deadline 2/19/2023)
  • 2/15/2023 CCAI Charter extension meeting (liquidation deadline 3/2/2023)
  • 2/15/2023 FTAA Charter extension meeting (liquidation deadline 2/25/2023)
  • 2/15/2023 MIT Liquidation at ~$10.14 per share
  • 2/15/2023 ITQ Liquidation at ~$10.17 per share
  • 2/16/2023 CENQ Liquidation deadline
  • 2/16/2023 ACDI Liquidation (per-share amount TBD)
  • 2/17/2023 TLGY Charter extension meeting (liquidation deadline 3/3/2023)
  • 2/17/2023 CCVI Liquidation deadline
  • 2/17/2023 CVII Liquidation deadline
  • 2/17/2023 PFDR Charter extension meeting (liquidation deadline 2/19/2023)
  • 2/17/2023 ASCA Liquidation deadline
  • 2/17/2023 KGCI Liquidation deadline (pending $0.10 deposit extension)
  • 2/17/2023 ALOR Charter extension meeting (liquidation deadline 2/23/2023)
  • 2/18/2023 MSAC Liquidation deadline
  • 2/18/2023 FTII Liquidation deadline (pending $0.10 deposit extension)
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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