FRGE debuts with a squeeze; a Deal Announcement for THCP

by | Mar 22, 2022

Short squeeze action makes for an impressive debut at FRGE. A DA for THCP. And all the day’s news in SPACs.

————————————————-
Free Investor Resources from Boardroom Alpha
—————————————————-
** Podcast: Know Who Drives Return
** Daily SPAC Newsletter
** Full SPAC Listing

Forge Global Debuts with a Squeeze

Forge Global (FRGE) deSPACed today from its sponsor Motive Capital Corp. The company generated “$215.6M of cash proceeds” prior to transaction fees and expenses. Deal included a $68.5M PIPE. Proxy called for FPA units to plug redemption hole between $50M and $140M.

Forge is a secondary market where accredited investors and can buy and sell shares of private companies. Currently, accredited investors on Forge can buy stock in ByteDance, owner of TikTok; Bolt, an online checkout company; and Kraken, a smaller competitor to Coinbase(COIN).

Today’s action was largely a short squeeze. Shares rocketed over 120% before closing the day up 60% at $16.15. Notably, this is one of the few deSPACs to trade above $10 a share on its debut. Expect downward volatility in the short term as fast-money capitalizes on the low float here.

Deal Announcement for Thunder Bridge

Thunder Bridge Capital Partners IV (THCP) announced plans to merge with Coincheck, Inc. Coincheck is a digital asset trading service with the highest number of app downloads in Japan. The transaction values the company at an EV of $1.25B. No PIPE. Expect high redemptions on this one.

Elsewhere in SPACs

  • FaZeClan announces Board of Directors. FaZeClan, which is to merge with B. Riley Principle 150 Merger Corp. Cl A(BRPM), announced its Board of Directors. FaZeClan is a lifestyle and media platform rooted in gaming and youth culture. The Board will be led by Chairman Lee Trink, Chief Executive Officer and Co-Founder, FaZe Clan. Think previously served as General Manager for artist-first label Lava Records from 2001 to 2005, General Manager and COO of Virgin Records from 2005 to 2007, and President of EMI Capitol Music Group  from 2007 to 2008. Other notable members include Calvin “Snoop Dogg” Cordozar Broadus Jr., American rapper, singer, songwriter, actor, record producer, DJ, media personality and business entrepreneur.
  • Digital media entertainment company BuzzFeed (BZFD) CEO Jonah Peretti announced voluntary buyouts to fewer than 30 newsroom staffers. BZFD shares have been under pressure since deSPAC from 890 5th Avenue Partners in December 2021. High redemptions caused shares to fall 40% in its first week of trading; BZFD shares are currently hovering around $5. The buyouts look like a compromise to shareholders who want the entire BuzzFeed newsroom abolished. BuzzFeed News has about 100 employees and loses roughly $10 million a year. Last week, about 80 current and former BuzzFeed employees sued the company, alleging that its mismanaged public listing process cost them millions of dollars. Shares were up 6% on the news, closing at $5.27.
  • TWNT approved merger with Terran Orbital. Tailwind Two Acquisition Corp (TWNT) approved its merger with Terran Orbital Corporation, a small satellite manufacturer primarily serving the United States aerospace and defense industry. TWNT is permitting shareholders to withdraw redemption requests on March 24, 2022. Shares closed at $8.91.

SPAC Calendar

SPAC Deal Votes

  • Mar 29 | HTPA –> Packable
  • Mar 31 | HLXA –> MoonLake Immunotherapeutics AG

SPAC Extension Votes

  • Mar 29 | THCA

More from Boardroom Alpha

For ongoing tracking, analytics, and data on SPACs checkout Boardroom Alpha’s SPAC Data and Analytics service.

Recent Analysis

Disclaimer

The opinions and information contained herein have been obtained or derived from sources believed to be reliable, but Boardroom Alpha cannot guarantee its accuracy and completeness, and that of the opinions based thereon. 

This report contains opinions and is provided for informational purposes only – it does not constitute investment, legal or tax advice. You should not rely solely upon the research herein for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional before you make any investment.  

None of the information contained in this report constitutes, or is intended to constitute a recommendation by Boardroom Alpha of any particular security or trading strategy or a determination by BA that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.  

No representation or warranty, expressed or implied, is made on behalf of Boardroom Alpha as to the accuracy or completeness of the information contained herein. Boardroom Alpha does not accept any liability for any direct, indirect or consequential loss or damage suffered by any person as a result of relying on all or any part of this research and any liability is expressly disclaimed.