SPAC Carnage Continues, MTAC and Memic Call off Deal

by | Mar 10, 2022

The 11th cancelled deal of 2022 highlights the day in SPACs. We recap all the news.

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In the 11th SPAC deal cancellation already in 2022, MedTech Acquisition Corp. (MTAC) terminated its deal with Israel-based Memic Innovative Surgery Ltd. “due to market conditions and associated volatility as a result of recent world events.” The SPAC has until December to do a new deal.

It’s a harrowing sign for the 100+ SPACs that have outstanding DAs and are waiting to close their respective transactions. This torrid pace has not been seen before.

Tomorrow.io Co-Founder Rei Goffer, who also terminated their own SPAC deal this week, summed it up perfectly:

It’s just not a good time for growth stage companies to go public right now,” said Goffer. “It’s not just space companies. Pretty much every growth stage [Space-as-a-Service] company or tech company that went public in the last six to nine months finds itself at 20% their valuation now, and that’s a not a pleasant place to be in unless you have no other choice. We had other choices.

Tomorrow.io Co-Founder Rei Goffer

With DeSPACs under pressure and financing increasingly hard to come by, it’s not the best market at the moment for targets looking to go public via SPAC. And, as we spoke about yesterday, look out for PE to start circling some of the beaten down names.

FiscalNote/DSAC reports upside surprise 

Here’s a rare find: a beat-and-raise in SPAC-land. FiscalNote reported an upside surprise in its preliminary Q4 financial results. The company, a technology provider of global policy and market intelligence, beat its previous FY2021 run-rate guidance, reporting $109 million for FY2021 (+69% YoY). FiscalNote also reaffirmed its revenue run-rate growth of 58% YoY to $173M in FY2022. The company anticipates closing its merger with Duddell Street Acquisition Corp (DSCA) in Q2. 

LiDAR maker CPTN reports Q4 earnings results 

Automotive LiDAR maker Cepton (CPTN) reported Q4 earnings results today aftermarket. CPTN deSPAC’d last month via sponsor Growth Capital Acquisition Corp. (GCAC). As we previewed earlier today, CPTN is a volatile short-squeeze situation. Around 90% redemptions and a low float of ~1.5M shares puts short interest over 25% of public float. 

The good news: CPTN maintained its 2022 revenue guidance of $15M and is  executing toward its series production award with General Motors (GM). CPTN says its on track to complete its C-sample in 1H2022. 

But with no incremental ‘good’ news, shorts are having their way with the stock. CPTN shares closed at $7.75. Shares have been  roller coaster after-hours, trading up ~3% at this writing. 

Elsewhere in SPACs

  • Patria Latin America (PLAO) priced a $200M IPO; 1/2 W, $10.30 in trust, LatAm focused. The SPAC is backed by Brazilian asset management firm Patria Investimentos Ltda.
  • Regenerative medtech company Suneva Medical appointed Michael Brower as CFO. Prior to joining Suneva, Brower was a co-founder and Director of Vivatia Skin Care. The company signed a DA with Viveon Health Acquisition (VHAQ) in January.
  • In what might be a first, InfiniteWorld added Milica Zec as its Chief Metaverse Officer. InfiniteWorld is planning on going public via Aries I Acquisition Corp (RAM)
  • B Riley Principal 150 Merger Corp (BRPM) filed an update on its merger with FaZe Clan in which (among other changes) it waived its minimum cash to closing condition and entered into a bridge term loan facility.

Today’s Price Action

Biggest Gainers

1.09% ~ $ 10.18 | SV – Spring Valley Acquisition Corp (Announced)
.81% ~ $ 9.90 | CPAA – Conyers Park III Acquisition Corp. (Pre-Deal)
.72% ~ $ 9.85 | INAQ – Insight Acquisition Corp. (Pre-Deal)
.61% ~ $ 9.88 | LCW – Learn CW Investment Corp (Pre-Deal)
.60% ~ $ 10.05 | DTRT – DTRT Health Acquisition Corp. (Pre-Deal)
.52% ~ $ 9.70 | APMI – AxonPrime Infrastructure Acquisition Corp (Pre-Deal)
.51% ~ $ 9.88 | BNNR – Banner Acquisition Corp. (Pre-Deal)
.44% ~ $ 10.19 | ADOC – Edoc Acquisition Corp (Announced)
.43% ~ $ 9.89 | DAOO – Crypto 1 Acquisition Corp (Pre-Deal)
.41% ~ $ 9.84 | RCAC – Revelstone Capital Acquisition Corp. (Pre-Deal)
.41% ~ $ 9.86 | PEPL – PepperLime Health Acquisition Corp (Pre-Deal)
.40% ~ $ 10.00 | CITE – Cartica Acquisition Corp (Pre-Deal)
.33% ~ $ 10.00 | PCX – Parsec Capital Acquisitions Corp. (Pre-Deal)
.31% ~ $ 11.17 | AGBA – AGBA ACQUISITION LIMITED (Announced)
.31% ~ $ 9.65 | CDAQ – Compass Digital Acquisition Corp. (Pre-Deal)
.31% ~ $ 9.70 | BWC – Blue Whale Acquisition Corp I (Pre-Deal)
.31% ~ $ 9.83 | ZING – FTAC Zeus Acquisition Corp. (Pre-Deal)
.30% ~ $ 9.90 | BRPM – B. Riley Principal 150 Merger Corp. (Announced)
.30% ~ $ 9.91 | VCXB – 10X Capital Venture Acquisition Corp. III (Pre-Deal)
.30% ~ $ 9.98 | ESAC – ESGEN Acquisition Corp (Pre-Deal)

Biggest Losers

-9.82% ~ $ 9.00 | BTNB – Bridgetown 2 Holdings Limited (Announced)
-7.20% ~ $ 70.29 | DWAC – Digital World Acquisition Corp. (Announced)
-4.40% ~ $ 9.55 | MOTV – Motive Capital Corp (Announced)
-2.10% ~ $ 9.80 | MTAC – MedTech Acquisition Corporation (Pre-Deal)
-1.97% ~ $ 11.43 | CFVI – CF Acquisition Corp. VI (Announced)
-1.29% ~ $ 9.92 | TETE – Technology Telecommunication Acquisition Corp (Pre-Deal)
-1.11% ~ $ 9.73 | TCOA – Trajectory Alpha Acquisition Corp. (Pre-Deal)
-1.08% ~ $ 10.98 | GGPI – Gores Guggenheim, Inc (Announced)
-.91% ~ $ 9.84 | SPAQ – Spartan Acquisition Corp. III (Announced)
-.90% ~ $ 9.95 | MCAF – Mountain Crest Acquisition Corp. IV (Pre-Deal)
-.69% ~ $ 10.11 | HUGS – USHG Acquisition Corp. (Announced)
-.60% ~ $ 9.92 | ACAB – Atlantic Coastal Acquisition Corp. II (Pre-Deal)
-.51% ~ $ 9.70 | LEGA – Lead Edge Growth Opportunities, Ltd (Pre-Deal)
-.50% ~ $ 9.93 | ARGU – Argus Capital Corp. (Pre-Deal)
-.49% ~ $ 10.10 | IPOF – Social Capital Hedosophia Holdings Corp VI (Pre-Deal)
-.41% ~ $ 9.66 | CORS – Corsair Partnering Corporation (Pre-Deal)
-.41% ~ $ 9.72 | BRIV – B. Riley Principal 250 Merger Corp. (Pre-Deal)
-.41% ~ $ 9.74 | KIII – Kismet Acquisition Three Corp. (Pre-Deal)
-.40% ~ $ 9.85 | EVE – EVe Mobility Acquisition Corp (Pre-Deal)
-.40% ~ $ 9.90 | OCA – Omnichannel Acquisition Corp (Pre-Deal)

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(Disclaimers: this is not investment advice. The author may be long one or more stocks mentioned in this report.)

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