SPAC Market Review – November 2022

by | Dec 7, 2022

Extensions, liquidations, deals and cancellations were abound in November. Below we take a look at the month’s activity in the SPAC market.

SPAC Redemptions Remain Sky High

Among the continuous themes in SPAC land these days is that SPAC redemptions remain sky high. Average redemptions for completed SPACs ticked in at over 83% in November, below October’s all-time high of 95%, though still at a ridiculous level that signals investors have no interest in owning the deSPAC’d company. In current market conditions the only SPAC capital staying in is seemingly part of a non-redemption (paid) agreement, or locked up sponsor capital.

SPAC Liquidations are Accelerating, Fast

At the current pace December will smash the record for SPAC liquidations. Currently there are 27 officially set to throw in the towel, adding 16 from November we are sure to see over 70 SPACs call it quits this year alone.

Early liquidation votes continue to come in at a blistering pace as well. While this nuance (see excise tax) might potentially go away, we are still set up for a very active December in early liquidations.

Several SPACs are still kicking the can with maturity extensions. But, now that the liquidation dam has been burst many will choose not to fund extensions and simply call it quits.

The Great SPAC Maturity Wall

SPAC maturities are fast approaching as we end the year. The great maturity wall of Q1 is staring down at 230+ SPACs currently set to expire within the Q1 2023 timeframe. This number will likely decrease slightly due to extensions and early liquidations, but that will be on the margins and not change the fact that ~200 SPACs will likely be gone by the time we hit April.

SPAC Merger Activity

Despite all the talk about extensions and liquidations, 23 SPACs managed to get definitive agreements announced in the month, just slightly below October’s 26.

SPAC Deal Announcements in November 2022

SPAC Deals Terminated in November 2022

The 23 additional DAs were offset by 3 terminations which, frankly, have been at a more abated pace lately. With high profile deals like Circle/Concord, it’s not looking good at the moment for crypto-related SPAC deals.

November’s terminated SPAC transactions

SPAC IPOs, Nothing to See Here

Not much to see here, just a single $57.5M issuance for Plutonian Acquisition Corp. SPAC IPOs aren’t looking like there is a comeback in the near term.

<a href="https://www.boardroomalpha.com/author/draps/" target="_self">David Drapkin</a>

David Drapkin

Spent his formative years at Goldman Sachs and now embraces the start-up life in NYC. A long suffering Oakland (Las Vegas) Raiders fan and graduate of the Wharton School at the University of Pennsylvania. Semi-professional go-kart racer waiting for his shot.

Know Who Drives Return

Objective, data-driven assessments for every public company director and officer.

SPAC Analytics & Database

Comprehensive research and analytics on every SPAC, sponsor, and deal. Real-time alerts, yields, red flags, filings, investors, and much more. API access to institutional grade SPAC database.

Monthly SPAC Review

SPAC Market Review – December 2022

December’s SPAC market review takes a look by the numbers of the month’s SPAC activity and how the market currently stands going into 2023.

SPAC Research & Analysis

Boardroom Alpha Digest: Wed, Feb 1

Fedex Corp. (FDX) announced it would be laying off ~10% of its corporate workforce and Ryan McInerney officially takes over at Visa (V).

Know Who Drives Return Podcast

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.