Momentus makes it out against all odds and Lordstown pivots to a leasing model (of warehouse space)
The Nightcap newsletter: SPAC Track’s nightly recap of the action in the SPAC world. (August 11, 2021)
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The Stats:
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The Deals:
1) European Sustainable Growth Acquisition Corp. (EUSG: $9.84) & ADS-TEC Energy
Merger Partner Description:
ADS-TEC Energy is a company of ADS-TEC group, and is part-owned by BOSCH Thermotechnik GmbH. The Company is headquartered in Nürtingen near Stuttgart (Germany), with a production site near Dresden (Germany). ADS-TEC Energy is drawing on decades of experience with lithium-ion technologies, storage solutions and fast charging systems, including the corresponding energy management systems. Its new fast charging technology for electric vehicles has the potential to be transformative and features a unique compact design. An exceptional high integration depth enables high quality and functionality of the produced battery technology. Apart from the cells, all its components are developed and produced in-house. ADS-TEC Energy's high development depth and vertical integration makes it a valuable partner for automotive, OEMs, utility companies, and charge-operators.
Valuation: $580M Pro-forma Market Cap
PIPE: $156M including investments from Invesco, APG, Swedbank Robur, Bosch, and Polar Structure
ADS-TEC Energy Investor Presentation
Deal News:
China's tech crackdown thwarts Pony.ai's U.S. listing plans -sources (Reuters)
Autonomous driving startup Pony.ai has put on hold plans to go public in New York through a merger with a blank-check firm at a $12 billion valuation, after it failed to gain assurances from Beijing that it would not become a target of a crackdown against Chinese technology companies, people familiar with the matter said.
The decision makes Pony.ai one of the biggest companies to suspend its U.S. listing plans after China banned ride-sharing giant Didi Global Inc from signing up new users just days after its blockbuster initial public offering (IPO) in June.
It followed up with crackdowns on other Chinese technology firms over concerns about the safety of user data, which led to some companies, such as LinkDoc Technology and Hello Inc, scrapping their U.S. listing plans.
…
It was concerned that the Chinese regulators could take action if it proceeded with a U.S. stock market debut, even through merging with a special-purpose acquisition company (SPAC) instead of an IPO, the sources said. Details of Pony.ai's discussions with the Chinese authorities could not be learned.
Pony.ai had been in exclusive talks to go public through a merger with VectoIQ Acquisition II (VTIQ: $9.67). The deal would have been financed with a private placement from investors of roughly $1.2 billion, and the company had aimed to list by October, according to the sources.
A spokesperson for Pony.ai said the company has no current plan or timeline to go public and declined to comment on the talks. The Cyberspace Administration of China, which has been leading the crackdown on technology companies such as Didi, did not immediately respond to a request for comment. VectoIQ declined to comment.
Lordstown eyes contract manufacturing, leasing space at its Ohio plant (Reuters)
Lordstown Motors Corp (RIDE: $5.58), which previously warned it needs to raise additional funding, hung the “open for business” sign on its northeastern Ohio plant on Wednesday, saying it was in talks to build vehicles for other automakers or lease space in the factory.
Shares of the electric vehicle startup, which also said it will begin limited production of its Endurance pickup truck in late September, rose 6.1% in after-hours trading.
“We are exploring multiple partnership constructs. That includes contract manufacturing, that includes licensing,” Chairwoman Angela Strand said on a conference call with analysts. “We’re discussing with multiple (automakers) who are interested in exploring how they can leverage the assets that we have.”
“This is a critical, strategic pivot for us,” she added. “A decision that we believe will lead to significant new revenue opportunities.”
Lordstown, which also on Wednesday announced a second-quarter loss, said its plant in the northeastern part of the state is ready and that retooling of stamping, assembly, body and paint shops has been completed. It also said the electric battery line is fully commissioned.
Lordstown will begin shipping the Endurance to select early customers in the first quarter of next year, followed by wider commercial deliveries in the second quarter, she said. Production will increase steeply in the second half of 2022.
Strand said while Lordstown will initially target commercial customers, the Endurance also will appeal to consumers.
Lordstown President Rich Schmidt said the Endurance uses only 30% of the plant’s 6.2 million square feet, so there is room for others to build vehicles there or for Lordstown to build them. Other options could include selling batteries or EV platforms to other automakers, he said.
Electric air taxi start-up Joby Aviation surges in trading on NYSE after SPAC merger (CNBC)
Shares of electric aircraft maker Joby Aviation (JOBY: $13.40) surged more than 20% after opening at $10.62 in their first day of trading on the New York Stock Exchange after the company’s SPAC merger.
Founded in 2009 by CEO JoeBen Bevirt, the start-up wants to make air travel cleaner and quieter, and is offering an electric alternative to traditional planes or helicopters for short hops.
The company aims to bring its electric vertical takeoff and landing aircraft, known in the industry as an eVTOL, into service in 2024. The company brought one of its aircraft to park in front of the New York Stock Exchange on Wednesday to mark the occasion. According to the company, its eVTOL can transport four passengers and a pilot, flying up to 150 miles on a single charge with a cruising speed of 200 mph.
Joby Aviation went public by merging with a blank-check company called Reinvent Technology Partners, which is run by LinkedIn co-founder Reid Hoffman and Zynga founder Mark Pincus. While the shares were previously listed under the ticker RTP for the special purpose acquisition company, Joby Aviation now trades under JOBY and JOBY WS.
The SPAC deal will bring Joby more than $1 billion, which the company intends to use to earn Federal Aviation Administration certifications, build electric aircraft and make its air taxi service operational in the U.S.
Quick News Corner:
Stable Road Acquisition Corp. (SRAC: $10.20) & Momentus shareholders approve the merger with 20% of public shares redeemed. The merger is set to complete tomorrow with SRAC starting to trade as MNTS on Friday the 13th.
New Beginnings Acquisition Corp. (NBA: $10.09) shareholders approve the merger with Airspan Networks
Consonance-HFW Acquisition Corp. (CHFW: $9.79) completes business combination with Surrozen. Set to trade as SRZN tomorrow
SC Health Corp (SCPE: $15.84) completes business combination with Rockley Photonics. Set to trade as RKLY tomorrow
QualTek and Roth CH Acquisition III Co. (ROCR: $9.88), whose merger was announced 6/16, issued revised guidance for 2021 and filed an addendum to the investor presentation ahead of the merger
AppHarvest’s (APPH: $8.51 -28.9%) SPAC forecasts go splat (FT—behind paywall)
IPOs to Begin Trading Tomorrow (3)*:
1) AfterNext HealthTech Acquisition Corp. (AFTR-U)
$250M, 1/3 warrant
Focus: Healthcare Tech
2) PHP Ventures Acquisition Corp. (PPHP-U)
$50M, 1/2 warrant, 1 R (1/10th of a share)
Focus: Consumer-facing companies with a significant Africa presence or a compelling Africa potential
Overfunded trust ($10.10)
3) Oxbridge Acquisition Corp. (OXAC-U)
$100M, 1 warrant
Focus: Disruptive Tech: InsurTech, blockchain, and artificial intelligence
Overfunded trust ($10.15)
*Priced at the time of this writing
New S-1s:
1) Insight Acquisition Corp. (INAQ)
$240M, 1/2 warrant
Focus: FinTech (or financial services industry with an enterprise value of approximately $750 million to $1.5 billion)
Upcoming Dates:
This Week’s Announced Shareholder Meetings, Unit Splits, Warrant Redemptions
Thursday, August 12
Merger Meetings:
CF Finance Acquisition Corp. III (CFAC: $9.81) & AEye
Software Acquisition Group Inc. II (SAII: $9.20) & Otonomo
Friday, August 13
Merger Meeting: NavSight Holdings, Inc. (NSH: $9.60) & Spire
Unit Split: Coliseum Acquisition Corp. (MITA-U: $9.85)
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