Nightcap: 6 months after Lucid Motors entered the SPAC world with a bang, the company will leave it
Nightly recap of the day's SPAC highlights (July 21, 2021)
Good evening,
Thanks for reading the “Nightcap”, a nightly recap of the highlights in the SPAC world. You can always discover and track all of the SPACs at spactrack.net.
Churchill Capital Corp IV (CCIV: $23.43) will hold its shareholder meeting tomorrow to approve its merger with Lucid Motors. The SPAC has had quite the wild ride over the past 6 months. Here is a brief timeline:
January 11th: Bloomberg reports that CCIV is in talks to merge with Lucid at a valuation of around $15B. The stock closes the day at $13.20 (up ~31.6% from the previous close).
February 16th: Reuters reports that CCIV is nearing a deal with Lucid at a valuation of around $12B, as Klein, CCIV’s sponsor, launches the PIPE financing. The stock closes at a whopping $52.70 (up ~31.8% from the previous close).
February 18th: During intraday trading, CCIV reaches an all-time high of $64.86 and closes at $58.05.
February 22nd: CCIV closes the day at $57.37. The definitive agreement is announced in the evening with a Pro-forma equity valuation of $24B (using the PIPE price of $15 per share). At CCIV’s closing price of $57.37, the implied market cap of Lucid Motors was appx $92B.
February 23rd: The stock opens at $35.02, or appx 39% lower than the previous close.
May 13th: CCIV hits its all-time low of $17.25.
The stock has rebounded since, closing today at $23.43. At today’s share price, Lucid Motors’ implied market cap is appx $37.5B.
Assuming no redemptions, Lucid will have roughly $4.6B in gross proceeds — from CCIV’s trust (~$2.1B) and the PIPE ($2.5B) — which the company expects will fund the business through 2022 at least.
The Stats:
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The Deals (2):
1) Power & Digital Infrastructure Acquisition Corp. (XPDI: $9.93) & Core Scientific
Core Scientific, The Largest Blockchain Hosting Provider And Digital Asset Miner In North America, To List On NASDAQ Through Merger With Power & Digital Infrastructure Acquisition Corp. (Press Release)
Merger Partner Description:
Core Scientific provides high-performance infrastructure that powers the world's leading blockchain companies. Using state-of-the-art facilities, patent pending technology and best-in-class hosting solutions, Core Scientific is primed to power leading edge servers for large scale operations while working to develop enterprise software solutions for the most complex Blockchain challenges.
Valuation: $4.31B Pro-forma EV
PIPE: None
Core Scientific Investor Presentation
2) MDH Acquisition Corp. (MDH: $9.66) & Olive.com and PayLink Direct
Olive.com, the Unrivaled Leader in Payment Services and Online Vehicle Protection Plans, to Go Public in Business Combination with MDH Acquisition Corp. (Press Release)
Merger Partner Description:
Olive.com, the leader in payment services and online vehicle protection plans, was built to give customers peace of mind. Vehicle protection plans cover mechanical failure of the vehicle after the manufacturer’s warranty has expired. Olive.com’s digital platform has created a wave of new consumer buyers to the vehicle protection plan market with over 59% of its customers being first time buyers. Consumers are now able to buy a vehicle protection plan, on their own terms and in the comfort of their home through Olive.com.
Valuation: $1.18B Pro-forma EV
PIPE: $15M
Olive.com Investor Presentation
Deal News:
Zoom Is in Talks to Invest in Cvent Blank-Check Deal (Bloomberg article behind paywall)
Zoom Video Communications Inc. is in talks to invest in the blank-check deal that would take event-management software company Cvent public, according to people familiar with the matter.
Dragoneer Growth Opportunities Corp. II (DGNS: $9.85) is in discussions with potential investors including the video-chat platform about a private placement to support a deal with Cvent, said the people, who asked to not be identified because the matter isn’t public.
Zoom is negotiating to take a roughly 10% portion of the equity being raised for the deal, one of the people added. A deal, which could still fall apart, could be announced in the coming days, the people said.
The bet would fit with Zoom’s live events strategy. On Wednesday, it unveiled Zoom Events, a platform for hosting and managing virtual events. Zoom’s software can be integrated with Cvent’s, according to Cvent’s website, while Zoom’s website shows that Cvent is a corporate customer as well.Zoom has been stepping up its dealmaking recently. The company, whose online conferencing services took off during the Covid-19 pandemic, agreed to acquire Five9 Inc. for $14.7 billion this week.
Quick News Corner:
Tuscan Holdings Corp (THCB: $10.95) shareholders approved the merger with Microvast
10X Capital Venture Acquisition Corp (VCVC: $10.26) shareholders approved the merger with REE Automotive
CM Life Sciences, Inc. (CMLF: $12.48) shareholders approved the merger with Sema4
Revolution Acceleration Acquisition Corp (RAAC: $9.30) completed its merger with Berkshire Grey. Will begin trading as BGRY tomorrow.
Property Solutions Acquisition (PSAC: $13.78) completed its merger with Faraday Future. Will begin trading as FFIE tomorrow.
New S-1s (2)
1) Alpine Acquisition Corp. (REVE)
$100M, 1/2 warrant
Focus: Drive-to destination hotels, digital entertainment and gaming, and lodging technology
Advisors:
Jeffrey Pollack (CEO of XFL)
2) Aetherium Acquisition Corp (VIEDA)
$100M, 1/2 warrant
Focus: Education, training, and EdTech in China and other Asian countries
Upcoming Dates:
This Week’s Announced Shareholder Meetings, Unit Splits, Warrant Redemptions
Thursday, July 22nd
Merger Meeting: Churchill Capital Corp IV (CCIV: $23.43) & Lucid Motors
Unit Split: Lakeshore Acquisition I Corp. (LAAA-U: $10.22)
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