The Nightcap from SPAC Track
Nightly recap of the day's SPAC highlights (May 19th, 2021)
May 19th, 2021
Good evening,
Thanks for reading “The Nightcap”, a nightly recap of the highlights of the SPAC world. You can always discover and track all of the SPACs at spactrack.net.
The Stats:
The Deals:
None today.
Deal News Reports:
1) MedTech Acquisition Corp. (MTAC) is in talks to merge with Memic Innovative Surgery.
Robotics Firm Memic Is in Talks to Go Public Via SPAC (Bloomberg— behind paywall)
Memic in April said it had raised $96 million from investors including Peregrine Ventures and Ceros, with participation from OurCrowd and Accelmed. It said at the time that funding would support the commercialization of its Hominis robotic-assisted surgical platform in the U.S. and potentially offshore.
The Tel Aviv-based company, led by co-founder and Chief Executive Officer Dvir Cohen and Chairman Maurice R. Ferre, in February received de novo marketing authorization for its Hominis system from the U.S. Food and Drug Administration for use in certain types of surgical procedures, including benign hysterectomies. The platform has miniature robotic arms, which the company says provide human-level dexterity and essentially replicate the motions performed by surgeons.
2) Omnichannel Acquisition Corp. (OCA) is in talks to merge with Kin Insurance.
‘Shark Tank’ Judge’s SPAC in Talks to Merge With Insurer (Bloomberg— behind paywall)
Home-coverage startup Kin Insurance is in talks to go public via Omnichannel Acquisition Corp., a special purpose acquisition company led by recurring “Shark Tank” guest judge Matt Higgins, according to people with knowledge of the matter.
The combined entity is set to be valued at over $1 billion, one of the people said. Terms could change and as with all transactions that aren’t yet finalized, it’s possible talks could collapse. A deal, if agreed, could be announced next month, one of the people said.
Representatives for Omnichannel and Kin declined to comment.
Chicago-based Kin says it offers affordable coverage in “catastrophe-prone” regions including California, Florida and Louisiana directly to consumers online. It is led by co-founders Sean Harper, the chief executive officer, and Lucas Ward, who is president and chief technology officer.
Kin raised $63.9 million in a recent funding round from investors including Senator Investment Group, Hudson Structured Capital Management, the University of Chicago’s startup investment program, Allegis NL Capital and Alpha Edison. Earlier backers include August Capital and Commerce Ventures.
The insurer recently said it surpassed $100 million in annual recurring premium after just 21 months as a carrier in an industry that still sees more than 90% of home coverage sold through brick-and-mortar agencies.
New S-1 Filings:
1) TenX Keane Acquisition (TENK)
$50M, 1 R (1/10)
Focus: Asia
Notable SPAC News:
1) French Hotelier Accor Is Said to Weigh SPAC Listing This Year (Bloomberg— behind paywall)
French hotel company Accor SA is weighing listing a special purpose acquisition company that could target a deal in sectors including lifestyle and leisure, according to people familiar with the matter.
Accor is speaking with advisers about listing a SPAC in Europe as soon as this year, the people said, asking not to be identified as the details aren’t public. Accor is considering raising 200 million euros ($244 million) to 300 million euros, one of the people said.
2) Nikola execs play the long game and take $1-a-year post-SPAC salaries (Freightwaves)
Nikola Corp. CEO Mark Russell and other top executives of the startup electric truck company are playing the long game, accepting $1 a year in salaries and stock-based compensation that could bring huge payouts if the scandal-battered shares regain value.
The company’s proxy statement issued Wednesday shows that all executive compensation is at risk for three years. But if the stock returns to $55 a share by then, CEO Mark Russell could realize a $2.2 billion payout. Other named executives could receive tens of millions.
“We believe the best measure of our performance is how we are valued over the long term,” according to the proxy. “To focus our executives on the achievement of key initiatives and reward them with the creation of long-term value, we pay them primarily with restricted stock unit awards that have long vesting periods.”
3) Wisk Aero files injunction in trade secret lawsuit against Archer Aviation (TechCrunch)
Electric aviation company Wisk Aero filed a motion for a preliminary injunction Wednesday in its ongoing lawsuit with rival electric air travel startup Archer Aviation. The injunction could put a serious wrench in Archer’s operations should the courts approve it.
Wisk has asked the court to immediately prohibit Archer from using 52 trade secrets that it alleges were stolen by former employees who were later hired by Archer. The trade secrets “span the gamut of systems within the aircraft and processes for development,” a Wisk spokesperson told TechCrunch.
“This a baseless motion in a baseless lawsuit,” an Archer spokesperson told TechCrunch. “Archer independently designed its aircraft, before any employees from Wisk joined Archer, and Archer looks forward to demonstrating that in court. Archer is moving forward with its business plans, including the development, certification and production of its proprietary aircraft.”
4) No pain, no gain for big funds hunting the next Tesla (Reuters)
Of the 32 companies analysed by Reuters, 17 are doing or have done reverse mergers via special purpose acquisition companies (SPACs) often referred to as blank-check companies. Of the remaining 15, six are private with the rest publicly listed. Of the four big fund managers, T. Rowe Price has not invested in any of the EV-related SPACs.
The market drop is particularly prevalent among those startups that have gone public through reverse mergers. From late April to mid-May, the market cap of Lordstown Motors plunged 32%, while battery company QuantumScape fell 29% and infrastructure company ChargePoint was down 24%.
During the same period, Tesla's value declined 23%
Upcoming Dates:
This Week’s Shareholder Meetings and Unit Splits (common shares and warrants to commence trading separately from underlying units)
Thursday, May 20th
Unit Splits: Tribe Capital Growth Corp I (ATVC)
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