The Nightcap: Short-Seller Hindenburg Publishes New Report Claiming Another FORMER SPAC is not in a Solid State
Nightly recap of the day's SPAC highlights (June 15th, 2021)
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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:
1) Decarbonization Plus Acquisition Corporation III (DCRC: $10.45) & Solid Power
Merger Partner Description:
Solid Power is an industry-leading producer of all-solid-state rechargeable batteries for electric vehicles and mobile power markets. Solid Power replaces the flammable liquid electrolyte in a conventional lithium-ion battery with a proprietary sulfide solid electrolyte. As a result, Solid Power's all-solid-state batteries are safer and more stable across a broad temperature range, can provide a 50-75% increase in energy density compared to the best available rechargeable batteries, enable cheaper, more energy-dense battery pack designs and are compatible with traditional lithium-ion manufacturing processes.
Valuation: $1.25B Pro-forma EV
PIPE: $165M including investments from Koch Strategic Platforms, Riverstone Energy Limited, Neuberger Berman funds and Van Eck Associates Corporation
Notable News:
DraftKings (DKNG: $48.51) stock falls after Hindenburg Research reveals short position (CNBC)
Shares of sports-betting firm DraftKings fell Tuesday after Hindenburg Research announced it had taken a short position against the stock.
The stock, which has been one of the best performers on Wall Street since going public through a merger with a special purpose acquisition company last year, closed 4.2% lower at $48.51 on Tuesday.
In the report, Hindenburg compares DraftKings’ valuation to that of rival firms and questions the company’s promotional spend and future potential in the highly competitive sports-gambling landscape.
The report also alleges that SBTech, a European technology company that merged with DraftKings as part of the SPAC deal, generates significant revenue from questionable gambling practices in overseas markets, particularly in some Asian markets.
DraftKings said in a statement that it was comfortable with SBTech’s business history.
“This report is written by someone who is short on DraftKings stock with an incentive to drive down the share price,” DraftKings said. “Our business combination with SBTech was completed in 2020. We conducted a thorough review of their business practices and we were comfortable with the findings. We do not comment on speculation or allegations made by former SBTech employees.”
Hindenburg is a relatively new short selling firm that has made several high profile calls against SPACs over the past year.
The firm took out short positions against clean-energy vehicle startups Nikola and Lordstown Motors, which have suffered from executive turnover and falling stock prices since Hindenburg’s reports.
Hindenburg also published a negative report against Clover Health in February but did not take a position. The stock fell in the months following that move but rebounded in early June amid increased interest from retail traders on Reddit.
Quick Merger Partner News Corner:
Artius Acquisition Corp (AACQ: $10.02, +0.4%) / Origin Materials announces Apollo to backstop up to $30M in redemptions & announces strategic alliance with Palantir
Vector Acquisition Corp (VACQ: $10.35 +1.27%): Rocket Lab wins NASA contract to design and build spacecraft for NASA Mars mission
Aspirational Consumer Lifestyle Corp. (ASPL: $9.96, +0.1%): Wheels Up launches Private Aviation Solution for Corporate Travel Needs, "Up for Business"
New S-1 Filings:
1) JATT Acquisition Corp (JATT)
$120M, 1/2 warrant
Focus: Life sciences space, particularly those utilizing the application of machine learning techniques and structure-based drug design to improve the therapeutic development process
S-1 Link: https://www.sec.gov/Archives/edgar/data/1855644/000110465921081549/tm2112336-2_s1.htm
2) Nova Vision Acquisition Corp. (NOVV)
$50M, 1/2 warrant
Focus: PropTech, FinTech, ConsumerTech, Supply Chain Management (in Asia)
S-1 Link: https://www.sec.gov/Archives/edgar/data/1858028/000149315221014450/forms-1.htm
IPOs to Begin Trading Tomorrow*:
1) Zimmer Energy Transition Acquisition Corp. (ZTAQ.U)
$300M, 1/3 warrant
Focus: Energy value chain in North America, with a focus on energy transition and sustainability
2) Rice Acquisition Corp. II (RONI.U)
$300M (upsized from $250M), 1/4 warrant
Focus: Energy Transition/ Sustainability
*Priced at the time of this writing
Upcoming Dates:
This Week’s Shareholder Meetings and Unit Splits (common shares and warrants to commence trading separately from underlying units)
Wednesday, June 16th
Crescent Acquisition Corp (CRSA: $10.02) Shareholder Meeting to Approve Business Combination with LiveVox
Thursday, June 17th
Hudson Executive Investment (HEC: $9.87) Shareholder Meeting to Approve Business Combination with Talkspace
Acies Acquisition Corp. (ACAC: $9.81) Shareholder Meeting to Approve Business Combination with Playstudios
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