EXECUTIVE SUMMARY
- The last week saw the return of mega SPAC deals, with a SPAC announcing plans to take an online trading platform public, and the brand management business of an airline going public through a merger with a blank-cheque firm.
- Also, a SPAC switches merger targets, and Trump’s media firm gets sued by its co-founders. Read on to find out the latest about all things SPACs.
- New York-based online brokerage Webull is going public through a merger with SPAC SK Growth Opportunities Corporation in a deal valuing the firm at $7.3 billion.
DETAIL
The last week saw the return of mega SPAC deals, with a SPAC announcing plans to take an online trading platform public, and the brand management business of an airline going public through a merger with a blank-cheque firm. Also, a SPAC switches merger targets, and Trump’s media firm gets sued by its co-founders. Read on to find out the latest about all things SPACs.
SPAC Deals Announced
$SKGR Will Take Online Trading Platform Webull Public in $7.3 Billion Deal
- New York-based online brokerage Webull is going public through a merger with SPAC SK Growth Opportunities Corporation in a deal valuing the firm at $7.3 billion.
Founded in 2016 by Anquan Wang, who is a former employee of Alibaba and Xiaomi, Webull’s parent company, Fumi Technology, reached a valuation of over $1 billion after raising $150 million from undisclosed investors in 2021.
Webull introduced its platform in the U.S. in 2018, and saw a significant surge in activity during the Covid-19 pandemic, with $370 billion in equity volumes and 430 million options contracts being traded by the end of 2023.
According to CEO Anthony Denier, Webull attracts more active and advanced investors and differentiates itself from Robinhood by offering comprehensive analytical tools for trade decisions. The company briefly contemplated raising between $300 and $400 million through an IPO in 2021, but axed plans later.
The merger is anticipated to generate gross proceeds of about $100 million, with the deal anticipated to close sometime in the second half of the year, post which the combined company will list on the Nasdaq Stock Exchange.
$GMFI is Merging With AirAsia’s Brand Management Unit in $1.15 Billion Deal
- AirAsia is planning to take its brand management unit public on the Nasdaq through a SPAC merger with Aetherium Acquisition Corp, aiming to introduce its franchise and licensing opportunities.
AirAsia is exploring brand licensing opportunities in untapped markets like South Asia and Africa, involving sectors such as hotels, mobile services, and airlines, and plans to license its 14 other brands as well.
In 2001, Tony Fernandes acquired the struggling AirAsia for just 1 Malaysian ringgit and 40 million ringgit ($8.43 million) in debt, growing it into a fleet of over 240 aircraft.
Fernandes has instituted a plan to recover Capital A (AirAsia’s parent company) from its pandemic-induced financially distressed status by seeking capital for growth.
Part of this strategy involves selling AirAsia’s short-haul business to its sister company, Air Asia X, aiming for a unified Air Asia Group, which is targeting a $400 million equity raise.
$ALTU Terminates Picard Deal, Opts to Merge With Vesicor Therapeutics
- SPAC Altitude Acquisition Corp has opted to termite a previously announced merger with Picard Medical, instead opting to take Vesicor Therapeutics public in a $70 million deal.
Altitude Acquisition mutually terminated the merger with Picard on February 23rd and entered into a definitive agreement to merge with Vesicor on February 29th.
Picard Medical, which focuses on an FDA-approved artificial heart, had previously agreed to go public through a merger with Altitude in a $480 million deal.
Vesicor is a biopharmaceutical company based out of San Gabriel, California, that specializes in developing therapeutics based on microvesicles.
The deal with Altitude, which holds about $10.3 million in trust, can be canceled by either party if not finalized by October 1, with a possible extension to December 11 pending SEC approval.
SPAC Deal Updates
APRINOIA Sets Terms for IPO After $ROSS Deal Collapses
- Hong Kong’s APRINOIA Therapeutics is aiming to raise $24 million through an IPO of 2 million shares, priced between $10 and $14 each, following the collapse of its $320 million SPAC deal with Ross Acquisition II last August.
APRINOIA Therapeutics plans to list on the Nasdaq with the symbol APRL, with US Tiger Securities as the lead bookrunner.
After the deal fell through, Ross Acquisition II, which was founded by former commerce secretary Wilbur Ross, extended its deadline to March 16, leaving it with $54.2 million in trust.
Massachusetts-based APRINOIA Therapeutics specializes in treatments for neurodegenerative diseases like Alzheimer’s and progressive supranuclear palsy (PSP).
The company wants to use the funds from its IPO to commercialize a PET imaging tracer in China and its U.S. phase 1 trial for therapy against Alzheimer’s and other dementias.
SPAC News
TMTG Hit With Lawsuit by Co-Founders Alleging ‘Last-Minute Stock Grab’
- The co-founders of Trump Media & Technology Group are suing the company and Donald Trump, claiming they are trying to reduce their ownership with a “last-minute stock grab” amid rising legal costs for the former president.
UAV, holding an 8.6% stake in TMTG, is challenging the company’s decision to increase its share count from 120 million to 1 billion, a move they argue will unjustly dilute their ownership. The complaint also mentions a lock-up agreement that permits Trump to transfer his shares to family or a trust.
The urgency of this action, according to the filing, might be tied to Trump’s need to address over $500 million in civil judgments, suggesting the merger could significantly benefit him financially.
The lawsuit against TMTG complicates its efforts to go public, especially after a recent SEC approval to merge with DWAC following a two-year delay and regulatory investigations.
DWAC’s 2021 merger announcement with Truth Social’s operator, TMTG, has faced challenges, including an $18 million settlement over potential securities law violations during pre-listing discussions.
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Originally Posted March 3, 2024
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