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Understanding the SPAC Space

  • Understanding the SPAC Space Understanding the SPAC Space 1:09
6:38 a.m. Aug. 25, 2021 - By Tomi Kilgore
Rocket Labs stock tumbles on first day under new name, tickerThe company now named Rocket Lab USA Inc. didn't get a warm reception on Nasdaq, even after Chief Executive Peter Beck rang the Nasdaq's Opening Bell, as the between special purpose acquisition company (SPAC) Vector Acquisition Corp., with a previous ticker of "VACQ," and Rocket Lab was completed. Shares of the spacecraft and rockets builder, under the new ticker symbol "RKLB," tumbled 11.7% in morning trading, after they soared 15.6% over the past three days to close Tuesday at the highest price since March 31. Rocket Lab said Wednesday that it will receive $777 million in proceeds as the merger is completed, which it plans to use to accelerate growth in its space systems business. Meanwhile, shares of space travel company Virgin Galactic Holdings Inc. slipped 0.6% in morning trading, while the Nasdaq Composite gained 0.1% toward a record and the S&P 500 tacked on 0.1%.
3:30 a.m. Aug. 23, 2021 - By Tomi Kilgore
Virgin Orbit to go public valued at $3.2 billion through merger with SPAC NextGen Acquisition Corp. IIVirgin Orbit is set to go public, as the launch and space solutions company announced Monday a merger agreement with special purpose acquisition company (SPAC) NextGen Acquisition Corp. II in a deal that values Virgin Orbit at about $3.2 billion. The deal is expected to provide the combined company with proceeds of $483 million in cash. Once the deal closes, which is expected to occur around the end of the year, the company will be named Virgin Orbit and the stock is expected to list on the Nasdaq exchange under the ticker symbol "VORB." NextGen's stock, which started trading in May, rallied 3.9% in premarket trading Monday. Virgin Orbit's current shareholders consist of Richard Branson's Virgin Group, which is also involved in Virgin Galactic Holdings Inc. , and Mubadala Investment Co., as well as management and employees. Boeing Co. has committed to invest in Virgin Orbit, according to . NextGen's stock has edged up 0.1% over the past three months while the S&P 500 has gained 6.9%.
4:50 a.m. Aug. 13, 2021 - By Tomi Kilgore
WeWork's Q2 net loss widens from a year ago but is less than half that of Q1 as recovery acceleratesWeWork reported Friday a second-quarter net loss that widened slightly from a year ago, but was less than half that of the first-quarter, as the flexible-office-space company said recovery trends that started earlier this year accelerated. by way of a merger with special purpose acquisition company (SPAC) BowX Acquisition Corp. WeWork reported a net loss of $888.85 million for the quarter ended June 30, compared with a loss of $863.83 million in the year-ago period but down from . Revenue fell 32.7% from a year ago to $593.48 million, and was down slightly from $598 million in the first quarter, but the company said revenue increased sequentially each month in the second quarter. The company expects third-quarter revenue to improve to $650 million to $700 million. "Regardless of how companies are thinking about the future of work, access to a space to collaborate, innovate, mentor and build culture remains critical," said Chief Executive Sandeep Mathrani. "The demand from businesses of all sizes accelerated through the quarter and steadily continued into July, delivering strong sales momentum that will drive occupancy and revenue growth." BowX Acquisition's stock edged up 0.1% in premarket trading.
5:15 a.m. Aug. 6, 2021 - By Tomi Kilgore
Sphere 3D stock rockets after deal for rights to bitcoin mining agreementsShares of Sphere 3D Corp. soared 54.4% on heavy volume to pace all premarket gainers Friday, after the stand-alone storage and technologies company announced an agreement that provides a six-month exclusive right to assume all of Hertford Advisors Ltd.'s rights to bitcoin mining agreements. Trading volume spiked to 14.3 million shares ahead of the open, already more than double the full-day average of about 5.6 million shares. As part of the deal, Sphere 3D can purchase up to 60,000 new bitcoin mining machines, with deliveries to begin in November 2021 and continue over the course of 10 months. "We are pleased to have the opportunity to place Sphere 3D as a leader in the space with state of the art miners, in a very competitive market where time to delivery is paramount," said Sphere 3D Chief Executive Peter Tassiopoulos. The stock's surge comes on a day that bitcoin inched up 0.1% and the futures for the S&P 500 were little changed.
4:15 a.m. Aug. 3, 2021 - By Jaimy Lee
Sanofi to buy mRNA developer for $3.2 billionShares of Translate Bio Inc. soared 29.8% in premarket trading on Tuesday after Sanofi said it will spend $3.2 billion to buy the developer of messenger RNA (mRNA) technologies. The U.S.-listed shares of Sanofi were down 0.1% in premarket trade. "A fully owned platform allows us to develop additional opportunities in the fast-evolving mRNA space," Sanofi CEO Paul Hudsons said in a statement. Investors are paying much closer attention to mRNA developments since the mRNA COVID-19 vaccines developed by Moderna Inc. and BioNTech SE /Pfizer Inc. have been authorized. Sanofi and Translate are also developing a mRNA COVID-19 vaccine; the experimental shot is currently in a Phase 1/2 clinical study. "Given the early stage of TBIO's platform, and the company's recent pivot into vaccines, the deal terms strike us as favorable for SNY and fair for TBIO," SVB Leerink's Geoffrey Porges told investors on Tuesday. So far this year, Translate's stock has gained 58.1% and Sanofi is up 5.5%. The S&P 500 has gained 17.0%.
4:01 a.m. May 10, 2021 - By Ciara Linnane
UPDATE: Trulieve agrees to acquire Harvest Health in all-stock cannabis deal valued at about $2.1 billionTrulieve Cannabis Corp. said Monday it has reached an agreement to acquire Harvest Health & Recreation Inc. in an all-stock deal valued at about $2.1 billion. Under the terms of the deal, Harvest shareholders will receive 0.1170 of a subordinate voting share of Trulieve for each Harvest subordinate voting share owned. The exchange rate implies a price per Harvest share of $4.79, equal to a 34% premium over its closing price Friday. Harvest shareholders will own about 26.7% of the issued and outstanding pro forma Trulieve shares once the deal closes. Trulieve is a cannabis multi-state operator with a focus on the northeast and southeast regions of the U.S., while Harvest Health is focused on the west coast and northeast regions. The new entity will have operations in 11 states with 22 cultivation and processing facilities with a total capacity of 3.1 million square feet and 126 dispensaries serving the medical and adult-use recreational cannabis markets. "Harvest provides us with an immediate and significant presence in new and established markets and accelerates our entry into the adult use space in Arizona," said Trulieve CEO Kim Rivers in a statement. Harvest shares jumped 12.3% premarket and have gained 66% in the year to date, while the Cannabis ETF has gained 41.6% and the S&P 500 has gained 12.7%.
3:41 a.m. April 29, 2021 - By Tomi Kilgore
CenterPoint Energy stock gains after $2.15 billion deal to sell Arkansas, Oklahoma gas assetsShares of CenterPoint Energy Inc. gained 0.3% in premarket trading Thursday, after the Texas-based electric and gas utility announced a deal to sell its Arkansas and Oklahoma natural gas local distribution company (LDC) assets for $2.15 billion in cash to Summit Utilities. The assets include about 17,000 miles of pipeline. CenterPoint said the proceeds from the sale include $1.725 billion in cash and $425 million in cash unrecovered storm costs. "This valuation represents a landmark multiple for the LDC space and is a clear testament of the premium utility assets in these two jurisdictions," said CenterPoint Chief Executive Dave Lesar. The stock has gained 10.6% year to date through Wednesday, while the SPDR Utilities Select Sector ETF has tacked on 4.6% and the S&P 500 has advanced 11.4%.
3:50 a.m. April 1, 2021 - By Tonya Garcia
Funko shares jump after acquisition launches the toy company into the NFT marketFunko Inc. shares jumped 13% in Thursday premarket trading after the toy and collectible company acquired a majority ownership stake in TokenWave, the company behind the TokenHead app and website that tracks non-fungible token (NFT) holdings. TokenHead is available on Android and iOS devices, currently displays more than 10 million NFTs and has more than 100,000 visits per day. Funko, known for its Pop dolls with oversized heads, will launch its NFT offerings in June, with a new one introduced each week at a starting price of $9.99. "Our strategy in this space is clear - bring the value-added NFT opportunity to our licensing partners to leverage our broad range of existing pop culture content across television, movies, sports, music, anime, video games and comic books," said Brian Mariotti, Funko's chief executive in a statement. Funko stock has skyrocketed 89.6% over the past three months, and is up nearly 414% over the last year. The S&P 500 index has gained 60.8% over the last 12 months.
2:23 a.m. March 26, 2021 - By Tomi Kilgore
WeWork to go public through merger with BowX Acquisition: WSJWeWork will be going public after the flexible office space company has agreed to merge with special purpose acquisition company BowX Acquisition Corp. in a deal valuing WeWork at $9 billion, including debt, according to . BowX shares rallied 4.8% in premarket trading. WeWork would raise $1.3 billion in the deal, including $800 million in private investment in public equity (PIPE) from Insight Partners, funds managed by Starwood Capital Group, Fidelity Management and others, the WSJ report said. In 2019, an investment from Japan-based technology investor Softbank Group Corp. had valued WeWork at $47 billion, the report said. An through a more traditional public offering had failed, as Adam Neueman resigned as chairman and chief executive and as WeWork closed locations and slashed its workforce as the COVID-19 pandemic sapped demand for office space. The WSJ had that WeWork was in talks with a SPAC associated with Bow Capital. BowX's stock, which went public in October 2020, has lost 5.1% year to date through Thursday, while the Renaissance IPO ETF has shed 6.4% and the S&P 500 has gained 4.1%.
2:58 a.m. March 1, 2021 - By Tomi Kilgore
Space data collection company Spire Global to go public through merger with SPAC NavSight HoldingsShares of NavSight Holdings Inc. rallied 6.4% in premarket trading Monday, after the special purpose acquisition company (SPAC) announced a merger that will take space-based data and analytics company Spire Global Inc. public. The deal, which is expected to close in summer 2021, values the combined company at $1.6 billion, and is expected to provide about $475 million in proceeds. Spire uses a constellation of nanosatellites called LEMUR (low earth multi-use receiver) to collect space-based data. The company uses "space-as-a-service" business model. Once the deal closes, the stock will list on the NYSE under the ticker symbol "SPIR." "[O]ur proprietary data and solutions help customers solve some of earth's greatest challenges, including Net Zero and Climate Change adaptation," said Spire Chief Executive Peter Platzer. NavSight's stock, which went public in November, has gained 6.4% over the past three months through Friday, while the Renaissance IPO ETF has advanced 7.1% and the S&P 500 has tacked on 4.1%.
2:44 a.m. March 1, 2021 - By Tomi Kilgore
Rocket Lab to go public in merger with SPAC Vector Acquisition, valuing company at $4.1 billionRocket Lab USA Inc. announced Monday it will be going public through an acquisition by special purpose acquisition company (SPAC) Vector Acquisition Corp. , in a deal that values the launch and space systems company at $4.1 billion. Vector Acquisition's stock soared 20.5% in premarket trading. After the merger closes, which is expected to occur in the second quarter of 2021, the company will be named Rocket Lab USA Inc. and the stock will trade on the Nasdaq under the ticker symbol "RKLB." The companies expect to have a cash balance of $750 million after the deal closes. Separately, Rocket Lab unveiled its medium-lift Neutron rocket, a reusable launch vehicle with an 8-ton payload lift capacity, to be used for mega constellations, deep space missions and human spaceflight. "Not only are we the leader in small launch, we are the second most frequently launched rocket in the U.S. annually and the fourth most frequent launcher globally," said Chief Executive Peter Beck. Vector Acquisition's stock, which went public in November, has gained 2.8% over the past three months, while shares of spaceflight services company Virgin Galactic Holdings Inc. have run up 31.3% and the S&P 500 has gained 4.1%.
10:06 a.m. Feb. 18, 2021 - By Tomi Kilgore
FirstEnergy's stock surges to lead S&P 500 gainers after Icahn discloses plan to buy a stakeShares of FirstEnergy Corp. shot up 9.5% toward a seven-month high in afternoon trading Thursday, enough to space the S&P 500's gainers, as investors seemed to focus more on billionaire activist investor Carl Icahn's plan to buy a stake in the electric utility than on the company's profit and revenue miss. The company disclosed in its 10-K filing with the Securities and Exchange Commission that it was notified that Icahn "has a present good faith intention to acquire voting securities" of the company, in an amount somewhere between $184 million and $919.9 million. The company said it didn't know if Icahn had already acquired shares or derivatives to buy shares, and doesn't know Icahn's intentions. Separately, the company reported fourth-quarter net earnings of $242 million, or 45 cents a share, after a loss of $111 million, or 20 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted EPS of 32 cents was below the consensus analyst estimate of 47 cents, according to FactSet. Revenue fell 7.4% to $2.5 billion, below the FactSet consensus of $2.9 billion. FirstEnergy's stock has tumbled 33.1% over the past 12 months, while the SPDR Utilities Select Sector ETF has lost 11.8% and the S&P 500 has gained 16.2%.
3:23 a.m. Jan. 21, 2021 - By Ciara Linnane
Boston Scientific to acquire Preventice Solutions for $925 million in cash, up to $300 million in potential milestone paymentsBoston Scientific Inc. said Thursday it has agreed to acquire privately held Preventice Solutions Inc. for an upfront payment of $925 million and up to $300 million in potential milestone payments. The company has been an investor in Preventice since 2015 and currently owns a 22% state. Preventice, which provides mobile cardiac services, including ambulatory cardiac monitors, had sales of $158 million in 2020, up 30% from the year-earlier period. "Cardiovascular disease is the leading cause of mortality globally, accounting for nearly 17.9 million annual global deaths and highlighting the need for early detection and management for individuals who may be at risk of a cardiac event," Boston Scientific said in a statement. The deal is expected to close by mid-2021 and to be immaterial to adjusted earnings in the first year, to boost adjusted earnings by at least one cent in 2022 and to be increasingly accretive after that. "This acquisition will provide Boston Scientific with a foothold in the high-growth ambulatory electrocardiography space, which strongly complements our recent entrance into the implantable cardiac monitor market and will serve as an important component of our category leadership strategy in cardiac diagnostics and services -- a nearly $2B market anticipated to grow double digits annually," said Scott Olson, Boston Scientific senior vice president and president, Rhythm Management, in a statement. Shares were up 0.9% premarket, but have fallen 17% in the last 12 months, while the S&P 500 has gained 16%.
1:36 p.m. Jan. 8, 2021 - Barrons.com
Understanding the SPAC Space Hyliion CEO Thomas Healy discusses his company's path to going public and why he opted to do so through a special-purpose acquisition company.
10:44 a.m. Dec. 21, 2020 - By Tonya Garcia
Rent-A-Center stock jumps 10% after $1.65 billion acquisition of fintech companyRent-A-Center Inc. shares jumped 10% in Monday trading after the lease-to-own provider announced it had entered into a definitive agreement to acquire Acima Holdings LLC, a fintech company in the lease-to-own space. Total consideration for the deal is $1.65 billion, including $1.273 billion in cash and 10.8 million shares of Rent-A-Center common stock currently valued at $377 million. Rent-A-Center has also received a $1.825 billion debt financing commitment from J.P. Morgan Securities LLC, Credit Suisse and HSBC Securities (USA) Inc. The transaction is expected to close during the first half of 2021. Acima was founded in 2013 in Salt Lake City and has grown to expected annual revenue of $1.25 billion in 2020. The Acima team will continue to operate out of the Salt Lake City office when the deal has closed. "From a financial standpoint, we expect the deal to be immediately accretive to adjusted EPS upon closing," said Mitchell Fadel, chief executive of Rent-A-Center, according to a FactSet transcript of a call with analysts about the deal. "Now, looking forward, we expect Acima to drive double-digit accretion to adjusted earnings per share in year one, with potential for more accretion in year two." Rent-A-Center says it deal positions the company to capitalize on the growing digital business. "In the past, we've spoken to an addressable market for virtual lease-to-own in the US of over $25 billion," said Jason Hogg, Rent-A-Center's executive vice president for preferred leasing. "We're updating that to $40 billion to $50 billion today as we believe our strategy to support a marketplace for consumer brands across stores and e-commerce increases the opportunity." Rent-A-Center stock is up nearly 37% over the past year while the S&P 500 index is up 14.8% for the period.
4:47 a.m. Dec. 14, 2020 - By Tomi Kilgore
Blackstone to pay $3.45 billion to Brookfield Asset management to buy lab office buildings Blackstone Group Inc. announced Monday a deal to buy lab office buildings from Brookfield Asset Management Inc. for $3.45 billion. Blackstone said about 90% of the office space being acquired is located in Cambridge, Massachusetts. The deal, which is expected to close in the first quarter of 2021, will make Blackstone the largest life science office owner in Cambridge. "This transaction illustrates Blackstone's continued conviction in the life sciences space both broadly, and within real estate, investing in best-in-class assets located adjacent to top-tier research and education institutions," said Nadeem Meghji, head of real estate Americas for Blackstone. Shares of Brookfield edged up 0.3% in premarket trading and Blackstone gained 1.6%, while futures for the S&P 500 tacked on 0.7%.
2:41 a.m. Oct. 26, 2020 - By Ciara Linnane
Blackstone Real Estate to acquire Simply Self Storage for about $1.2 billionBlackstone Real Estate Income Trust Inc. said Monday it has reached a deal to acquire Simply Self Storage from a Brookfield Asset Management real estate fund for about 1.2 billion. Simply Self Storage is a private owner of self-storage with eight million square feet across the U.S. The deal is expected to close before year-end and to make Blackstone Real Estate the third biggest private owners of storage space in the nation. "Simply Self Storage is a best-in-class company with significant potential for growth through future acquisitions in a highly fragmented sector, and similar to logistics, self-storage is a resilient sector through economic cycles because of low tenant turnover, minimal maintenance costs and stable cash flows," Frank Cohen, chief executive of Blackstone Real Estate said in a statement. Blackstone Real Estate is operated by a unit of Blackstone .
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