In SPAC news this week, Benessere Capital Acquisition and eCombustible Energy announced that the companies have entered into a definitive business combination agreement.
BENESSERE, ECOMBUSTIBLE MERGER: Benessere Capital Acquisition (BENE) and eCombustible Energy announced that the companies have entered into a definitive business combination agreement, providing for a business combination that will result in eCombustible Energy becoming a public listed company, subject to regulatory and stockholder approval and other customary closing conditions. Upon completion of the proposed transaction, the combined company is expected to operate under the name eCombustible Energy Corp. and list on Nasdaq Capital Market under the ticker symbol (ECEC). Under the terms of the proposed transaction, a newly formed successor to Benessere will issue shares of its common stock with an aggregate value of $805M, subject to adjustment, to current security holders of eCombustible Energy upon the closing of the proposed transaction. These eCombustible Energy security holders may also receive, subject to the terms of the business combination agreement, up to an additional 59 million shares of Benessere common stock based on the daily volume weighted average share price of the combined company's common stock in any 20 trading days within a 30 trading day period beginning on the closing of the transaction and ending on the 30-month anniversary of the closing, as follows: 29.5 million shares if the share price exceeds $12.50 prior to such 30-month anniversary and an additional 29.5 million shares if the share price exceeds $15.00 prior to such 30-month anniversary. The transaction is subject to approval by stakeholders of Benessere and eCombustible Energy and other customary closing conditions, including applicable regulatory approvals.
GRIID TALKS: Bitcoin miner Griid Infrastructure is in talks to go public through a merger with a special purpose acquisition company, Bloomberg's Gillian Tan reported, citing people familiar with the matter. A transaction with the blank-check firm, Adit EdTech Acquisition Corp. (ADEX), would value the combined entity at more than $3 billion, one of the people said.
ANALYST COVERAGE INITIATIONS:
On November 22, Benchmark analyst Josh Sullivan initiated coverage of NextGen Acquisition Corp. II (NGCA) - which is in the process of merging with Virgin Orbit - with a Buy rating and $16 price target. After deal completion, the combined company will retain the Virgin Orbit name and is expected to be listed on Nasdaq under the ticker symbol "VORB," the companies have stated. Virgin Orbit operates a mobile space launch system and space data-analytics platform whose key differentiator is an extreme level of launch flexibility in timing and geographic location, all at lower cost, Sullivan tells investors. Virgin Orbit plans to use its low-cost launch basis to build a space services platform that he believes will be a consolidator and scale effectively, Sullivan added.
On November 23, Capital One analyst Richard Tullis initiated coverage of Spartan Acquisition Corp. III (SPAQ) - which has announced a business combination with Allego - with an Overweight rating and $17 price target. Allego is a European chargepoint owner and operator with over 21,000 public charging ports and his valuation and estimates are based on the combined company, to be listed on the NYSE under the ticker "ALLG," Tullis noted. He expects EBITDA margins will build to 30% by 2025 as utilization increases, Tullis added.
SPAC IPOS THIS WEEK:
"On the Fly: The Week in SPAC News" is The Fly's new recurring series of stories on the latest SPAC initial public offerings, SPAC deal news, and associated analyst commentary.
Benessere Capital Acquisition
-0.625 (-5.55%)
Adit EdTech Acquisition
-0.06 (-0.60%)
NextGen Acquisition Corp. II
-0.15 (-1.46%)
Allego
+
Spartan Acquisition Corp. III
-0.03 (-0.30%)
Virgin Orbit
+
Beard Energy Transition Acquisition
+ (+0.00%)
Mana Capital Acquisition
+
Vahanna Tech Edge Acquisition I
+
Legato Merger Corp. II
+
8i Acquisition 2
+