Clarivate Finds ESG BFF in Impactive Capital – A Match Made for Analytics Heaven

Jupiter Wellness Gets SPAC-tacular with Successful De-SPACing of CJET on Nasdaq

TLDR:
Jupiter Wellness has de-SPACed and launched its sponsored SPAC, CJET, trading on Nasdaq, with 1.66 million shares and 144,000 CVRs. The company’s commitment to innovative growth strategies in health and wellness, and its product pipeline, represent a bold, innovative mission of health and wealth for its investors and shareholders.

Jupiter Wellness, a company with its head in the clouds, has successfully de-SPACed and launched its sponsored Special Purpose Acquisition Company (SPAC), now trading on Nasdaq under the ticker symbol CJET. This daring maneuver clearly demonstrates the company’s commitment to innovative growth strategies and broadening its investment portfolio. After all, who wouldn’t want a piece of a pie that covers hair loss, psoriasis, and vitiligo?

The de-SPAC process, which was completed on June 2, 2023, has left Jupiter with a whopping 1,662,434 million CJET shares and a generous side of 144,000 Conditional Stock Acquisition Rights (CVRs). These CVRs may entitle the company to receive up to 2.36 million additional shares, should the stars align in their favor. As of Monday’s close, CJET shares were trading at a celestial $5.90 per share.

Now, let’s not forget that Jupiter Wellness is a diversified company supporting health and wellness through research and development of over-the-counter (OTC) products and intellectual property. In layman’s terms, they’re metaphorically walking on water, hoping to soothe the ailments of the masses with their potions and lotions. Now with this recent de-SPAC transaction, it seems they’ve unlocked the secrets of the universe, or at least successfully navigated the SPAC cosmos.

As Jupiter’s CEO Brian John remarked, “We firmly believe in the strategy and leadership of Chijet, and we are excited about the possibilities that this de-SPAC brings to Jupiter’s shareholders, which can now finally be recognized as an asset on Jupiter’s balance sheet.” You can almost feel the pride and confidence radiating from his words like rays of sunshine on a chilly winter day.

Jupiter Wellness generates revenue through the sales of OTC and consumer products, as well as licensing royalties. With this new venture into the unknown, they have boldly gone where no company has gone before, or at least found a clever way to make a quick buck. Although their product pipeline is a mixed bag of tricks, it shows a genuine desire to innovate and improve the health and wellbeing of their customers.

So, what does this all mean for the average Joe and Jane investor? Well, for one, it’s an opportunity to get on board a rocket ship to new heights of wellness and wealth. Interested investors and shareholders are encouraged to sign up for email alerts, or follow the company on Twitter and LinkedIn for press releases and industry updates. It’s the digital age, after all, and who wouldn’t want to stay connected with a company that’s aiming for the stars?

As we look to the future, it’s clear that Jupiter Wellness is a company that refuses to be content with their feet firmly planted on earth. They’re reaching for the heavens, and with their recent de-SPAC transaction, they’ve taken one giant leap for mankind, or at least their shareholders. Time will tell if this celestial endeavor pays off, but for now, we salute Jupiter Wellness and their bold, innovative mission of health and wealth.

In conclusion, the successful de-SPAC of Jupiter Wellness’ sponsored SPAC, CJET, serves as a testament to the company’s commitment to innovative growth strategies and its willingness to explore uncharted territory in the health and wellness sphere. As investors and shareholders eagerly watch from the sidelines, one can’t help but wonder if Jupiter Wellness has truly unlocked the secrets of the universe or merely stumbled upon a lucrative opportunity. Whatever the future holds, it’s clear that the sky’s the limit for this ambitious company.

Disclaimer

Delaware Drama: Super Group Shareholders Sue Shady SPAC Schemers for $4.75 Billion Merger Mishap

TLDR:
Super Group shareholders accused of withholding information during merger to profit from stock price decline. Defendants gifted shares valued at 0.0023 cents each, sold for $1 each with waived redemption rights, encouraging stockholders to not exercise redemption rights and vote in favor of the merger.

Oh, what a tangled web we weave, my dear readers, when at first we practice to deceive. This time, we’re peering into the case of the Super Group shareholders, designers of the Sports Entertainment Acquisition Corporation (SEAC), who face accusations of withholding information during their $4.75 billion merger. And why, pray tell, would they do such a thing? Well, it seems that Grubman, Shumway, and Collins, the trio of defendants, orchestrated this charade in order to profit from transactions that would cause a post-merger stock price decline. They allegedly achieved this by structuring their blank-check company in a way that ensured a bad deal would be more profitable than no deal at all. Clever, isn’t it?

Before SEAC’s initial public offering (IPO), our defendants were gifted 11.25 million common equity shares, valued at a mere 0.0023 cents per share. But that’s just the beginning of this caper. You see, under the terms of the special purpose acquisition company’s IPO, these gentlemen, along with an unnamed investor, sold their shares for a whopping $1 each. But wait, there’s more! They cunningly waived their redemption rights for the founder’s shares, making it critical for the SPAC to complete a merger with a partner, lest the shares expire worthless. It’s a convoluted scheme worthy of any pulp detective novel.

According to the complaint filed in the Delaware Court of Chancery, the defendants knew that even a bad deal driving SEAC’s stock price below $10 per share would be more advantageous than no deal at all. They also knew that they could maximize the trust funds needed for the merger by limiting the number of redemptions – a move that would deplete cash from the same trust. Talk about covering your bases.

Now, as you may know, a standard timeframe for a SPAC to find a merger partner is usually set at two years. If it fails, the shell company is liquidated, cash goes back to the shareholders, and the founders are left without profits. But these defendants allegedly had other plans. They encouraged public Class A stockholders not to exercise their redemption rights and urged them to vote in favor of the merger. Quite the intricate ploy, don’t you think?

When Super Group revealed its preliminary Q4 and FY22 results in mid-March, they expressed optimism for the future, despite a year-on-year decline in several financial metrics. They claimed the value of shares was $10 apiece, but the plaintiffs’ legal team begs to differ, arguing that the actual value was closer to $6.72 per share due to cash declines and dilution. The defendants were also accused of being privy to upcoming “substantial redemptions” that would cut the per share cash contribution – another piece of damning evidence.

The plaintiffs’ counsel is currently seeking damages to reveal the difference between the value stockholders would have experienced if they had redeemed their shares before the merger and the genuine value of the shares they ultimately received. As this lawsuit continues to unfold, one can’t help but wonder if these defendants will get their just desserts or if they’ll manage to slip through the cracks of the legal system. Only time will tell, dear readers, but rest assured, we’ll be watching closely.

Disclaimer

When SPAC Meets Biotech: Forbion’s $130M IPO Bag Snags enGene in Gene-ius Merger Move

TLDR:
Forbion European Acquisition Corp. merged with Canadian biotech company enGene, with $130M raised during Forbion’s IPO and $90.6M investment commitment from Forbion Growth, to revolutionize non-viral gene therapy research and likely make waves in the market.

Ladies and gentlemen, hold on to your lab coats and safety goggles, because the world of biotechnology is getting a facelift. Forbion European Acquisition Corp., a SPAC with a penchant for dollar signs, has merged with enGene, a Canadian biotech company that dabbles in non-viral gene therapy. Rest assured, with the amount of money thrown around in this deal, we’re sure they’ll be able to mend the biotech industry’s broken heart.

Forbion European Acquisition Corp. raised a remarkable $130 million during its IPO in December 2021 – an amount that makes you wonder if they’ve discovered the secret to turning water into money. But alas, they’re just really good at raising capital. The merger with enGene will be funded by $15.8 million of FRBN Class A common stock, and a $90.6 million investment commitment by Forbion Growth. With this kind of cash, they could probably buy several small islands, but instead, they’re choosing to invest in the future of gene therapy.

EnGene, a company that’s been pushing the envelope with its non-viral gene therapy research, is on the cusp of revolutionizing the treatment of genetic diseases. And now, with the help of their new sugar daddy, Forbion European Acquisition Corp., the possibilities are endless. While the merger is expected to close in the latter half of the year, the combined company will trade on the Nasdaq, where they’ll likely make some serious waves in the market.

This unlikely marriage of innovation and heavy investment may have some critics shaking their heads, but let’s face it, when ambition and collaboration intertwine, big things are bound to happen. It’s only a matter of time before the biotech industry experiences a transformation so profound that we all forget about our ex-lovers and focus solely on the wonders of science. Perhaps it’s a pipe dream, but hey, a reporter can wish, can’t they?

In the world of SPACs and business, it’s not uncommon to see companies joining forces for the greater good – or at least, for the greater profits. In this case, the union of Forbion European Acquisition Corp. and enGene is like a match made in biotech heaven. Their shared vision of improving people’s lives through breakthrough technology is as noble as it is lucrative, and we can’t wait to see the fruits of their labor.

As the biotechnology sector continues to evolve, it’s mergers like this one that remind us of the power of collaboration and innovation. With enGene’s expertise in non-viral gene therapy and Forbion’s deep pockets, this dynamic duo is poised to make a significant impact on the industry – and perhaps even change the course of human history. So, let the naysayers scoff, but don’t be surprised when the world of biotech looks nothing like it does now.

In conclusion, the merger of Forbion European Acquisition Corp. and enGene is a testament to what can be achieved when driven individuals see eye-to-eye and join forces in the name of progress. While the financial details might make your eyes glaze over, one can’t deny the potential that lies within the combination of cutting-edge technology and ambitious funding. Keep your eyes peeled, folks, because the biotech landscape as we know it could be on the verge of transformation.

Disclaimer

SPAC-pocalypse: From Talk of the Town to Toast of Liquidation Town, Refunds Galore!

TLDR:
SPAC era ends as investors celebrate liquidations; high-profile investors like Chamath Palihapitiya and Alec Gores liquidate their SPACs, returning funds to investors. Exciting developments in technology, automotive, and healthcare industries offer new opportunities for investment in 2024.

Ladies and gentlemen, gather ’round as we bid adieu to the SPAC era, which has finally come to a screeching halt. This year, nearly $30 billion of these “blank check” companies’ funds have already been returned to investors, outpacing the $45 billion liquidated in 2022. But fear not, for every cloud has a silver lining, and in this case, it’s the fact that not everyone is in mourning. Some are actually celebrating the end of the SPAC era as if they’d just found a golden ticket.

The dwindling number of acquisition-worthy companies has left high-profile investors like Chamath Palihapitiya, Alec Gores, Gary Cohn, and big shots such as KKR & Co. and TPG Inc. no choice but to liquidate their SPACs and return money to investors. But, as a wise person once said, “One man’s trash is another man’s treasure.” The end of the SPAC era may be music to some people’s ears, especially those who view liquidations as a good thing.

According to Kristi Marvin, founder & CEO of SPACInsider, “You don’t want a sponsor team to drag a deal across the finish line just to get it done.” With a responsible attitude, SPAC sponsors are giving investors what they truly want – liquidation rather than a forced deal. That’s right, folks, break out the party hats and confetti, because investors are breathing a sigh of relief, getting their money back plus interest, and thanking their lucky stars they didn’t spend it on NFTs.

Now, don’t let the end of the SPAC era dampen your spirits, because 2023 has been a rollercoaster of a year for the business world. It’s been a rough start, with debt ceiling issues and bank failures causing chaos. However, it would be a disservice to focus only on the doom and gloom when there have been some truly exciting developments this year.

In the realm of technology, Apple Inc. is leading the charge with innovative products and services that have people lining up around the block. The latest iPhone release had consumers flocking to stores, while the new iPad and MacBook only solidified Apple’s position as the one-stop-shop for all things tech.

Meanwhile, the automotive industry has been electrifying, with electric vehicles making waves and companies like Tesla at the forefront. Their Model Y was a hit, and Tesla’s expansion into new factories in Texas and Germany only served to further cement their status in the industry.

Last but not least, let’s not forget the healthcare industry, which has been a beacon of hope in the ongoing fight against the COVID-19 pandemic. Pfizer BioNTech’s vaccine has been a game-changer, and numerous companies are hard at work developing new treatments and vaccines to ensure a brighter, healthier future for all.

So, as we bid farewell to 2023 and welcome 2024 with open arms, let’s raise a glass to the end of the SPAC era and the new opportunities that lie ahead. The technology, automotive, and healthcare industries are thriving, and the future is ripe with potential. And remember, always be cautious with where you invest your hard-earned money – especially when it comes to NFTs.

Disclaimer

SPACtacular Investigation: Johnson Fistel Probes Potential Legal Violations of Doma Holdings and Cyxtera Technologies

TLDR:
Johnson Fistell LLP is investigating potential violations of law involving two special purpose acquisition companies (SPACs), Doma Holdings Inc. and Cyxtera Technologies, Inc. The law firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits.

Well, folks, it seems like we’re caught in another whirlwind of financial shenanigans. Shareholder rights law firm Johnson Fistell LLP has decided to snoop around and investigate potential violations of law involving two special purpose acquisition companies (SPACs). You know, those lovely investment vehicles that give you the joy of owning a piece of a company without actually having to know what it does. The SPACs in question are Doma Holdings Inc. (previously Capitol Investment Corp.) and Cyxtera Technologies, Inc. (formerly Starboard Value Acquisition Corp.).

Now, if you’re an investor with a fondness for throwing your hard-earned cash into these murky financial waters and you’ve found yourself with a lighter wallet due to the aforementioned SPACs, fear not! Johnson Fistell is here to lend a hand. All you need to do is click or paste some magical links into your browser and submit your losses. But, as with everything in life, it’s essential to do your homework and consult a professional before making any decisions involving your money.

Johnson Fistell, LLP, in case you’re wondering, is a nationally recognized law firm with a penchant for standing up for the little guy. With offices spread across California, New York, and Georgia like a Johnny Appleseed of justice, they represent individual and institutional investors in shareholder derivative and securities class action lawsuits. Their primary goal is recovering losses incurred due to violations of federal securities laws. A noble pursuit, indeed.

Of course, it’s important to remember that past results don’t guarantee future outcomes. So, if you’re hoping to ride the coattails of their previous successes, you might want to temper your expectations. But hey, at least they’re trying, right? And as we all know, responsibility and accountability play a huge role in the investment world. Or at least, they should.

Now, if you find yourself in need of more information or just want to chat with someone who shares your love of federal securities laws, feel free to reach out to Jim Baker at Johnson Fistell. He’s available via email or phone, and I’m sure he’ll be more than happy to provide you with the guidance you need in these trying times.

What’s the moral of the story here? Well, it’s simple: While we continue to barrel through life at breakneck speed and the world around us keeps changing, it’s crucial to remain vigilant and protect our investments. I mean, it’s not like they grow on trees – unless you’re investing in tree farms, in which case, kudos to you for your eco-friendly endeavors.

So, my fellow investors, let us take this moment to remind ourselves of the importance of doing our due diligence, seeking professional advice, and never forgetting that responsibility and accountability go hand in hand with innovation and progress. And, as always, keep an eye out for those pesky SPACs!

In conclusion, ladies and gentlemen, it seems that the financial world will never cease to surprise and, at times, disappoint us. However, with the help of law firms like Johnson Fistell, we can attempt to right the wrongs and protect our investments. Remember, it’s crucial to seek professional advice and research thoroughly before diving into any investment decision. That way, we can all hope to navigate the turbulent waters of the stock market and emerge unscathed on the other side. Stay safe out there, investors!

Disclaimer

VinFast & the Furious: Revving up the EV Scene with a $27 Billion SPAC Merger!

TLDR:
VinFast is going public via a $27bn SPAC merger with Black Spade Acquisition Co, making it the third-largest SPAC merger in history. The company has built a state-of-the-art manufacturing facility with the capacity to produce 300,000 electric vehicles per year and plans to expand its market reach to Europe “soon” while also making waves in Vietnam and North America with its EV models.

Well, folks, it’s time to grab your popcorn and kick back while Vietnam’s very own electric vehicle (EV) prodigy, VinFast, struts its stuff on the public stage. That’s right, VinFast is going public via a Special Purpose Acquisition Company (SPAC) merger with Black Spade Acquisition Co BSAQ, an impeccable move considering the company’s previous flirtations with a U.S. initial public offering. This marriage of convenience values VinFast at a jaw-dropping $27 billion, making it the third-largest SPAC merger in history. Quite the accomplishment for a company that started as a humble electric scooter manufacturer in 2017.

You may be wondering how VinFast managed to earn such a hefty price tag. Well, it seems the company’s been trying to impress, having built a state-of-the-art manufacturing facility with the capacity to churn out up to 300,000 electric vehicles per year. That’s a whole lot of EVs, folks. It’s no wonder that Black Spade Acquisition Co-CEO Dennis Tam gushed about VinFast’s “execution excellence” and their beautifully designed, high-quality EVs in just a few short years. Talk about a modern-day Cinderella story.

But VinFast isn’t content to rest on its laurels. With eyes set firmly on the future, the company plans to expand its market reach to Europe “soon” and continue making waves in Vietnam and North America. As the proud parent of four EV models already delivered to Vietnamese customers and its first North American delivery, the VF 8 model, VinFast is eager to show off its progeny to the world. The company’s commitment to going all-in on electric vehicles after halting internal combustion engine production in 2022 is truly a testament to its dedication to a brighter, greener future.

So, what does this mean for VinFast’s competitors like Tesla, you ask? Well, there’s a new kid on the block, and its name is the VF 8 electric SUV. This feisty newcomer is seen as a potential rival to Tesla’s Model Y, one of the bestselling vehicles globally. With a U.S. headquarters in Los Angeles and showrooms in California, VinFast is making itself cozy in Tesla’s backyard while also maintaining a foothold in the cutthroat Asian market. Tesla’s recent price cuts to gain market share may signal that the bigwigs are taking notice of this up-and-coming contender.

As we eagerly anticipate VinFast’s merger completion in the second half of 2023, it’s hard not to marvel at the company’s rapid growth and ambitious plans. A proposed manufacturing facility in North Carolina is set to break ground, further solidifying the company’s North American presence and aspirations. VinFast Auto Global CEO Madame Thuy Le cited the partnership with Black Spade and the U.S. listing as the “perfect capital raising avenue” for VinFast’s global ambitions. Like a proud parent, they’re preparing to watch their EV brainchild soar to new heights.

In conclusion, VinFast’s foray into the public arena seems to be garnering quite a bit of attention, and with good reason. This high-flying EV company is poised to become a major player in the industry, thanks to its impressive production capabilities and aggressive expansion plans. Tesla and other competitors should keep a weather eye on the horizon as VinFast revs its engines, ready to take on the world. As for us, the spectators, all that’s left to do is sit back, enjoy the show, and perhaps ponder the potential of a VinFast vehicle gracing our driveways in the not-too-distant future.

Disclaimer

SatixFy Says Gur-bye to Former CEO, Welcomes Barkan to the Satellite-Chip Dance Floor

TLDR:
Satellite chip startup SatixFy has named Nir Barkan as their new Acting CEO, making him the fifth CEO in just one year. Barkan has over 20 years of experience in the semiconductor industry and has been with the company since its inception.

Well, folks, it seems that the revolving door of CEOs at SatixFy, the satellite chip startup, is spinning faster than a roulette wheel. With Ido Gur stepping down, the company has announced Nir Barkan, their Chief Commercial Officer, as the new Acting CEO effective June 1st. If you’re keeping score at home, that makes Barkan the fifth CEO in just one year. It’s a wonder they’re not dizzy from all the changes.

SatixFy, the ambitious company aiming to revolutionize the world of communications, has seen quite the parade of executives traipsing through its hallowed halls. But fear not, dear readers, for the company remains confident that Mr. Vulcan – I mean, Barkan – will lead them to a brighter future. After all, with over 20 years of experience in the semiconductor industry, including leadership positions at Marvell Semiconductor and LSI Logic Corporation, he’s got the chops to take SatixFy to new heights.

For those of you who might have missed the memo, here’s a quick refresher on SatixFy’s mission. This plucky startup is setting out to bring high-speed broadband to everyone, anywhere, anytime – a tall order, indeed. But with their innovative technology, they believe they can change the game and improve the lives of millions of people around the world. It’s like…oh wait, I can’t say that. Nevermind. Let’s move on.

Now, back to Mr. Barkan. Having been with SatixFy since its inception, he’s played a key role in the company’s success to date. His dedication to the mission and unwavering commitment to excellence have earned him the respect and admiration of the entire team. It’s no wonder they’ve chosen him to guide their journey into uncharted territory. Who knows? Maybe they’ve finally found their golden goose.

As SatixFy moves forward under the steady hand of Barkan, they remain true to their commitment to providing cutting-edge technology that will change the world for the better. With Mr. Vulcan – sorry, Barkan – at the helm, the company is more confident than ever that they will succeed. So, buckle up, folks, because it looks like we’re in for quite a ride.

In conclusion, let’s all take a moment to thank Ido Gur for his leadership and dedication to SatixFy’s cause. Here’s to hoping he finds success in his future ventures. And to the loyal followers of SatixFy, keep your eyes peeled for more exciting developments from this audacious startup. They may be just getting started, but the future is looking brighter than ever – and we can’t wait to see what they have in store for us next.

So there you have it, the latest chapter in the ever-evolving saga of SatixFy’s leadership. As Barkan steps up to take the reins, we can only hope he’s got the stamina to weather the storm and lead this game-changing startup to glory. If not, well, there’s always the possibility of CEO number six. But let’s not get ahead of ourselves. For now, we’ll just sit back, relax, and enjoy the show.

Disclaimer

Buffett Brushes Off Takeover Tango: Berkshire Happy Just Flirting with Occidental, Thanks!

TLDR:
Berkshire Hathaway surprises by not acquiring Occidental Petroleum despite holding a 23.6% stake, citing Occidental CEO Vicki Hollub’s impressive leadership and the conglomerate’s contentment playing the field between Occidental and Chevron. Berkshire Hathaway received permission to buy up to 50% of Occidental’s common stock but seems content with its current investment.

In a world where acquisitions are as common as finding a Starbucks on every corner, Berkshire Hathaway has surprised us all with its decision not to acquire Occidental Petroleum Corporation. It’s a shocking revelation, indeed, for those who were holding their breath in anticipation. But fear not, the excellent management of Occidental remains intact, and Berkshire Hathaway remains a happy stakeholder.

Warren Buffett, the oracle of Omaha himself, has dismissed any speculation surrounding a potential acquisition of Occidental after accumulating a 23.6% stake. Perhaps we can take a moment to appreciate the fact that, for once, a large conglomerate isn’t trying to swallow up another company. It’s refreshing, like a cool breeze on a hot summer day.

So why exactly is Berkshire Hathaway content with its current investment in Occidental? The answer lies in the impressive leadership of Occidental CEO Vicki Hollub. She’s been slashing debt and returning money to shareholders since the company acquired Anadarko Petroleum Corp in 2019. Buffett has praised her as an extraordinary manager, and we can only assume that he doesn’t offer such high praise lightly.

Occidental’s main competition, Chevron Corp, also has a significant presence in the Permian Basin, an area in Texas and New Mexico that produces a substantial amount of oil. Berkshire Hathaway owns a whopping $21.6 billion worth of Chevron stock, which is quite a chunk of change. It seems that Berkshire Hathaway is content playing the field between these two oil giants, rather than settling down with just one.

At one point, Berkshire Hathaway owned $10 billion of Occidental preferred stock with an 8% dividend, which helped fund the Anadarko purchase. The conglomerate also held warrants to buy another $5 billion of common shares at $59.62 each. However, Occidental recently redeemed about $474 million of the preferred stock at a premium, reducing dividend payouts. It seems that even Occidental is enjoying its independence, just a little.

In a surprising twist of events, Berkshire Hathaway received permission from the U.S. Federal Energy Regulatory Commission last August to buy up to 50% of Occidental’s common stock. This permission was required due to the fact that exercising the warrants would have exceeded the 25% ownership limit. It’s like watching a soap opera but with stocks and dividends instead of love triangles and dramatic confrontations.

Buffett, now 92 years old, has longed for another large acquisition for his Omaha-based conglomerate. Berkshire Hathaway, a titan in the world of conglomerates, boasts a diverse range of companies under its umbrella, including Geico car insurance and the BNSF railroad. But for now, it seems, the giant will remain content with its current investment in Occidental, and the world of business will continue to spin on its axis.

In conclusion, Berkshire Hathaway’s decision not to acquire Occidental Petroleum Corporation is a rare and refreshing change of pace in the world of business acquisitions. As we watch the drama unfold in the oil and energy sectors, we can take comfort in knowing that sometimes, just sometimes, big conglomerates like Berkshire Hathaway can resist the urge to gobble up another company. And that, dear readers, is a victory worth celebrating.

Disclaimer

Buffet’s Banking Bummer: “So Messed Up” Incentives Make Berkshire Cautious, Local Banks Still A-OK

TLDR:
Berkshire Hathaway is cautious about the banking sector and has sold bank shares in the past six months. They still own Bank of America but are wary of the system and banking regulations. First Republic’s heavy losses in government-guaranteed debt have highlighted the risks of unguaranteed home loans in the banking industry.

Ladies and gentlemen, today we bring you some banking news that really tickles my funny bone. As you may know, Warren Buffett, the Oracle of Omaha, mentioned that Berkshire Hathaway is cautious about its banking sector. But why, you might ask? Well, let me explain. Buffett said the news flow surrounding federally insured deposits is scant. The public remained confused about what would happen if a bank failed, and the media, bless their hearts, was of little help. I’ve even seen bank failures. Some may think that the bank is in trouble, that the system is not working. But we are confident in our banking sector. The US government and US people don’t care that banks fail, and people actually lose their deposits. There was a demonstration project at Silicon Valley Bank over the weekend, but the public is still confused.

As of the end of 2022, 89% of SVB’s $175 billion deposits were uninsured, while the US banking system, in its infinite wisdom, protected depositors with a “systemic risk exemption.” This exemption applied even to depositors with accounts greater than $250,000. As you know, Berkshire has about $128 billion in cash and Treasury bills. If the banking system somehow temporarily malfunctions, we want to be there. Buffett said one reason we’re cautious is that the bank regulatory stimulus is “messed up.” First Republic Bank, the last US community bank to fail, announced in its annual report that it is offering jumbo-sized unguaranteed home loans at fixed interest rates. Referring to his father’s loss of his job in a bank run in 1931, Buffett said, “That’s what the First Republic did, it’s blatant, and the world ignored it until it exploded. “Bank regulation incentives are so messed up, and so many people are interested in screwing them up.” That’s why we’re very cautious about ownership in situations like this.”

Don’t get me wrong, we’re not completely out of the banking sector yet. We still own Bank of America, and Buffett is happy with that, he said. However, it has sold bank shares in the last six months after selling some when the pandemic hit. Buffett sits behind a sign that says “Available for Sale” to comment, while his longtime business partner Charlie Munger sits behind a “Hold to maturity” sign to warn the bank that the regional banking crisis is on its way. Seized by regulators and sold to JP Morgan, First Republic suffered heavy losses in its held-to-maturity investment portfolio, primarily government-guaranteed debt.

I know some people are worried about their money at their local bank. But Buffett isn’t personally concerned about local banks. “I have my own money. It’s probably over the FDIC limit. I keep it in my local bank, but I’m not at all concerned.” Berkshire Hathaway is cautious in its banking sector, but we are still there, and I’m sure the system will work for many years. Thank you for your attention. We look forward to bringing you more news in the future.

It was quite an emotional roller coaster. First, we hear that Warren Buffett and Berkshire Hathaway are wary of the banking sector. Then I heard they were still stuck with Bank of America and didn’t personally care about their money at their local bank. The fact is that the message around deposits has been bad and has caused panic among depositors and three mid-sized banks since March. I don’t know about you, but I suddenly had the urge to hide all my money under my mattress. Just kidding, I stick to trusted banks. Or do I? More and more banks seem to be taking risks with unguaranteed home loans and fixed interest rates. Is this a ticking time bomb waiting to explode in the face of the banking industry? Only time will tell. But one thing’s for sure, Warren Buffett’s dry wit and blunt honesty will keep us entertained and informed.

Disclaimer

VinFast and Furious: Vietnamese Automaker Revs Up for SPAC-tacular $27B Public Debut

TLDR:
VinFast, a Vietnamese automaker, is going public through a SPAC merger with Black Spade Acquisition Co with an estimated valuation of $27 billion and a neat $10.00 expected value for each common share, and may issue up to $50 million worth of “free bonus” ordinary shares to its employees if certain conditions are met. With a focus on EVs, VinFast is confident in its ability to achieve greater success and become a major player on the global stage.

Ladies and gentlemen, hold onto your hats, because VinFast, the Vietnamese automaker known for pushing the boundaries of the automotive industry, is going public through a SPAC merger with Black Spade Acquisition Co. This news may come as a shock to some, as enthusiasm for SPAC mergers has taken a nosedive, much like the stock prices of other companies that went public through the same route. But hey, who doesn’t love a bit of risk?

With an estimated valuation of a whopping $27 billion and an equity value of $23 billion, VinFast seems to have taken the old adage “go big or go home” quite literally. The merger is set to close in the second half of 2023, and the value of each common share in VinFast is expected to be a neat $10.00. With such a generous valuation, it’s no wonder that VinFast employees might be receiving some hefty bonuses if certain conditions are met.

For instance, if VinFast’s consolidated revenue for fiscal year 2023 reaches at least $1.875 billion, the company may issue up to $50 million worth of “free bonus” ordinary shares to its directors, executives, managers, and employees. Talk about a bonus that could make anyone forget about the SPAC merger risks.

VinFast has already proven itself capable of entering international markets quickly, and the merger with Black Spade creates a perfect opportunity to raise capital for future global ambitions. The CEO of VinFast Auto, Madam Thuy Le, sees this partnership as an important accomplishment for Vingroup, the parent company of VinFast. With a wide range of electric vehicles with up to 348 horsepower, including the VF 6 and VF 7, VinFast is ready to pave the way for other automakers.

Admittedly, following in the footsteps of Lordstown and Faraday Future, whose share prices took a tumble after going public via SPAC, may not sound ideal. But VinFast is confident that it can pull off a successful merger and achieve greater success. After all, with such a superior portfolio of electric vehicles (EVs) and innovative automotive technologies, who are we to doubt their ambitious mission?

The future of VinFast and the global automotive industry undoubtedly holds many surprises. As the world shifts towards more sustainable and eco-friendly transportation options, VinFast’s focus on EVs positions them to become a major player on the global stage. This merger with Black Spade Acquisition Co is just the beginning of an exciting new chapter for VinFast.

So, to all those skeptics out there, don’t let the past failures of other SPAC mergers cloud your judgment. VinFast is determined to leave its mark on the automotive industry and has shown no signs of slowing down. As the saying goes, “fortune favors the bold,” and VinFast is certainly not lacking in boldness.

In conclusion, the VinFast and Black Spade Acquisition Co. merger is a thrilling development in the automotive industry. It’s a high-stakes game of risk and reward, but with VinFast’s impressive portfolio of EVs and its aggressive expansion plans, it’s a gamble that just might pay off. While the outcome remains uncertain, one thing is for sure: the automotive world is in for a wild ride, and VinFast is ready to take the wheel.

Disclaimer