SUBSPAC

Today we cover $PSFE, $RIDE, $BKSY and more…

As more De-SPACs report Q3, premium valuations and lofty projections catch up to some companies. In today’s dish, A payments provider gets beaten down after growth slows to a crawl, a EV start-up delays production again and a data provider signs a major long-term Partnership. Also, a Casino Operator calls it quits on an existing deal. Read on to find the latest about all things SPACs.


De-SPACs to Watch

$PSFE Sinks as Company Lowers Guidance 

  • Shares of UK-based Paysafe closed at $4.22, down 42% after the company reported weaker than expected numbers across integrated processing and its digital wallet segment. 

Revenue in Q3 stood at $354 million, which was lower than the analyst consensus of $370.6 million and down 0.3% from the same quarter a year ago ($355 million). Management attributed the slump in revenues to the exit of clients in the direct marketing vertical within its Integrated Processing Segment and Weaker than expected results from its digital wallet business (Where Revenues were down 15% YoY).

PSFE’s challenges may also persist beyond Q3, considering the soft guidance issued by Management for Q4 and beyond. PSFE now expects revenues of between $1.47-$1.48 billion for FY21, which is lower than the previous forecast of $1.53-$1.55 billion, due to gambling regulations and lower than expected growth in the European Business.

For FY22, the company now expects revenues of $1.53-$1.58 billion, which is much lower than street expectations of $1.75 billion. PaySafe now sees 2022 as a transition year, where the company will attempt to get the digital wallet business back to double-digit growth and attract new clients for the Integrated Processing Business. 

 

$RIDE Announces Foxconn Deal, Delays Endurance Production 

  • Shares in Lordstown Motors is set to open sharply lower today after delaying its EV Pickup truck ‘Endurance’. 

Lordstown is delaying the production and delivery of Endurance year again. Production is expected to commence one quarter later than anticipated (Q3 2022 vs. Q2 2022) due to material shortages and other challenges with the supply chain.

The EV maker had originally planned to begin production over a year ago, but several setbacks have resulted in multiple delays. RIDE shares continue to be volatile, after its performance yesterday was the best trading day on a percentage basis in over a year. Shares jumped after the company confirmed that it was selling its Ohio plant to Foxconn, in a deal where the iPhone maker would assemble pickup trucks for the cash-strapped company. Foxconn will buy the plant for $230 million and expects to sign a contract by April 2022 to assemble the Endurance. 

$BKSY and NASA Ink Five-Year Deal 

  • BlackSky stock was up 5% before the market opened as the company secured a sole-source blanket purchase agreement with NASA. 

BlackSky will assist NASA’s observation research team by providing satellite imaging data for automatic pattern-of-life monitoring and anomaly decision.

As part of NASA’s Commercial Smallsat Data Acquisition Program (CSDAP), research teams worldwide will have access to high spectral and spatial resolutions with increased temporal frequency as part of the new partnership. 


Price Target Updates


Reddit Reads

$CND Will Support Plans to Regulate Stablecoin Issuers 

U.S. stablecoin issuer Circle supports the Biden administration’s proposal to regulate stablecoin issuers as banks and views the recommendations as progress in the growth of the stablecoin industry.

$FRSG announces expansion into US market

EO Charging, a UK-based provider of turnkey solutions for electric vehicle fleets, announced its expansion into the U.S. market and the initiation of the site selection process for its North American office planned to open in early 2022. This new division will deliver EO’s complete fleet charging ecosystem for businesses and government fleet operators throughout the Americas.


Meme of the Day 

The kidnappers could return me, but would my parents take me back?


$AUS and Wynn Resorts are Terminating their SPAC Merger

  • SPAC Austerlitz Acquisition Corporation and Wynn Resorts announced to mutually terminate the $3.2 billion deal. 

The termination of the deal comes on the heels of Wynn claiming that the current industry economics weren’t sustainable.

CEO Craig Billings stated that the company will continue to roll out new product features and planned new state launches (like the company’s launch in New York). The company is also pivoting its user acquisition strategy to a targeted ROI-focused strategy, primarily to combat elevated marketing and promotional spending by competitors in the sports betting industry. 


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