Today we cover $IMAQ, $GRNS, $TDAC, and more…
Former Billionaire, Anil Ambani, who went from being the sixth richest person in the world to declaring bankruptcy last year, is making a comeback through a SPAC. Also, a music streaming company settles with the SEC after defrauding investors in a disastrous SPAC deal. Read today’s dish to find the latest on all things SPACs.
SPAC International Media Acquisition is currently in talks with Reliance Entertainment to acquire the content distribution and movie business of the company in a management buyout.
Shibasish Sarkar, the CEO of Reliance Entertainment, is in discussions with Anil Ambani, to buy the private movie studio and content distribution company owned by the industrialist, as a management buyout. Reliance Entertainment’s international business, a joint venture with Steven Spielberg’s DreamWorks called Amblin Partners, and the radio properties will be kept out of the buyout.
Sarkar plans to use funds from SPAC International Media Acquisition to fund the transaction, which could value Reliance Entertainment between $105 million $150 million. Discussions are currently ongoing and an agreement could be reached by the end of the calendar year, but valuations for the deal are yet to be agreed upon. Sarkar had filed for a $230 million IPO on Nasdaq earlier this year.
Greek music streaming business Akazoo, settled an SEC investigation for $38.8 million, after the firm defrauded investors.
Akazoo, a Greek firm pretending to be a music streaming business, settled with the SEC for $38.8 million after it ‘allegedly’ defrauded investors. Akazoo had completed its SPAC merger with Modern Media Acquisition Corp back in September 2019, but the SEC froze the firm’s assets last year as part of the investigation.
While the company told investors that it was a rapidly growing music streaming company with operations focused on emerging markets, and 38.2 million users & $120 million in annual revenue, in reality, the company had no paying users and a fraction of the revenue.
SPAC Deals to Watch
Shareholders of Greenrose approved a merger with cannabis operators Theraplant and Ture Harvest. Approximately 88% of the shares were redeemed (15.2m shares), leaving around $20 million in the SPAC trust. The combined company will continue to be listed as GNRS on the OTC Markets.
While GRNS initially planned to acquire other cannabis operators Shango Holdings and Futureworks in addition to Theraplant and True Harvest in a deal valuing the combined company at $210 million, the SPAC decided to delay the other acquisitions at a later date due to the time required to obtain state regulatory approvals. Greenrose believes that the acquisitions will enable a footprint in high-growth, limited license markets that include new and potential recreational marijuana states.
Trident Acquisition Corp announced that shareholders had decided to redeem less than 1% of the shares outstanding (22,000 shares) ahead of the vote for its merger today. The deal is expected to close tomorrow, with the stock ticker changing to ‘LTRY’ on Monday.
The company offers official state-sanctioned lottery games online, like Powerball, Mega Millions, and is the world’s largest provider of lottery data to over 400 digital publishers. From 2016 to 2020, Lottery.com grew gross revenue at a CAGR of 322% and now expects $71M revenue in 2021, $280M in 2022, and $571M in 2023. TDAC and Lottery.com agreed to a deal that valued the combined companies at $526 million but have delayed the merger twice.
South Korea-based SK Innovation is planning to invest $30 million into solid-state battery developer Solid Power (merging with SPAC Decarbonization Plus Acquisition Corp III at $1.2 billion) to jointly produce batteries. SK Innovation plans to invest $4.4 billion to build battery plants in the US.
Indonesian Ride-Hailing giant Gojek announced on Wednesday that it would deploy 5,000 electric motorcycles as a trial, as part of its long-term fleet electrification plans. Gojek said that drivers would need to pay daily rental fees for the electric motorcycles, which would be made by Gesit and Gogoro.