SUBSPAC

Today we cover $HUGS, $HCIC, $TCAC, and more…

In today’s dish, a SPAC is attempting to invest money into a high-profile IPO. Also, we find out that not even SPACs are immune to Chinese Regulators and a struggling de-SPAC company gets acquired at a 60% discount. Read on to find the latest about all things SPACs.


$HUGS Will Invest in the Panera Brands IPO

  • Privately held Panera Brands which owns Panera Bread, Caribou Coffee and Einstein Bros Bagels is planning to file an IPO soon. 

Panera hasn’t determined the price range, the number of shares it plans to offer, or a date for the IPO. Danny Meyer, the founder of Shake Shack, is attempting to invest $285 million cash held in the SPAC trust of USHG Acquisition Corp to back the company at the time of its IPO (a similar strategy to what Bill Ackman attempted with the Universal Music Group Deal and SPAC $PSTH).

As shareholders of SPACs are entitled to withdraw funds before a deal closes, JAB Holdings (currently a majority investor in Panera Brands) has also agreed to invest additional money to offset any withdrawals, ensuring certainty about the cash infusion from the deal. Panera Bread was a public company for more than two decades before it was bought by JAB in 2017 for $7.16 billion. In August, JAB combined Panera Bread with Caribou Coffee and Einstein Bros under one unit.

 

SPACs to Watch Today

$HCIC and Plus Call off SPAC Deal 

  • SPAC Hennessy Capital Acquisition Corp and Autonomous Software Developer Plus have decided to mutually terminate their deal in light of increased regulation from China. 

The deal valued Plus at $3.3 billion and was expected to bring in $500 million in gross proceeds. This included the $345 million held in the SPAC trust (as a result of HCIC’s IPO in January) and an additional $150 million in PIPE funding. But in September, the company announced that the deal was in trouble as a result of the changes in the regulatory environment in China.

PlusDrive recently secured a deal to retrofit software to 1,000 Amazon trucks with a possibility that Amazon could get a warrant to purchase up to a 20% stake in the company. Despite the deal, Plus primarily operates in China, where it and First Auto Works are manufacturing joint venture partners. 

Lemonade Set to Acquire $MILE

  • Lemonade will boost its auto-insurance business by acquiring pay-per-mile insurer Metromile in a $500 Million Deal 

Metromile shareholders will receive Lemonade shares at a ratio of 19-1, with the deal expected to close by mid-2022.

Metromile went public through a SPAC merger with INSU Acquisition Corp II at a valuation of $1.3 billion, but the company’s business model has come into question in recent quarters, with the total number of accidents increasing as consumers travel more. 


$TCAC Will Take Springbig Public in a $500 Million Deal 

  • Loyalty and Marketing Automation Platform springbok is set to merge with Tuatara Capital Acquisition Corp in a deal valuing the combined company at $500 million. 

The deal will generate gross proceeds of $200 million in addition to a $13 million PIPE anchored by TVC Capital, Key Investment Partners, and Springbig’s Founder and CEO Jeffrey Harris.

Springbig is a marketing platform that allows brands to directly reach cannabis consumers. The platform helps brands drive consumer and retailer engagement through targeted message marketing while staying compliant with cannabis regulation. Springbig serves over 1,000 clients across the US and Canada, comprising more than 2,300 retail locations, and has over 41 million consumers enrolled in its proven B2B2C platform. The company has grown revenues at a CAGR of 105% since 2019 and is on track to generate $24 million in revenues for 2021. 


Reddit Reads

$MCMJ Wins Legal Battle in Florida 

Starting from Monday, medical patients in Florida can resume purchasing cannabis products online from licensed medical marijuana dispensaries like Leafly. The decision comes months after Florida’s Department of Health announced it would fine any licensed cannabis dispensary that used third-party services to process orders and threatened a fine of $500,000. 

Benchmark Initiates Coverage on (DMYQ) with a ‘Buy’ Recommendation 

DMYQ, a SPAC which is set to merge with data services software platform company Plant Labs was recently given a ‘Buy’ recommendation from Benchmark and a Price Target of $17, implying an upside of around 68%.

Not Today, Mr. IRS


ADX is Looking to Introduce SPACs 

  • Abu Dhabi could be the first country in the Middle East to allow SPAC listings, which would provide a major boost the Abu Dhabi Securities Exchange 

The ADX and Abu Dhabi’s Department of Economic Development (DED) have submitted a proposal to the Securities and Commodities Authority (SCA) for the introduction of a SPAC framework.

The total market cap of ADX recently crossed DH1.5 trillion ($408 billion) spurred by a series of IPOs and increased international investments. The proposed framework will facilitate IPOs of SPACs, provide investors worldwide to access SPAC listings and also allow sponsors outside the UAE to apply for approval to list their SPACs on the ADA. 


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