Today we cover $AGBA, $NKLA, $NGCA and more…
SPACs have taken bizarre target companies public, but $ABGA is taking things to the next level by merging with what appears to be a money laundering business. Also, one EV-maker looks to put its suspicious past behind it after settling with the SEC and Virgin Orbit strikes a huge Partnership in Asia. Read on to find the latest about all things SPACs.
SPAC AGBA Acquisition Limited has entered into a deal with ‘Diversified Financial Holding’ Company TAG Holdings and its subsidiaries in a deal valuing the combined company at $555 million.
TAG’s firm structure is so complex that investors may mistake it as a money-laundering shell company at first glance. TAG’s subsidiaries can be grouped under two segments, which include B2B services companies TAG International Limited, Tag Asset Partners Limited (Subsidiary of TAG International), OnePlatform Holdings Limited (OPH) & OnePlatform International Limited (Subsidiary of Tag Asset), and financial technology company TAG Asia Capital Holdings Limited.
Further complicating the structure of the firm, once the deal closes, OPH will become a subsidiary of OnePlatform International, following which the combined company will form two more wholly-owned subsidiaries, which would merge with Tag Asset Partners and Tag Asia Capital.
Very little is known about the business model and clients of the firm, with the president of the company stating in the press release that the transaction would enable the company to procure new clients and partners. AGBA is one of the oldest SPACs currently listed on the market, with an IPO dating back to May 2019 (the SPAC recently received another extension to find a deal until 05/22). There are no PIPE investors in the deal and the deal doesn’t have any tentative closing date, but the stock ticker is expected to stay as ‘AGBA’ even after the deal closes.
Shares of Electric truck-maker Nikola Motors Surged more than 21%, after the company announced a $125 million settlement with the SEC.
Nikola is seeking reimbursement for the fine and legal costs from former CEO and founder Trevor Milton, who is still the largest shareholder of the company. The settlement is expected to be paid over the next two years with Nikola also filing an arbitration claim against Milton to recover the damages from the settlement. NKLA shares have been a on a rollercoaster since its listing, with the market cap of the company briefly exceeding that of Ford last year.
Since then, Milton was accused and later indicted for allegedly lying about the company’s technology and market readiness (Milton resigned as executive chairman in September 2020). Nikola’s third quarter loss was narrower than expected at $267.3 million (around 68 cents per share) but is still a few quarters away from mass producing its electric semi truck (Q4 revenues are expected to be only $7 million). In its earnings announcement, the company said that it would deliver up to 25 battery powered Tre semi trucks in the US before the end of the year. NKLA is ramping up assembly with a new line in Ulm, Germany with industrial partner Iveco and its new Coolidge, Arizona, factory that will start building vehicles in 2022.
SOFI Technologies announced that the Company will redeem all of its outstanding warrants at 5:00 p.m. New York City time on December 6, 2021, for a redemption price of $0.10 per Public Warrant. Any Warrants that remain unexercised will be void and no longer exercisable, and the holders of those Warrants will be entitled to receive only the redemption price of $0.10 per Warrant.
Virgin Orbit has entered into an MOU with ANA Holdings (Japan’s largest airline), to procure twenty flights of the LauncherOne rocket and to lead the effort to provide funds and support for those orbital missions to launch from Japan’s Oita Prefecture.
The terms call for ANA and several of its partners to fund the manufacturing of a new set of the mobile ground support equipment used to prepare Virgin Orbit’s LauncherOne system for a flight from a pre-existing runway, with a target of making Oita a LauncherOne-ready spaceport by as soon as the end of 2022, pending appropriate regulatory approvals in the United States and Japan.