SUBSPAC

Today we Cover $WALD, $HYZN, $DNA, and more…

While De-SPACs may have seemed like easy targets for short-sellers a few months ago, the combination of strong results and great execution has made it a very costly bet. As the Q3 earnings season continues, a biotechnology company and a hydrogen fuel-powered truck maker beat street expectations and deliver stellar growth. Also, these former L’Oréal executives are teaming up to create the next Skincare giant. Read on to find the latest about all things SPACs.


De-SPACs to Watch

$DNA Beats Expectations in Q3 and Found that Short Seller Claims were Unsubstantiated  

  • Ginkgo Bioworks reported revenues of $77.6 million in Q3, up 271% YoY on account of strong growth in both Foundry and Biosecurity segments. 

Foundry revenues in Q3 stood at $34.7 million (up from $11.5 million last year), which included an equity milestone payment from Cronos for the commercial-scale production of CBG. Ginkgo added 10 new programs in Q3 (year-to-date programs is 21), with 61 active programs during the first three quarters. Biosecurity revenue stood at $42.9 million in Q3 and $86.5 million for the first three quarters, which have now exceeded the company’s guidance of $75 million. Ginkgo also had $1.7 billion in cash on the balance sheet (received $1.6 billion from the SPAC merger), enabling it to pursue strategic partnerships and acquisitions over the next few quarters.

Management also raised the guidance for the full year and expects Foundry revenues to be more than $100 million and Biosecurity revenue to be $110 million (indicating that total revenues will be over $50 million in Q4). Ginkgo also initiated an internal investigation led by independent law and accounting firms and found that the Short seller report from Scorpion Capital was unsubstantiated. Shares of Gingko are now up 35% since Scorpions’ report, making it a very expensive short. 

$HYZN Surges 13% After Beating Street Estimates 

  • Shares in Hyzon Motors rallied as much as 19% on Friday after the company posted an EPS of 13 cents vs analyst consensus of a loss of 8 cents. 

The hydrogen fuel cell electric mobility firm delivered revenues of $962,000 compared to a consensus of $1.95 million. The total operating expenses were $50.6 million for the quarter.

Hyzon received the first two purchase orders for 62 trucks with Shanghai Hydrogen Hongyun Automotive. Management also stated that it would be able to deliver 85 vehicles on the road in Asia, Australia, Europe, and North America by the end of the year. The construction of the company’s US manufacturing facilities in Rochester and Bolingbrook is underway and the facilities will be in full production by the end of the first half of 2022. 


Reddit Reads

$GNRS: Financer Backs Out, DA in Trouble? 

SunStream Bancorp notified Greenrose Acquisition Corp on November 8th that the conditions precedent outlined in the commitment letter have not been satisfied and further notified the Company that SunStream was not prepared to proceed with the proposed financing until they are satisfied. Greenrose is now exploring alternative financing options to fund the deal.

$LIYC could Benefit from a Potential Reconciliation Bill

The reconciliation bill, which is being actively negotiated in Congress this week, will allocate $2.5 billion for advanced energy manufacturing and recycling and another $6 billion in grants for auto battery recycling. Li-Cycle could benefit should the bill pass in its current form.


Meme of the Day 

What you need to know about $GGPI Stock


$WALD will Merge with Obagi and Milk Makeup

  • Skincare company Obagi and Makeup brand Milk Makeup are set to merge with SPAC Waldencast Acquisition Corp in a deal that values the combined business at a $1.2 billion valuation.  

Obagi Medical, which was founded in 1988, helps customers to minimize the appearance of premature skin aging, skin damage, acne, wrinkles, dark spots, and sun damage, with the company’s products primarily being sold through dermatologists, plastic surgeons, medical spas, and other skincare professionals.

Milk Makeup is a vegan makeup brand, that sells cruelty-free and paragon-free makeup through Sephora and other retailers. The new company will be led by Michel Brousset, who is the co-founder of Waldencast and previously served as the group president of L’Oréal North America Consumer Products. Hind Sebti, the other SPAC co-founder will operate as the group’s COO. Brousset stated that the new company will look to use proceeds from the merger to pursue strategic acquisitions of smaller beauty and wellness brands. 


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