SUBSPAC

Softbank’s Second SPAC Attempt

Today we cover $SVFC, $KPLT, $BKKT, and more…

Supply Chain bottlenecks are now the new reality, but one robotics firm sees itself being the solution and is seeing interest from Softbank. A Buy Now, Pay Later firm that was hammered earlier in the year for underdelivering may be discounted far enough to take a second look at. Finally, Bakkt has a shaky market debut after a lot of hype. Read today’s Dish to find out the details about all things SPACs.


Walmart Backed Robotics Firm in Talks with SoftBank SPAC 

  • Walmart Backed Symbotic is in merger talks with a SPAC backed by SoftBank at a $4.5 Billion Valuation. 

  • The deal with SVF Investment Corp 3 may include participation from Walmart in a PIPE round of the deal. 

  • Symbotic’s robots have been pivotal in Walmart’s distribution centers in the last few months, with increased labor shortages plaguing supply chains in the US. 

Robotics and Automation firm Symbotic is in talks to merge with SPAC SVF Investment Corp 3, in a deal that may value the combined firm at $4.5 billion. Symbotic’s robots are currently operational in dozens of Walmart Distribution Centres in the US after the two companies announced a partnership back in July.

The unprecedented strain on the supply chain comes as a result of labor shortages, the energy crisis, and shipping bottlenecks combining to pose enormous challenges ahead of a busy Christmas trading period. The deal between Symbotic and SVF may help fund the necessary capital required to deploy automation at scale around the US. But the deal is still uncertain and very well could be called off like SVF’s $2 billion canceled deal with location data services firm Maplebox earlier in the year.


SPACs to Watch

$KPLT is a Discounted BNPL Play 

  • Katapult Holdings is a discounted Buy Now Pay Later firm that looks attractive at $4.9, trading at a forward P/S ratio of 2x. 

  • Q2 saw shares crash as LTO origination was down 17% YOY, but this was primarily down to an exceptional Q2 2020 due to stimulus checks. Looking at sequential growth, the company remains on track based on its projections. 

  • KPLT also announced a partnership with Salesforce and Adobe in September and Amazon (through Affirm Connect) which should help alleviate the risk of revenue concentration from Wayfair (currently 70% of revenues).  

KPLT, which currently has a market cap of $475 million seems to have priced in the recent risk and has plenty of upside. At 2x FY22 sales, Katapult is cheaper than comparable BNPL firms $UPST and $DLOA. Q3 earnings are expected on 9th November and with very low expectations from the street, investors could see a positive surprise in the next quarter.


Reddit Reads

$NGAB Northern Genesis Acquisition Corp. II Announces Special Meeting Date for Deal with Embark Trucks, Inc.

A special meeting of Northern Genesis 2 stockholders to approve, among other things, the proposed business combination will be held in virtual format on November 9, 2021, at 9 a.m.

A Bear Case for $BKKT

Financial Services company Bakkt, which went public yesterday with a SPAC merger with VPC Acquisition Corp, could see some profit-taking with low cryptocurrency revenues, user growth coming in below forecasts, and post de-spac volatility.

Q3 Earnings Incoming

 


 

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