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The Daily Dish (3/24/21)

Welcome to the Daily Dish. Every morning in your inbox subscribers receive some Dishes that we find interesting and we think that you should know more about.

Here’s the first assist 👇

Velo3D to Go Public through Combination with $SPFR

VELO3D and Honeywell Aerospace Enter Partnership to Qualify VELO3D's  Sapphire™ Metal 3D Printer for Production of Aircraft Components | Business  Wire
  • Velo3D Inc. has announced to enter into an agreement with JAWS spitfire at an enterprise value of around $1.6 billion.

  • This transaction positions the 3D printing machines manufacturer for never-ending growth and success in the expanding market.

  • With JAWS Spitfire’s long-standing relationship, Velo3D is expected to bring innovative methods that were previously impossible.

  • As the transaction closes, Velo3D will have $345 million in proceeds from SPFR cash in trust as well as a$155 million private placement of the stock at a per-share value of $10.00.

Richard Branson Plans Next SPAC Deal for Virgin Orbit

How Richard Branson maintains the Virgin Group
  • Richard Branson is looking for a special-purpose acquisition company to merge with another of his space companies, according to a person familiar with the matter.

  • The billionaire’s satellite launcher, Virgin Orbit, has hired bankers including Credit Suisse Group AG to scout for a SPAC to take the company public with a valuation of as much as $3 billion

  • Branson’s Virgin Galactic Holdings Inc., which is developing a business to carry tourists to the edge of space, pioneered the SPAC boom for space companies with a 2019 deal. Credit Suisse and LionTree assisted with that merger, which raised $800 million for Virgin Galactic.

  • Virgin Orbit’s two-stage rocket attained orbit for the first time in January, deploying 10 small CubeSats as part of a National Aeronautics and Space Administration program. The company’s vehicle drops from the wing of a Boeing Co. 747 jet above 35,000 feet before igniting flying to space. The rocket failed to reach orbit during a previous launch attempt in May 2020.

Mainstreet Media Thinks The SPAC Bubble May Burst Soon – Again

Bubble Pop: Reflection Perfection | I think this is approach… | Flickr

I’ve spent the last week on vacation, and consequently, have had business television on a little more. Holy shit that was a mistake. All the talking heads basically repeat the same things over and over again all day long and in 15 different ways. Here’s a recap.

What I’ve heard about SPACs from watching CNBC the last week (The Bear Case):

  • SPAC have been hot in the recent past and raised more equity in 2020 than ever before

  • More and more SPACS hit the market. SPAC IPOs reached 200 last year, and the number is likely to surpass 1000 this year.

  • Huge Investment came from hedge funds, and colossal equity was raised. However, this trend might end poorly for investors.

  • SPACS represents a bubble pattern, and this bubble may burst in the near future as the over-generated hype caused SPACs to underperform out of the market.

  • The performance of high-quality SPAC mergers seems unimpressive, making everyone think that SPACs suffer from dilution.

Editor’s Takeaway (The Bull Case)

  • They are all hot takes – probably because they missed most of the SPAC mergers last year

  • Higher interest rates are causing SPAC IPO’s to be vulnerable to the overall market flows.

  • We saw a SPAC sector drawdown two times last year

  • SPACs are here to stay because it’s a quicker option to take a company public

  • For investors who make smart bets and identify winner deals, 2021 will be a great year.

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There’s No I In Trade

My goal is to create a community where people can educate themselves through the world of investing. I can’t do that alone, we need to build this community together. So tell me what you’re loving, tell me what you want to see more of tomorrow.

Disclaimer: This is not financial advice and should not be interpreted as such. I am not a financial advisor. I may currently own or have owned many of the securities mentioned above – but that does not mean I am invested now. My investing method is highly risky swing trading which means I am constantly in and out of positions. Please do your own research or hit up the #SPACsquad on Twitter to learn more about SPACs.

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