The Daily Dish (1/11/21)
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.
We’ll try to lob ‘em up to you in a simple, clean format that you can read in 5 minutes before the market opens. (Trust me, we know what it’s like to wake up at 9:23am).
Here’s the first assist 👇
SPAC with Biden Administration Ties Spits Into Warrants and Common Shares
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Pine Island Acquisition Corp. $PIPP, a SPAC with close ties to the Biden administration is seeking to merge with a defense company. Secretary of State nominee Antony Blinken is an “adviser” to the firm. Defense Secretary nominee Lloyd Austin is also affiliated with the firm, as is Michèle Flournoy, who was also being considered for defense secretary.
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Pine Island recently lowered its fundraising goal from an initial target of $300 million, to $200 million, a move that appears to have expedited its listing on the New York Stock Exchange. While that move will reduce its available capital, it appears to position the company’s shareholders to benefit from any positive news stemming from a potential nomination of any of its partners.
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The Common Stock and Warrants received from the separated Units will trade on the New York Stock Exchange (“NYSE”) under the symbols “PIPP” and “$PIPPWS“, respectively. Units that are not separated will continue to trade on the NYSE under the “$PIPP.U” ticker symbol.
Electric vehicle startup Faraday said to be in talks to go public via SPAC merger
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Faraday & Future Inc., an electric-vehicle startup, is in talks to go public through a merger with Property Solutions Acquisition Corp. $PSAC, a special-purpose acquisition company, according to people with knowledge with the matter.
The special purpose acquisition company is seeking to raise more than $400 million in equity to support the transaction, which is slated to value the combined entity at around $3 billion, the people said. As with all deals that haven’t been finalized, it’s possible that terms change or talks fall apart.
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The company’s shares surged almost 60 percent to above $16 as of 4:00 a.m. Monday in New York, before the start of regular trading, before dropping to around $11.60 before open.
Los Angeles-based Faraday, led by CEO Carsten Breitfeld, was founded by Jia Yueting, an entrepreneur who in October 2019 filed for bankruptcy in the U.S. after running up billions of dollars in personal debt. His efforts to build a business empire in China spanning interests from streaming to TVs saw him borrowing against pledged shares, leaving him on the hook for $2.3 billion in claims, according to the filing. Be cautious with this one.
Pershing Square SPAC’s Unrequited Love Will Be Rewarded
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Pershing Square Tontine Holdings ($PSTH) is considered one of the hottest special purpose acquisition companies for 2021. The company that is sponsoring the SPAC is run by the hedge fund manager Bill Ackman *cough not me*. What makes this SPAC particularly interesting for some investors is that shares of PSTH stock started at a premium $20 share price.
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Bill Ackman’s SPAC, rose as much as 16% on no specific news today, though there was some speculation than any announcement may happen in the new future. The move follows a similar jump on Dec. 23, which also had no specific news behind it. The SPAC saw a big gain at the end of November when S&P agreed to buy IHS Markit, which had some investors thinking that PSTH could look at the financial information space.
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Recall that in October the New York Post reported that Michael Bloomberg was considering selling a stake in the financial information company through a combination with $PSTH, a report that a Bloomberg LP spokesman denied. While trying to mate with a “mature unicorn”, Ackman has said that there are a few key criteria he’s looking for, namely, valuation in excess of $10B and it must be ready to go public in terms of its own staffing and management. $PSTH has been heavily linked to payments behemoth Stripe as well. Curiously enough, Stripe seems to be hiring 500+ new employees. Very interesting to say the least.
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