HICKS ACQUISITION (NYSE: REN): The SPAC’s deal with Graham Packaging on life support, dealmaker Thomas O. Hicks rejuvenated his $550 million SPAC with a new target, Resolute Energy Corp. Investors including SPO Advisory piled on and the merger pulled through, taking warrants that were worth $0.08 just weeks away from the SPAC’s deadline and inflating their value to $2.17 on Dec. 18. Since the IPO, units are up more than 30 percent.

TM ENTERTAINMENT (AMEX: CCME): The Ted Green-led SPAC went from, in March, being sued by Bulldog Investors to liquidate early, to finding a winning target in China MediaExpress. The $82 million SPAC went on a successful warrant buyback campaign after the deal was completed, buying nearly 2 million warrants at $0.50 a pop. The company’s revenues grew 65% last quarter and net income was up 43 percent. The SPAC’s units have more than doubled in value from their worth at the time of the IPO, making this deal one of the best SPACs of the recession.

SPRING CREEK ACQUISITION (NASDAQ: AUTC): The Mighty Mouse of this year’s SPACs at $41 million, Spring Creek brought AutoChina International public in April 2009 and almost immediately began working to sell the company’s dealership business to focus on auto financing. The result was an explosion of value that investors have been riding for eight months. Target managers who decided to buy warrants prior to the deal’s vote saved a mint in cash and dilution. Warrants went from trading for pennies to hitting an eye-popping $20 each as they became eligible for redemption and the SPAC’s units are up a mind-boggling 400%-plus. Yes: four hundred percent.

Losers:

GLOBAL CONSUMER ACQUISITION (WLBC): First, the SPAC sought to bring public some assets of Colonial Bank, but that target failed and was bought by an owner who then refused to sell to the SPAC. Not being short on banks desperate for a capital injection, management arranged a new merger to bring Service1st Bank of Nevada and 1st Commerce Bank public. It worked—until it didn’t. Days after the deal’s completion in October, AMEX officials notified the merged entity, now called Western Liberty Bancorp, it would be de-listed for not maintaining enough shareholders. 1st Commerce then dissolved its merger agreement, leaving Global Consumer and Service1st looking for a new exchange to trade on (it is trying to get onto NASDAQ) as well as a new target. The SPAC’s units are trading 15% below their IPO value now—but the blank check’s management at least succeeded in getting a deal done.

ASIA SPECIAL SITUATION (AMEX: CIO): In March 2009, Asia Special Situation announced a deal to buy White Energy, an Australia-based energy supplier for Korea. Months dragged on until July, when the SPAC amended its agreement to offer the target more cash. As the vote date drew closer, the target got cold feet and in November instead opted to accept a $100 million capital injection from an outside investor. The SPAC—which might have had success had it sped its deal vote’s arrival—will liquidate, more than nine months after its merger was first revealed.

PINPOINT ACQUISITION (PPAC): In May, Pinpoint Acquisition announced a deal had not materialized sufficiently and that it would liquidate, retaining only a few thousand dollars and remaining a shell company in search of SPAC-capital. After holding onto shareholders’ redemption checks for up to seven months following the liquidation announcement, the SPAC found a new way to raise funds. It sued former target Elbit Systems for bad faith for a deal that had fallen apart months earlier. That suit has yet to proceed.

Other SPACs getting high marks for 2009 include GHL Acquisition Co. (NASDAQ: IRDMU), 2020 ChinaCap (NASDAQ: EDS) and China Opportunity (GGEEF). More blank checks that ran into difficulty after the merger include Triplecrown (OTC: CAGZ), InterAmerican (IAQG), and Alyst (OTC: CNWHF). 2010’s SPAC deals already have investors buzzing; the BPW-Talbots (AMEX: BPW) deal pushed the SPAC’s shares past redemption value almost immediately. Chardan 2008 China (AMEX: CACA) reversed course; that SPAC has sized up a Florida-based company that processes property bankruptcies for a deal. That blank check, too, is currently seeing its shares trade above trust. New SPAC GSME Acquisition Co. (OTC: GSMEF) priced late this year, marking the first post-recession blank check to emerge and 57th St. Acquisition Co. continues to raise capital. Smaller and boutique banks keep working to connect SPAC sponsors with management teams and in Toronto, the TSX awaits its first blank check.

For more on these and other SPACs, please visit www.SPACupdate.com.

Inter-Atlantic Financial (AMEX: IAN) saw its deal to buy a Florida insurance company rejected without much fanfare. Little volume in the blank check moved Wednesday, when the SPAC held its vote, almost five months after announcing its intent to buy Patriot Risk Management.

SP Acquisition Holdings, Inc.(AMEX: DSP) cancelled its vote date and announced its merger, set for a vote this week to bring public Frontier Financial, a West Coast banking operation, would not succeed. The SPAC was supposed to have its deal vote on Oct. 8 and investors familiar with the blank check indicated its CEO, Warren Lichtenstein, had been in discussions to buy back shares recently.

Stone Tan China Acquisition (OTCBB: STTA) announced it would give up on its deal and liquidate, just one day after activist stakeholder Bulldog Investors announced a seven percent holding in the SPAC, adding to what was already a lengthy list of shareholders that are yield-to-trust players. The SPAC indicated difficulty getting its deal approved by the Chinese government by its vote deadline would derail the merger.

Tremisis Energy Acquisition Co. II (AMEX: TGY) said the parent company of its target Asiana IDT, a Korean IT solutions firm, Asiana Airlines, has entered into an agreement with the SPAC in which it will buy additional shares so that it will have altogether about 50% of the blank check’s stock once the deal closes. The amended purchase agreement also lets SPAC CEO Sang-Chul Kim keep 10% more of his shares than previously announced. The SPAC’s deal deadline is this December.

Global Consumer Acquisition Co. (GHC) shareholders approved the $300 million-plus SPAC’s deal to become a Nevada banking business Wednesday, marking a victory for a blank check that just weeks prior, saw a portion of its deal vanish when a target was seized by the government and had its assets sold. Global Consumer had to hastily align another target, and did, buying Nevada banking businesses and changing its name to Western Liberty Bancorp.

NRDC Acquisition Corp. (AMEX: NAQ) postponed its deal vote to become a REIT until Oct. 20.

Resolute Energy Corporation (NYSE: REN), the company brought public through Hicks Acquisition Co. (AMEX: TOH) continues to trade above its trust value. Shares closed up about 5% at $10.88 Wednesday and are up another 3.5% today at $11.26 in early morning trading.

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Inter-Atlantic Financial (AMEX: IAN) will, almost six months after its deal was announced, try to capitalize on rising investor sentiment when its deal vote comes Oct. 7 to bring public Patriot Risk Management, a Florida insurance services company. With a shareholder base that is well-populated with yield-to-trust shareholders, the SPAC needed to complete buybacks after its deal was announced.

Frontier Financial Corporation (NASDAQ:FTBK) and SP Acquisition Holdings, Inc. (AMEX:DSP) jointly announced at 8:30 AM EST this morning that they have mutually agreed to terminate their planned merger.  Frontier shares are down some 27% after the open.

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GHL Acquisition Co. (AMEX: GHQ) will have its vote Wednesday, Sept. 23, to bring Iridium Holdings, a satellite company, public. Although the SPAC has until 2010 to complete its merger vote, multiple sources have indicated that, after a lengthy wait for federal approval, the blank check has secured enough votes to complete the deal. GHL’s warrants, now trading at around $3.30, support this.

Hicks Acquisition Co. (AMEX: TOH) will have its vote  Thursday, Sept. 24; the SPAC recently moved its merger vote back by one day. As its vote to bring Resolute Natural Resources public nears, the blank check has increasingly sought out investors to support its deal. Ever since Hicks Acquisition dumped target Graham Packaging, investors SPO Advisory (22.5%) and Advisory Research Fund (5.56%) have taken stakes in the SPAC sources say will be voted in favor of its deal. The blank check has until Sept. 28 to complete its deal. Hicks may be closing in on getting sufficient shareholder support; more than 13 million shares of the SPAC have traded at or around its trust value since Sept. 15. Warrants are trading at around $0.56.

Capitol Acquisition Co. (AMEX: CLA), a $323 million SPAC, will have its vote Thursday, Sept. 24, to bring REIT Two Harbors Investment Corp. public. Monday, the SPAC’s shares briefly traded above trust value, signifying that Two Harbors owner Pine River Capital Management may still be buying shares. Nearly three million shares of the SPAC have been sold since Sept. 15.

Ultimate Escapes Holdings, the resort company to be acquired by Secure America Acquisition Co (AMEX: HLD) added to its portfolio 49 new club properties from smaller competitor Private Escapes appraised at around $50 million. Secure America still needs to execute buybacks to complete its deal deadline of late October, sources said. With a redemption value of $7.94 per share, the SPAC’s shares are trading at $7.88 and warrants are selling for $0.15.

Two SPACs announced deal vote dates last week: Global Consumer Acquisition Co. (AMEX: GHC) will have its shareholders meet to vote on its bank capital injection deal on Oct. 7; SP Acquisition Co. (AMEX: DSP) will meet with shareholders on Oct. 8 to bring Frontier Financial public.

To read more about any of these deals, please visit www.SPACupdate.com.

NRDC Acquisition Co. (AMEX: NAQ) broke this painful streak for blank check management teams. Oddly, it is the only SPAC approaching a deal vote that does not have a specific target in mind.  NRDC simply aims to convert itself to REIT status and begin buying up distressed property. The SPAC’s shares traded up to $10.00 each at the close of trading Monday; recently, warrants sold at around $0.77, marking a substantial rebound. The SPAC’s per-share redemption value is $9.91. NRDC’s vote date comes in mid-October.

NRDC is not the only blank check pursuing real estate investments. Capitol Acquisition Co. (AMEX: CLA) has paired up with Pine River Capital Management’s Two Harbors Investment Corp.  The SPAC’s deal vote must come by early November.

As you will see below, there are many more recent developments in other SPACs and overlapping SPACs that will be coming front and center in the coming weeks.

Elsewhere, GHL Acquisition Co. (AMEX: GHQ) continues to execute buybacks as it approaches its Sept. 23 deal vote date.  Last week came word that Weiss Multi-Strategy Advisers took a stake of 6% in NRDC Acquisition Co. (AMEX: NAQ).  Also last week, Azimuth Opportunity LTD sold out of its stake in 2020 ChinaCap Acquiro Inc. (AMEX: TTY). Previously, it held a 5.6% stake.

Pine River Capital Management last week took a stake of 10% in Si Mei Te Food Co., the company brought public via China Discovery Acquisition Co. (CADUF). The investor, which looks to have affiliate Two Harbors Investment Corp. bought by SPAC Capitol Acquisition Co., has increasingly been buying into companies that were brought public, and lost value, in 2009.

Global Consumer Acquisition Co. (AMEX: GHC) has a new bank to buy, after its deal to buy assets from Colonial Bank fell apart with that target’s collapse. Now—along with 1st Commerce Bank—the SPAC will buy Service1st Bank of Nevada. The new entity will still be known as Western Liberty Bancorp and Service1st executives will mostly populate its top ranks. The SPAC has until late November to complete the deal.

Prospect Acquisition Co. (AMEX: PAX) has a deal to bring public a real estate investment firm with operations in the U.S. and Japan. The $248 million SPAC will buy Kennedy Wilson Inc.; it is requiring redemption of at least half of its warrants at $0.55 each. Warrants that are not redeemed will be subject to higher strike prices and a longer expiration date.  In a statement, the SPAC’s target highlighted distressed opportunities in California, where up to $10 billion in newly-constructed real estate is set to re-price to meet market conditions. The SPAC’s deal deadline comes in November.

Triplecrown Acquisition Co. (AMEX: TCW) is looking to buy Cullen Agricultural Technologies Co., which is rolling out Natural Dairy, a milk-processing optimizer, across the Southeast U.S. The target will eventually also buy up farmland along the Eastern Seaboard, where it looks to bring more efficient processing to the dairy industry. Triplecrown shareholders will wind up with 78% of the company going public; warrant strike prices and expiration dates have both been adjusted up to support the transaction. The SPAC’s deal deadline comes next month.

InterAmerican Acquisition Group (OTC: IAQGU) and China New Cities Development successfully merged, the blank check revealed. The SPAC’s shareholders who supported the transaction will be redeemed $4.85 per share. In days leading up to the SPAC’s deal deadline, the blank check repurchased about $24 million from would-be dissenting voters. The SPAC’s shares traded down more than 33% on the news.

-Brought to us exclusively by the SPACUpdate.com team.

As of August 25, 2009, Arrowgrass Capital Partners announced an 8.4% stake in Secure America Acquisition Co. (AMEX: HLD). The SPAC is yet to identify a target.  Weiss Capital stated in a 13G it has a 1.8% stake in China Fundamental Acquisition Co. (OTC: CFQCF). The SPAC is yet to identify a target.  Weiss Capital sold its stake in Chardan China 2008 Acquisition Co.; previously it held a 5.7% stake (NASDAQ: CACA). The SPAC is yet to identify a target.

As of August 19, 2009, HBK nearly doubled its stake in Westway Group, the company brought public via Shermen WSC Acquisition Co., to 17.4% (OTC: WTWG).

As of August 18, 2009, Victory Park Capital Advisors sold a stake of about 8.5% in AutoChina Intl., the company brought public via Spring Creek Acquisition Co. (OTC: AUCUF). Integrated Core Strategies, the investment arm of Israel Englander, reduced 11% to 2% its holdings in Global Consumer Acquisition Co. (AMEX: GHC).  The SPAC is currently having difficulty securing assets it planned to buy from Colonial BancGroup after that entity failed and was absorbed into BB&T.

As of August 17, 2009, Integrated Core Strategies, took a 5.5% stake in CS China Acquisition Co. (OTC: CSAQF). The SPAC, which has until 2011 to declare a target, has not yet done so.

As of August 14, 2009, Integrated Core Strategies, revealed in a 13D it has a stake of nearly 50% in Westway Group (OTC: WTWG).

As of August 12, 2009, Integrated Core Strategies, reduced its stake in Ideation Acquisition Co. (AMEX: IDI) to 3.3%. A 2007 filing by the investor revealed an 8% stake. The SPAC aims to bring public SearchMedia, a China-based advertiser, by this November.

SPACUpdate also welcomes tips on smaller stake buys at tips@SPACupdate.com.

SPACUpdate.com

The company intends to acquire one or more operating businesses in the global consumer products and services industry, which relates to the commercial delivery of products and services directly to the consumer in both the United States and the international marketplace. Even more specifically, it will focus on acquiring a company that offers a branded consumer product or service that can be expanded globally. Targeted sectors include, but are not limited to, branded consumer products and services, hospitality, entertainment, health, beauty, wellness, apparel, retail, marketing, restaurants and beverages.

This is not the sponsor company’s first dibs in a SPAC here. Global Consumer Acquisition Corp.(AMEX: GHC) is a blank check company that trades currently and it was formed in 2007 the sponsor to acquire businesses in the global consumer products and services industry.

Jason N. Ader is Chairman, CEO & President, and he founded and serves as the president and CEO of Hayground Cove Asset Management, LLC.  Since 2007, Mr. Ader has also served as Chairman of Global Consumer Acquisition Corp.  Since 2006, Mr. Ader has served as Chairman of the Board of India Hospitality Corp., a blank-check company formed to acquire Indian businesses or assets in the hospitality, leisure, tourism, travel and related industries that successfully completed its acquisition of related flight catering, restaurant and hotel businesses in India in July 2007.

Jon C. Ogg
March 4, 2008