Chardan SPAC Deal Vote Kicks off Weeks of SPAC-tion (CACA, HMR, CIO)

We have been given some exclusive coverage on the recent developments in special purpose acquisition companies and blank check companies from SPACupdate.com this morning.  There is still much going on in the sector, and the key deals covered this morning are in Chardan 2008 China Acquisition Co. (NASDAQ: CACA), Sports Properties Acquisition Co. (NYSE: HMR), and Asia Special Situation Acquisition Co. (AMEX: CIO).  More detail has been provided on each.

Chardan 2008 China Acquisition Co. (NASDAQ: CACA) will have its deal vote today to bring public DAL Group, a Floridian mortgage services processor. The SPAC’s warrants are selling for a whopping $4 a pop and its shares surpassed their redemption value and continued to trade up almost immediately after the deal was announced. Because of the market’s reaction to the SPAC’s redirection, we expect this deal vote will pass with ease.

On Jan. 15, Sports Properties Acquisition Co. (NYSE: HMR) will convene shareholders to vote on its deal to become a taxicab medallion manager and to change its title to Medallion Management. The SPAC has set out on multiple buyback campaigns, but its warrants have not taken a price spike that would signal investor confidence. However, the SPAC’s shares are trading well beneath their redemption value; Sports Properties is one of the biggest remaining blank checks awaiting a deal vote, so we suspect more buybacks will be necessary.

Stunningly, Asia Special Situation Acquisition Co. (AMEX: CIO) has cobbled together a last-second deal pitch on the heels of its first merger attempt’s failure. The SPAC wants to acquire an 81.5% stake in Allied Provident Insurance Co., a reinsurance company, and the assets of hedge funds Stillwater Funds, Wimbledon Financing Master Fund and Wimbledon Real Estate Financing Fund. The SPAC also plans to buy Northstar Group, which operates two insurance entities in Bermuda and Ireland. The merged entities’ name will change to Gerova Capital Corp. Asia Special Situation warrants are selling for around $0.40 and its shares are trading more than $0.50 off their redemption value. These facts aside, we predict it will be difficult for the SPAC to wrap a brand new deal in just 12 short days—although the SPAC’s management team has earned praise for hastily trying to save their blank check’s future in short order. The SPAC will have its merger vote on Jan. 19.

Plenty more action lies ahead this month for blank checks so SPACupdate.com will continue to weigh on 247WallSt.com with the latest breaking news.