SPAC Developments Heating Up (NAQ, CLA, GHQ, TTY, CADUF, GHC, PAX, TCW, IAQGU)

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For the first time in more than a year, a special purpose acquisition company, a SPAC, saw its shares broke through their trust value prior to a deal vote. In the last 12 months, blank checks approaching deal votes saw their redemption value as the ceiling for share worth—and after a transaction’s completion, aggressive sell-offs pummeled their target’s value.

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 team.