Banking & Finance

SPAC Votes Coming (TTY, EDS, NAQ, CLA, EST, TCW) has provided 24/7 Wall Street with some exclusive coverage on key issues coming up in the realm of special purpose acquisition companies.  2020 ChinaCap Acquirco (NASDAQ: TTY; NASDAQ: EDS) is on deck for its deal vote. NRDC Acquisition Co. (AMEX: NAQ) is adopting a REIT-strategy that differs from what was seen in Capitol Acquisition Co. (AMEX: CLA) or Enterprise Acquisition Co. (AMEX: EST).  Triplecrown Acquisition Co. (AMEX: TCW) also has a vote coming up.  More detailed information is provided below on each company.

2020 ChinaCap Acquirco (NASDAQ: TTY; NASDAQ: EDS) looks to cash in on rising investor sentiment in China that has buoyed SPACs’ success as an asset class all year. Oct. 19, the $69 million blank check will have its deal vote and multiple sources have confirmed the SPAC will likely succeed in getting its target, Windrace International, a Chinese apparel maker, through its merger. Already, the SPAC’s shares, at $7.93, are trading slightly above their redemption value—an anomaly that has been increasingly occurring for blank checks lately—and its warrants are at $1.73. In anticipation of its deal’s completion, the SPAC has already moved its shares to the NASDAQ.

NRDC Acquisition Co. (AMEX: NAQ) is mimicking the expected success of SPACs that are buying or have bought REITs—except, instead of trying to buy one, like Capitol Acquisition Co. (AMEX: CLA) or Enterprise Acquisition Co. (AMEX: EST), the $414 million SPAC has elected to become one, with its shareholders expected approval on Oct. 20. For a while, NRDC shares have traded above their redemption value, making that SPAC and 2020 ChinaCap two of the three currently trading at such a high value. Shares are trading at around $10.40, about five percent above trust. Recently, warrants were trading at around $1.05 and market sources have indicated the blank check’s deal will be pushed through.

Investors have not been as high on Triplecrown Acquisition Co. (AMEX: TCW), the SPAC that looks to bring public Natural Dairy, a subsidiary of Cullen Agricultural Technologies. The SPAC wants to buy the milk farm process optimizer that will also use proceeds from the $552 million blank check to buy distressed properties—namely, farmland. It is expected that on Oct. 21, the SPAC will convene shareholders for a deal vote; the blank check only has until Oct. 22 before it will be forced to liquidate without a completed merger. Shares have been trading recently at around $9.24, more than $0.50 off trust, and warrants are selling for a mere $0.09.

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October 19, 2009