SPACUpdate Sees More SPAC Developments (CIO, AXG, NLX, DJSP, HMR)

January 19, 2010 by Douglas A. McIntyre

We have been given some exclusive coverage on the recent developments in special purpose acquisition companies and blank check companies from this morning.  Deal news has been seen in Asia Special Situation Acquisition Corp. (AMEX: CIO), Atlas Acquisition Co. (AMEX: AXG), Overture Acquisition Co. (AMEX: NLX), Chardan 2008 China Acquisition Co. (NASDAQ: DJSP), and Sports Properties Acquisition Co. (AMEX: HMR).  There have been some positive developments in these, with some not looking so positive in the sector of blank check and special purpose acquisitions.

Asia Special Situation Acquisition Corp. (AMEX: CIO) has turned itself around with a brand new target and a deal just two weeks before the SPAC was set to expire; its deal vote is today. The SPAC looks to merge with the assets of hedge funds and insurance companies under the name Gerova Capital Corp. It enlisted buyback champ Victory Park Capital Advisors and embarked on a $28 million dollar buyback spree of its own that catapulted warrants from being worth pennies to trading around $1. This marks an impressive rebound for a SPAC that had its initial target spurn its offer with a deadline fast approaching, costing the blank check its CEO just weeks away from its redemption date. Despite the blank check’s prior missteps, gives Asia Special Situation Acquisition Co. a high probability of getting its deal done today.

Also this week, Atlas Acquisition Co. (AMEX: AXG) will request on Jan. 20 its shareholders provide it with a few weeks more before its liquidation deadline in order to prepare its deal with Koosharem Corp.’s Select Staffing. With staffing services getting continued valuation boosts thanks to their popularity through the lingering recession, sources and research indicates this SPAC timed its target selection well. The SPAC looks to delay its vote until mid-February; so if it succeeds Wednesday, look for warrants to get a boost from the $0.30 range at which they have recently traded.

Already, Overture Acquisition Co. (AMEX: NLX) shares are trading at around their redemption value, despite the SPAC’s deal vote of Jan. 27 being more than a week away. The SPAC’s deal to bring public a subsidiary of Jefferson National Life Insurance Company in Bermuda requires its target to put cash into buybacks, which should help Overture Acquisition Co.’s odds. The SPAC will restructure its warrants (currently trading around $0.30); it has yet to announce any specific buybacks as part of its deal.

Finally, last week, as expected, Chardan 2008 China Acquisition Co. (NASDAQ: DJSP) successfully completed its deal and Sports Properties Acquisition Co. (AMEX: HMR) saw its merger slip through the cracks. Chardan (formerly trading under CACA) has performed well since its deal’s completion. will continue to monitor blank checks and their ongoing deal situations.

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