Banking & Finance

Some Miracle SPAC Deals Succeed, Some in De-Listing Danger (NLX, CIO, ARR, BPW, TLB, UEI)

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 have been key developments in Overture Acquisition Co. (AMEX: NLX), Asia Special Situation Acquisition Co. (AMEX: CIO), ARMOUR Residential REIT Inc. (ARR), BPW Acquisition Co. (AMEX: BPW), The Talbots Inc. (NYSE: TLB), and Ultimate Escapes (AMEX: UEI).  We have details on each below.

Overture Acquisition Co. (AMEX: NLX) will have its deal vote today to bring public subsidiary of Jefferson National Life Insurance Company in Bermuda. The SPAC was said to be having difficulty completing buybacks, but it announced yesterday it has teamed up with hedge fund Victory Park Capital Advisors in a campaign to buy out votes against its merger. SPACupdate.com predicts this merger will be completed at the last second; warrants for Overture doubled yesterday on the news of Victory Park’s involvement.

Asia Special Situation Acquisition Co. (AMEX: CIO) completed its last-second merger to become a reinsurer and owner of several investment firms last week with the help of Victory Park Capital Advisors, taking its warrants from the bargain bin and catapulting their value. Since then, the company’s shares have traded down nearly 20%, however.

ARMOUR Residential REIT Inc. (ARR) was de-listed from the AMEX after attempting to appeal the exchange’s initial ruling. In 2009, the exchange told ARMOUR it had too few shareholders—as it warned several companies brought public via SPAC. ARMOUR was brought public via Enterprise Acquisition Co.; that SPAC was helped past the finish line (as several blank checks were last year) by Victory Park. The company has applied to have its shares traded on NASDAQ.

BPW Acquisition Co. (AMEX: BPW) will have its vote date on Feb. 24 for its common shareholders who will decide whether or not the SPAC provides ailing retailer The Talbots Inc. (NYSE: TLB). Its warrant vote is expected to be held separately from the common vote; SPACupdate .com is carrying exclusive news on the SPAC’s warrant vote.

Ultimate Escapes (AMEX: UEI) might not remain on the AMEX for so long. The resort operator brought public via Secure America Acquisition Co. (and, again, helped to the finish line by Victory Park) was rapped with a second de-listing threat from the exchange recently. Several other SPACs were given de-listing threats by the AMEX in 2009; it remains to see how several of those will play out.

With more merger votes coming soon, SPACupdate .com will continue to monitor blank checks and their ongoing deal situations.

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