Nightcap

SPAC Track's Nightly Newsletter

Nightcap: Gores wants his shot at an EV SPAC and Chamath is skipping the gym altogether

Nightly recap of the day’s SPAC highlights (July 8, 2021)

The Stats:

The Deals:

1) HealthCor Catalio Acquisition Corp. (HCAQ: $9.98) & Hyperfine and Liminal Sciences

Hyperfine, Inc., Creator of the First FDA-Cleared Portable MRI Device, and Liminal Sciences, Inc. To Be Listed on Nasdaq Through a Business Combination With HealthCor Catalio Acquisition Corp. (Press Release)

 

  • Merger Partner Description:

  •  

Hyperfine:

Hyperfine’s Swoop™ Portable MR Imaging System is designed to address the limitations of current imaging technologies and make MRI accessible anytime, anywhere, to any patient. Swoop™ wheels directly to the patient’s bedside, plugs into a standard electrical wall outlet, and is controlled by an Apple iPad®. Designed as a complementary system to traditional MRIs at a fraction of the cost, images that display the internal structure of the head are captured by Swoop™ at the patient’s bedside, with results in minutes, enabling critical decision-making capabilities across a variety of clinical settings.

 

Liminal Sciences:

Liminal Sciences is committed to building a device to non-invasively measure key vital signs in the brain, in order to enable unprecedented access to dramatically improve patient outcomes. Liminal was founded in 2018 by Dr. Jonathan Rothberg.

 

  • Valuation: $581M Pro-forma EV

  • PIPE: $126M PIPE including investments from HealthCor Management LP, Catalio Capital Management, Perceptive Advisors, Avidity Partners, Eldridge, accounts managed by ARK Investment Management LLC, Deerfield Management, and Bain Capital Public Equity, LP.

  • Hyperfine (Hyperfine + Liminal Sciences) Investor Presentation

  •  

2) Concord Acquisition Corp (CND: $10.55) & Circle

Circle to go public through a business combination with Concord Acquisition Corp, supported by over $1.1B in capital (Press Release)

 

  • Merger Partner Description:

  •  

Circle is a global financial technology firm that enables businesses of all sizes to harness the power of digital currencies and public blockchains for payments, commerce and financial applications worldwide. Circle is the principal operator of USD Coin (USDC), which has become the fastest growing, regulated, fully reserved dollar digital currency. USDC in circulation is greater than $25 billion and has supported over $785 billion in on-chain transactions. Today, Circle’s transactional services, business accounts, and platform APIs are giving rise to a new generation of financial services and commerce applications that hold the promise of raising global economic prosperity for all through programmable internet commerce. 

 

  • Valuation: $4.5B Pro-forma EV

  • PIPE: $415M including investments from Marshall Wace LLP, Fidelity Management & Research Company LLC, Adage Capital Management LP, accounts advised by ARK Investment Management LLC and Third Point

  • Circle Investor Presentation

 


3) Healthcare Capital Corp. (HCCC: $9.79) & Alpha Tau Medical

 

Alpha Tau and Healthcare Capital Corp. to Combine and Create A Publicly Traded Company Focused on Transforming the Treatment of Solid Tumors Through the Precision Delivery of Alpha Radiation (Press Release)

 

  • Merger Partner Description:

Founded in 2016, Alpha Tau Medical Ltd, is an Israeli oncology therapeutics company that focuses on research, development, and commercialization of the Alpha DaRT™ technology for the treatment of solid tumors. 

 Alpha DaRT™(Diffusing Alpha-emitters Radiation Therapy) is an innovative technology that enables the highly potent and uniquely conformal alpha-irradiation of solid tumors. The treatment is delivered by intratumoral insertion of radionuclide Radium-224, which leads to the release and diffusion of daughter radioisotopes that emit alpha particles. These alpha particles have the capacity to destroy solid tumors. Since the alpha-emitting atoms diffuse only a short distance in tissue, Alpha DaRT mainly damages the tumor, while sparing the healthy tissue around it.

 

  • Valuation: $650M Pro-forma EV

 

  • PIPE: $92M fully-committed including investments from Yozma Investment Co. (part of Yozma Group Korea), Grand Decade Developments (an affiliate of China Grand Pharmaceutical and Healthcare Holdings), Medison Group, OurCrowd, Regah Ventures and the co-founders of Apax Partners, Alan Patricof and Sir Ronald Cohen.

 

 

Deal News Reports:

Volvo-Backed Polestar Is in SPAC Merger Talks With Gores Guggenheim (article behind paywall)

Polestar’s Precept concept EV

Polestar, the electric-car maker controlled by Volvo Car AB and its owner Zhejiang Geely Holding Group Co., is in talks to go public through a merger with Gores Guggenheim Inc. (GGPI: $10.23), a blank check-firm, according to people with knowledge of the matter. Gores Guggenheim rose as much as 7.7% on the news.

A transaction may value the combined company at around $25 billion, the people said. No deal has been reached and it’s possible terms could change or that talks fall apart.

 

Jennifer Kwon Chou, a Gores Guggenheim representative, and a Polestar spokesperson declined to comment. A spokesman for Volvo in the U.S. didn’t immediately respond to a request for comment. A Geely spokesman didn’t respond to a request for comment outside of Asian business hours.

 

Gothenburg, Sweden-based Polestar, led by Chief Executive Officer Thomas Ingenlath, is a rival to Tesla Inc. and EV maker Lucid Motors. It had been exploring options for going public as early as this year, Bloomberg News reported in March.

 

The company’s second vehicle and first all-electric car, the Polestar 2, started production in March at Geely’s plant in Luqiao, China. In September, the automaker said it would put another car, the Polestar Precept, into production. That vehicle’s interiors will be made out of recycled PET bottles and cork vinyl as well as reclaimed fishing nets.

 

Last month, the company said the Polestar 3 — an SUV — will be built in Ridgeville, South Carolina, in a plant opened by Volvo Cars in 2018. “Production in the USA makes procurement more efficient, reduces delivery times and will even have a positive impact on the price of the Polestar 3 SUV,” Polestar Chief Operating Officer Dennis Nobelius said at the time.

 


Equinox’s Merger Talks With Palihapitiya-Backed SPAC Have Ended (article behind paywall)

Equinox Holdings, the luxury gym operator popular among celebrities and financiers, is no longer in talks to go public through a merger with a blank-check company backed by investor Chamath Palihapitiya, according to people with knowledge of the matter.

Negotiations between Social Capital Hedosophia Holdings Corp. VI (IPOF: $10.04) and Equinox, which also operates SoulCycle indoor-cycling centers, fell apart due to a disagreement over the combined company’s valuation, one of the people said. Bloomberg News in May reported the two parties were in discussions regarding a transaction that may have valued the merged entity at more than $7.5 billion.

 


Quick News Corner:

 


IPOs to Begin Trading Tomorrow*:

1) Acropolis Infrastructure Acquisition Corp. (ACRO-U)

  • $300M, 1/3 warrant

  • Focus: Infrastructure

  • Sponsor: Apollo

  • Sponsor’s Previous SPAC Activity: Spartan Acquisition Corp. II (SPRQ: $9.96) announced a merger deal with Sunlight Financial in January and its shareholders approved the deal today.

*Priced at the time of this writing


 

New S-1s (3)

1) AxonPrime Infrastructure Acquisition Corp (APMI)

  • $150M, 1/3 warrant

  • Focus: Infrastructure

  • Management:

    Dinakar Singh (CEO of Axon Capital), Dakin Sloss (Founder & General Partner of Prime Movers Lab, and Director of Momentus and Heliogen)

  • Directors:

    Richard Spencer (Former Vice Chairman & CFO of Intercontinental Exchange)

  • S-1 Link

 

2) Millstreet Capital Acquisition Corp. (MLST)

  • $125M, 1/2 warrant

  • Focus: Stressed, distressed, and reorganized companies

  • S-1 Link

 

3) Parsec Capital Acquisitions Corp. (PCX)

  • $50M, 1 warrant

  • Focus: Space economy, transportation and technology adjacent industries

  • Directors:

    Edmund Moy (Former Director of the United States Mint), Daniel Elwell (Deputy and Acting Administrator of the FAA), Alec Burger (Former CEO of GE Capital)

  • S-1 Link

 


Upcoming Dates:

This Week’s Announced Shareholder Meetings, Unit Splits, Warrant Redemptions:

 

Friday, July 9th

  • Warrant Redemption: Opendoor Technologies (OPEN: $15.81)

  • Unit Split: GigInternational1, Inc. (GIWW-U: $10.08)

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