Rigetti stalls out of the gate, Chamath faces the music at CLOV, and three new IPOs

Three new SPAC IPOs, retail squeeze fave ESSC extends vote again, and Chamath faces the music at CLOV

Author:
Joanna Makris
Publish date:
Mar 2, 2022 5:21 PM EST

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Chamath will face the music at Clover

Even the "King" must head the law. Our favorite SPAC badboy Chamath Palihapaitiya is back in the spotlight. This time, he's in the crosshairs of a shareholder lawsuit against Clover Health (CLOV). The suit claims the company misled investors about the health insurance company when it went public via one of Palihapitiya's many SPACs. Today, U.S. District Judge Aleta Trauger declined to dismiss the case, allowing investors to proceed with allegations Clover lied about the source of its growth and the existence of a U.S. Department of Justice probe into the company. Recall Chamath got some attention recently from some eye-popping gains on the sale of his stake in space tourism operator Virgin Galactic (SPCE).

Three new SPAC IPOs

Sound Point Acquisition Corp. I (SPCM) prices upsized IPO. Details here. $225M (upsize), 1/2W, $10.30 trust. The Company hasn't announced a target but intends to concentrate its efforts in sectors where Sound Point Capital Management, LP, an affiliate of the Company's sponsor, has relationships and experience.

SHUAA Partners Acquisition Corp. (SHUA) prices downsized IPO. Dubai investment bank and asset manager SHUAA Capital joins a handful of Middle East SPACs, pricing a $100M IPO today. 1/2W, $10.25 trust. Details here. The company is led by CEO and Director Fawad Tariq Khan, a Managing Director at SHUAA Capital. SHUA plans to target a tech company based in Middle East, North Africa, and/or Turkey.

Kensington Capital Acquisition IV (KCAC) priced a $200M offering that carries 1 Class 1 Warrant and 1 Class 2 Warrant. The 4th of from Justin Mirro, Kensington V (KCGI) already priced in August and is searching for a deal. While DeSPACs WallBox (WBX) and QuantumScape (QS) are holding their own relative to some other DeSPAC disasters.

Elsewhere in SPACs

Rigetti goes live. On the heels of fellow Quantum Computing deSPAC IONQ (IONQ) which came out in October, Rigetti Computing closed its merger with Supernova Partners Acquisition Company II, and began trading today under the symbol RGTI. Shares closed at $9.43, down 3%.

Low float squeeze alert: Eaststone Acquisition Corp. (ESSC) finally released voting info from their 2/24 extension vote. Shareholders redeemed just 361 shares for $3.7k (at $10.26), but lest not forget ~76% of the SPAC had already redeemed in a prior vote. See the filing here. The company has already announced a proposed merger with JHD Holdings, a merchant enablement platform serving lower-tier cities in China. This is the third extension, now out to 8/24. ESSC stock has been on a wild ride, peaking at over $18 back in December. High redemptions/low float makes this stock a favorite squeeze candidate for the retail crowd.

Jason Tan's Jeneration Acquisition pulls the plug. In the world of withdrawn IPOs, Hong-Kong-based SPAC Jeneration Acquisition Corp.(JACAU) is the latest to pull the plug. The firm withdrew its plans for a $300 million IPO. The company was to be led by CEO and Director Jason Tan, a Partner and the CIO of Jeneration Capital, and Chairman Jimmy Chang, the founder of Jeneration Group and a Partner of Jeneration Capital. JACAU had planned to target technology and technology-enabled models in Asia, particularly in Greater China, including in mobility, online services, software, e-commerce, AI, robotics, and clean energy.