Peak Mania: SPAC Literally Called “Just Another SPAC” Files For IPO
There are so many SPACs hitting the market, sponsors aren’t even getting creative with the names anymore.
Gone are the days of “Queen’s Gambit”, “Social Hedosophia” and “Pershing Square Tontine Holdings”. And here are the days of the truly mundane cash grab – the SPACs aren’t even trying to hide their apathy toward the details anymore.
Such was the case when “Just Another” SPAC filed Tuesday with the SEC for an IPO to raise $60 million. The entity is literally called “Just Another Acquisition Corp.”
And that’s truly what it is. About 45 days into 2021, there have been 145 new SPACs, an average of nearly 5 per day. This pace will see SPAC volume surpass last year’s $83 billion in less than a month. “Just Another” SPAC says its looking for targets with valuations between $300 million and $1 billion, according to Bloomberg, who also profiled its executives:
Philip Wagenheim, a former managing partner at Broadband Capital Partners LLC, is chief executive officer, chief financial officer and chairman of the SPAC. Ladenburg Thalmann is the adviser of the offering. Just Another Acquisition seeks trade on the Nasdaq Capital Market under the symbol JAAC.
237 SPACs debuted on U.S. exchanges in 2020, raising $83 billion. At least 54 have started trading this year. One of the more successful SPACs to have launched in 2020 was DraftKings, while fellow SPAC Nikola drew intense criticism after being labeled “an intricate fraud” by noted short seller Hindenburg Research.
This month, baseball legend Alex Rodriguez also filed for a $500 million SPAC called “Slam.” Just days ago we noted that Colin Kaepernick – not one to leave himself out of a national conversation about anything – was also launching his own socially conscious SPAC. And forget about selecting a team with the best business acumen for investors, MarketWatch reported that Kaepernick will be picking his board of directors specifically by race and gender. And it appears no white males will be allowed:
As an indication of its mission, the company’s board of directors is 100% Black, Indigenous and people of color, and is majority female. Directors include Google marketing executive Attica Jaques, former Apple executive Omar Johnson and Birchbox co-founder and CEO Katia Beauchamp.
Recall, we wrote last month that there are so many SPACs that ETFs dedicated to them were starting to emerge. For those that need clarity, we are talking about the brilliant idea of a passively managed ETF that invests in companies with no business or operations yet.
The Accelerate Arbitrage Fund was launched in April by Julian Klymochko, Bloomberg noted on Thursday, and now has exposure to 150 SPACs. The firm is shifting its business model from boring old arbitrage to the newer, shinier and more exciting SPAC world. Why? Because SPACs have become “so lucrative”, Klymochko says.
The ETF trades on the TSE and has returned about 42% since April 7. This compares to the 8.9% return offered over the same time from the S&P Merger Arbitrage Total Return Index. SPAK, another ETF that trades on the NYSE, has returned about 17% since its launch in October.
Matt Waddell, a New York-based analyst at United First Partners, says that quality of companies may be further scrutinized going forward. He believes that SPAC listings could slow to a couple a week, from dozens per day, in 2021.
But for now – just another day, just another SPAC.
Thu, 02/18/2021 – 05:45