The week may be winding down, but it seems like SPAC merger news continues to heat up.
In fact, this week brought major moves in more than nine special purpose acquisition companies. For investors less familiar with this world, SPACs are public companies that merge with private companies. Essentially, SPACs help private businesses avoid the IPO process. Importantly, following the pandemic selloff in March, investors have had a huge appetite for new offerings. That means SPAC merger news has dominated the market.
This week was no different. Dive into the latest news with InvestorPlace below:
No. 1: Lion Electric SPAC Merger News
SPAC: Northern Genesis Acquisition (NYSE:NGA)
Private Company: Lion Electric
Earlier this week, Northern Genesis Acquisition shares were climbing higher on some exciting news. The company submitted a filing with the U.S. Securities and Exchange Commission confirming the deal would close sometime in the first quarter of 2021.
Importantly, Lion Electric is an electric vehicle company specializing in all-electric buses and other commercial vehicles. Once the deal closes, it will trade as LEV.
No. 2: Achronix SPAC Merger News
SPAC: ACE Convergence Acquisition (NASDAQ:ACEV)
Private Company: Achronix Semiconductor
ACEV stock was on the move earlier this week thanks to a report in Bloomberg. Some believe that Achronix Semiconductor, which calls California its home, is looking to come public via ACE Convergence. Interested investors could receive confirmation of this deal sometime in January 2021.
Importantly, Achronix Semiconductor has a variety of customers, including in the defense world. It also produces semiconductors for artificial intelligence and machine learning purposes.
No. 3: SoFi SPAC Merger News
SPAC: Social Capital Hedosophia Holdings V (NYSE:IPOE)
Private Company: SoFi
Chamath Palihapitiya made waves when he announced the fifth Social Capital Hedosophia SPAC would take SoFi public. His announcement sent IPOE stock soaring, and sparked a wave of interest in his fourth and six blank-check companies.
The appeal here is that Palihapitiya is considered a leader of the SPAC movement. His earlier deals include Opendoor (NASDAQ:OPEN), Virgin Galactic (NYSE:SPCE) and Clover Health (NASDAQ:CLOV). Additionally, SoFi represents a compelling investment in fintech.
No. 4: Social Capital Hedosophia SPAC Merger News
Following news that Social Capital Hedosophia V will take SoFi public, IPOD and IPOF stock shot higher. Although Chamath Palihapitiya has not identified acquisition targets for his fourth and sixth Social Capital Hedosophia SPACs, investors are hopeful announcements are coming soon.
Why? Palihapitiya announced the Opendoor and Clover Health deals in quick succession. Plus, as Palihapitiya once again reminds investors of his SPAC process, there is an interest in getting into the next deals early. Importantly, the IPOE stock news has also created broader ripples in the SPAC space.
No. 5: Tastemaker SPAC Merger News
SPAC: Tastemaker Acquisition (NASDAQ:TMKRU)
Private Company: Unidentified
Unlike the news from Palihapitiya, the Tastemaker Acquisition SPAC represents a different sort of industry. In fact, the newly public blank-check company wants to focus on the restaurant and hospitality space. Although Covid-19 has hurt the industry, Tastemaker is betting on a huge recovery.
What does this mean for investors? Tastemaker says it wants to acknowledge the technological advancements in the restaurant business. If you are betting on things like robots and plant-based food, the TMKRU SPAC is worth a closer look.
No. 6: LM Funding America SPAC Merger News
SPAC: LMA Acquisitions (NASDAQ:LMAO)
Private Company: Unidentified
Did you get the hint that fintech is popular right now? LM Funding America (NASDAQ:LMFA), a company that specializes in funding for community associations, is launching its own SPAC. Importantly, that SPAC is LMA Acquisitions. And LMA Acquisitions says it wants to bring a fintech or financial services company to the public markets.
Right now, LMAO stock has not started trading yet. That means the SPAC news sent LMFA stock, representing the parent company, up nearly 200%. For investors, this early enthusiasm means that LMAO stock should certainly be on your radar once it debuts.
No. 7: Clover Health SPAC Merger News
Clover Health delivered a different sort of SPAC merger news this week. In fact, CLOV stock started trading on the Nasdaq Exchange! This comes after it closed its reverse merger with the third blank-check company from Social Capital Hedosophia.
So what should investors know? Well, Clover Health is a Medicare Advantage insurance company. It also represents an investment in healthcare technology that assists in decision-making.
No. 8: Pershing Square SPAC Merger News
SPAC: Pershing Square Tontine Holdings (NYSE:PSTH)
Private Company: Unidentified
Pershing Square Tontine Holdings staged a simply impressive move on Friday. The Bill Ackman SPAC shot up on hope for a deal — not even new speculation. Essentially, following the SoFi SPAC merger news, many PSTH stock bulls were betting an Ackman announcement would soon follow. Specifically, many are hoping that Ackman will identify a merger target over the weekend or on Monday.
So what else do you need to know about PSTH stock? Perhaps the most interesting part of this story is how broad the speculation is. Investors have considered SpaceX, Starlink, Stripe, Bloomberg and Chick-fil-A as all potential targets. All we do know for sure is that Ackman wants to bring a mature unicorn to the public markets.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.
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