News & Events - SPACs

  • May 15, 2012

    After four straight years of declines, deal making by so-called Special Purpose Acquisition Companies is showing modest signs of a rebound. Through last Friday, SPACs, investment funds created specifically for buying companies, had announced four acquisitions this year, valued at a total of $168 million, according to Dealogic. That’s more than the two such deals, valued at $66 million, made during the whole last year.

    SPACs remain a long way from their heyday of 2007, when they spent $4.08 billion snapping up companies. But there is reason to believe that SPAC activity will continue to increase. Under the rules that govern most of the funds they need to buy at least one company within two years of being formed. Dealogic says that SPACs raised a total of $1.61 billion in 2010 and 2011 through initial public offerings. Many of them will need to find targets by the end of 2013.

    “We’ll continue to see many more acquisitions by SPACs in the next 12 months,” said Douglas Ellenoff, a partner at the law firm Ellenoff Grossman & Schole LLP, which has served as an adviser on recent SPAC transactions.

    Of this year’s deals, two were by RLJ Acquisition Inc. On April 2, it announced a $114.8 million acquisition of Acorn Media Group Inc. and a $43.8 million deal for Image Entertainment Inc.

  • April 20, 2012

    Special purpose acquisition companies CIS Acquisition Ltd. and Aquasition Corp. filed to raise $100 million and $50 million, respectively, in initial public offerings.

  • April 04, 2012

    Burger King Worldwide Holdings Inc. (BKC) (BKC), the fast-food chain taken private in 2010 by New York investment firm 3G Capital Inc., will go public again after merging with a company owned by billionaire William Ackman.   3G Capital, backed by Brazilian billionaires, will receive $1.4 billion in cash to transfer Burger King to Justice Holdings Ltd. (JUSH), a special-purpose acquisition company co-founded...
     

  • April 04, 2012

    Aquasition Corp., a blank check company focused on acquiring businesses in the maritime transportation and service industries, filed on Wednesday with the SEC to raise up to $50 million in an initial public offering.

  • April 02, 2012

    The combined company, to be named RLJ Entertainment, will be "one of the largest independent distributors of digital and video content globally," the firms said.
     

  • March 22, 2012

    Hibiscus Petroleum Bhd, Malaysia's first special-purpose acquisition company (SPAC), has received its shareholders' nod to acquire a 35 per cent stake in Lime Petroleum plc for US$55 million (US$1 = RM3.10).

  • March 20, 2012

    CIS Acquisition, a blank check company focused on acquiring businesses in Russia and Eastern Europe, filed with the SEC on Tuesday to raise $100 million in an initial public offering.

  • March 16, 2012

    The special purpose acquisition company Andina Acquisition Corp. revised its initial public offering and now plans to raise $40 million, down from its initially planned $50 million.

  • March 01, 2012

    ROI Acquisition, a blank check company backed by consumer-focused private equity firm the Clinton Group, raised $75 million by offering 7.5 million shares at $10.00.

  • February 21, 2012

    Hugh Osmond is poised to launch the successor to his Horizon investment vehicle as early as this month, with an expected fund-raising target in the region of £500m.  Mr Osmond, perhaps best known as one of the people behind the growth of Pizza Express, is understood to be finalising plans for a special purpose acquisition company (SPAC) through which the money will be raised.

  • October 29, 2011

    Hibiscus Petroleum, South-East Asia’s first listed special purpose acquisition company, has announced its first proposed transaction. Its subsidiary, Gulf Hibiscus, has agreed to pay US$50m for 76.9m new shares, equivalent to a 27.2% stake, in Lime Petroleum...

  • October 28, 2011

    Committed Capital Acquisition Corporation (OTCBB: CMTPU) announced today that it has closed its initial public offering of 5,750,000 units at a price of $5.00 per unit for net proceeds of $28.75 million, which includes the full exercise of the underwriter's over-allotment option. Each unit consists of one share of common stock and one warrant to purchase one share of common stock at an exercise price of $5.00 per share. The common stock and warrants...

  • August 27, 2011

    The British Airways (BA) chairman, who earlier this summer was pipped at the post to run the Tote by rival BetFred, is contemplating setting up a special-purpose acquisition company (SPAC) to provide a permanent source of capital to match his future ambitions...

  • July 21, 2011

    Douglas S. Ellenoff and Stuart Neuhauser, members of the Firm, led a SPAC panel moderated by Rothstein Kass on how SPACs are benefiting the private equity industry.
     

    Click here to view the presentation

  • July 19, 2011

    Douglas S. Ellenoff, a member of the Firm, was invited by Deal Flow Media to open their 2011 SPAC Conference with opening remarks on the state of the SPAC market.

    Click here to listen to the audio

  • July 15, 2011

    Nautilus Marine Acquisition Corp. (NASDAQ: NMARU), a newly-organized blank check company formed for the purpose of acquiring or merging with an operating business, today announced the pricing of its initial public offering...
     

  • July 15, 2011

    Blue Wolf Mongolia Holdings Corp. (the "Company") (NASDAQ: MNGL), a newly-organized
    blank check company formed for the purpose of acquiring or merging with an operating
    business, today announced the pricing of its initial public...
     

  • June 30, 2011

    Azteca Acquisition Corporation, a blank check company focused on businesses in Mexico
    and the US led by the Brener family, raised $100 million on Thursday...

  • June 22, 2011

    Stuart Neuhauser, a partner at Ellenoff Grossman & Schole LLP was invited by IPO Vital
    signs to comment on the resurgence of SPACs in the 2011 IPO market.
     

  • June 16, 2011

    Empeiria Acquisition Corp. (the "Company") (OTCBB: EPAQU), a newly-organized blank check company formed for the purpose of acquiring or merging with an operating business, today announced the pricing of its initial public offering of 6,000,000 units at a price of $10.00 per unit for gross proceeds of $60,000,000 on June 15, 2011. Each unit issued...

  • June 08, 2011

    The recession pretty much killed blank check companies and special purpose acquisition companies (or SPACs). After more than two years of an equity market recovery, we have started to see periodic blank check companies file for initial public offerings. The newest filing is from Blue Wolf Mongolia Holdings Corp. It is probably going to stand out from other similar offerings. The company...

  • May 24, 2011

    St. Louis buyout veteran James Mills is asking investors to write him a blank check for $100 million.  Mills is chairman of Empeiria Acquisition Corp., a New York company that has filed for an initial public stock offering even though it has no operations. The idea is that Empeiria's managers will use investors' money to make one or more acquisitions.

  • May 23, 2011

    The success of Crumbs Inc. (CRMB.OB) has given a new spark to the market for special purpose acquisition companies.  Shares of the chain of cupcake bakeries have climbed almost 20% to $11.90, as of late this morning, since its merger with 57th Street General Acquisition Corp. early this month.

  • May 18, 2011

    Global Eagle Acquisition Corp. (Nasdaq: EAGLU), a special purpose acquisition company
    (SPAC) led by media executives Harry Sloan and Jeff Sagansky, today announced the
    closing of its initial public offering in which it raised approximately $190 Million ...

  • May 05, 2011

    57th Street General Acquisition Corp. (“57th Street” or the “Company”) (OTCBB: SQTC) and Crumbs Holdings LLC (“Crumbs”), the largest US-based retailer of cupcakes, which operates under the name Crumbs Bake Shop, jointly announced today that they have closed on their business...