SPAC Dealsheet Changes Continue (CLA, NAQ, IDI, TMI)

SPACupdate.com provides daily reports and e-mails covering blank checks, their targets and relevant trading data. Monday and Tuesday, a pair of mergers will go to shareholders for a vote.

Capitol Acquisition Co. (AMEX: CLA) broke the news late last week that it has pushed even closer to its deal with $32 million in buybacks and sources say the blank check is going to join the recent string of blank checks that have cashed in on improving investor optimism. Capitol’s REIT deal with Pine River Capital Management’s Two Harbors Investment Corp. position it to take advantage of distressed residential mortgage-backed securities. That the SPAC’s warrants have only traded last week in the $0.65 range is surprising, given that NRDC Acquisition Co. (AMEX: NAQ) successfully converted itself into a REIT last week with overwhelming shareholder approval. Capitol Acquisition shares broke through their trust value briefly, before gravitating back to $9.86. On Oct. 26, Capitol will have its merger vote.

Ideation Acquisition Co. (AMEX: IDI) is in a similar position—only better. The SPAC’s warrants are trading in the $3 range, sources have been acknowledging its merger’s likely success for weeks and Ladenburg Thalmann recently bestowed a “BUY” rating on the blank check, giving its shares a boost past the $9 range. At $8.80, the SPAC’s shares are still trading at more than $1 over their redemption value, signaling not only the deal’s completion is guaranteed, but that the blank check has, similar to TM Entertainment & Media (AMEX: TMI) picked a winning target in the Chinese advertising market. Ideation’s vote to bring SearchMedia public will come Oct. 27.

After this, we still have two more deal votes remaining this week. Given the recent run SPACs have gone on, provided markets can protect existing gains, it stands to reason that many of the remaining blank checks with targets identified will succeed. Still more SPACs, numbering about a dozen, have potential warrant bargains available and other blank checks that completed deals, went public prior to the recession and are now experiencing value rebounds offer similar potential.

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