Recently Completed SPAC Deals Tripped up by De-Listing Threats (TMI, WLBC, CNWHF)

SPACupdate.com provides daily reports and e-mails covering blank checks, their targets and relevant trading data.  The team has provided 24/7 Wall Street with many examples of solid developments in special purpose acquisition companies, but today we have examples of how not all deals will be positive in the sector.  Two blank checks that recently completed deals have been threatened with de-listing by the AMEX.  SPACs’ buoyancy after deal completions—and even value gains after favorable merger votes are tallied—have created arbitrage opportunities for unit holders who can split shares from warrants and sell each off at a markup in excess of 25% of a unit’s redemption value.

China MediaExpress (AMEX: TMI) announced that it had been threatened with de-listing, but Ted Green’s SPAC hastily proved to the exchange that it has sufficient shareholders to maintain its status and the company was granted a reprieve. The exchange rescinded its de-listing notice, the company announced Friday.

Western Liberty Bancorp (AMEX: WLBC) was not so fortunate; the company brought public through Global Consumer Acquisition Co. was given a de-listing notice on Oct. 20 by the exchange and its appeal has yet to be determined; the company has already applied to have its shares shifted to the NASDAQ. Western Liberty shares fell by more than nine percent in Friday trading.

Other SPACs have fallen off exchanges, each one for failing to maintain sufficient shareholder headcounts. China Networks (OTC:CNWHF), which traded as high as $8.80, was removed from markets and to Pink Sheets for failing this summer to have enough shareholders; its shares now trade for around $1.25. That company was brought public through Alyst Acquisition Co.; China Networks continues to work with exchange officials to return to AMEX.

And HUGHES Telematics, the company brought public through Polaris Acquisition Co., lasted just days on the AMEX before being elbowed off; after a depreciation of share value, its previous owners sought to buy the company back and offered holders of about 20 million warrants an exchange for 1 million shares of the company returning to private ownership—not exactly what once-thrilled investors in the SPAC deal has anticipated.

For more on these mergers and other deal votes, please visit www.SPACupdate.com.