Back in October, we noted seven initial public offerings (IPOs) in the green vehicle pipeline that were combinations between the company and a special-purpose acquisition company (SPAC). All seven came public in transactions known as reverse mergers, where the SPAC is the publicly listed company that is usually just a cash pile and the target is the company that survives the reverse merger.
The last of those seven deals was completed earlier this month, when electric car maker Fisker came public in its reverse merger with Spartan Acquisition.
Here are five more reverse merger IPOs in the pipeline and all are expected to be completed in early 2021.
BarkBox
Northern Star Acquisition Corp. (NYSE: STIC) has announced a merger with BarkBox, a subscription service that sends customers a monthly box of dog toys and treats. The terms of the reverse merger value BarkBox at around $1.6 billion, and the company expects gross proceeds of around $454 million once the merger is completed.
Shares of Northern Star traded at around $16 recently, about 23% higher than the $13 opening price at its IPO earlier this month. Northern Star’s shares touched a post-IPO high of $19.54 last Thursday. Spartan will change its name to BarkBox and trade on the New York Stock Exchange (NYSE) under the ticker symbol BARK. The merger is expected to close early in the second quarter of 2021.
Blue Owl Capital
Altimar Acquisition Corp. (NYSE: ATAC) has agreed to a business combination that involves a merger of two separate companies. Dyal Capital Partners and Owl Rock Capital partners agreed last week to combine to form a new company, Blue Owl Capital, and come public in a reverse merger with Altimar. Blue Owl’s market value is estimated to be around $12.5 billion, and the new company expects gross proceeds from the IPO of about $1.8 billion.
Altimar, which came public on December 14, trades up about 12% from the $10 IPO price. These shares set a post-IPO high of $12.07 last Thursday. Blue Owl will trade on the NYSE under the ticker symbol OWL.
Indie Semiconductor
Thunder Bridge Acquisition II Ltd. (NASDAQ: THBR) has agreed to a reverse merger with Indie Semiconductor, a maker of automotive semiconductors and software for the autonomous vehicle market. Indie’s equity value is estimated at around $1.4 billion, and the company is expected to realize gross proceeds of $495 million.
Thunder Bridge came public in December 2019 at $10 and traded at a post-IPO high of nearly $15 on Monday. The transaction is expected to close in the first quarter of 2021, and Indie Semiconductor will trade on the Nasdaq under the ticker symbol INDI.
WM
Silver Spike Acquisition Corp. (NASDAQ: SSPK) has agreed to merge with WM Holding Co., operator of Weedmaps, a subscription service for cannabis retailers and brands. The deal is expected to raise gross proceeds of up to $575 million and values the combined company at roughly $1.5 billion.
The merger is expected to be completed in the second quarter and the surviving company will be called WM Holding. According to the terms of Silver Spike’s IPO, the company must complete a transaction by February 12, 2021. The company has sent out a proxy statement seeking shareholder approval to extend that deadline until July 10.
According to an SEC filing, “Once the transaction is completed, current holders of [WM Holding] equity will have access to liquidity through SSPK, since it is a company that is publicly traded on the NASDAQ.”
Ouster
Colonnade Acquisition Corp. (NYSE: CLA) has agreed to combine with Ouster, a maker of high-resolution digital lidar sensors for the industrial automation, smart infrastructure, robotics and automotive industries. The combination is expected to result in a company valued at around $1.6 billion and to provide gross proceeds of up to $300 million.
Colonnade came public in October at $10 a share, and the post-IPO high is $17.73, a level it reached last Thursday, two days after the reverse merger with Ouster was announced. The transaction is expected to be completed in the first half of 2021, and the new company will operate as Ouster and trade on the NYSE under the ticker symbol OUST.
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