Latest news with #SPAC
Yahoo
3 minutes ago
- Business
- Yahoo
A-Rod SPAC Strikes Out, Canceling Long-Pending Merger With Lynk
Slam Corp., the SPAC formed by Alex Rodriguez that raised more than $500 million at its IPO during the height of the sports SPAC craze, told investors Thursday evening that it has called off its long-delayed merger with satellite phone service provider Lynk Global. 'Termination was on mutually acceptable terms and was completed as part of the full dismissal and settlement of related litigation in the Delaware Court of Chancery, which was commenced on June 19, 2025,' the company said in a regulatory filing. 'The settlement agreement provides that Lynk will make a deferred payment to Slam within the next two years that is significantly less than Slam's current liabilities.' More from A-Rod Again Confronts 'Seller's Remorse' in Slam SPAC Spat Kevin Durant, Livvy Dunne Invest in PE-Backed Spindrift DraftKings the Exception to Sports SPACs' Dire Track Record Slam has about $612 million in liabilities on its balance sheet, almost all of which probably accounts for warrants issued as part of its IPO and continued efforts to retain investors. The company has $1.15 million in other, more common, liabilities, including accrued expenses, long-term debt and accounts payable, according to data compiled by S&P Global Market Intelligence. The baseball great and new owner of the Minnesota Timberwolves formed Slam in 2021 to pursue the acquisition of a sports, media, entertainment or health and wellness-related business. At the time of its IPO, Slam was part of a wave of blank-check businesses associated with sports figures and seeking sports properties, sparked by the success of DraftKings' merger with a SPAC. The market soon fell headlong in a prolonged slump after most of the business combinations secured by SPACs turned out to be terrible deals for shareholders. A-Rod's pivot to merge with Lynk, which is still in development stage, was a relative success when announced in late 2023. However, the two parties ran into trouble; Slam accused Lynk of slow-walking the merger in an attempt to force the deal to fail. Last month Slam filed a lawsuit against Lynk in Delaware for that reason, but Lynk disagreed. The merger dissolution includes dropping of all legal claims. The outlook for Slam itself is uncertain. SPAC shareholders have the option at certain points to redeem their shares for cash, and many Slam investors have done so over time. Right now Slam has about 15.5 million shares, according to a June filing. They are worth about $179 million, far less than the $575 million in publicly traded shares Slam had shortly after its IPO. Best of Most Expensive Sports Memorabilia and Collectibles in History The 100 Most Valuable Sports Teams in the World NFL Private Equity Ownership Rules: PE Can Now Own Stakes in Teams
Yahoo
18 hours ago
- Business
- Yahoo
Opendoor has become the first true woman-led meme stock—and that can get complicated
– Open up. Another day, another meme stock. Or is it? In the four years since GameStop went viral, it's been pretty rare for one of the stocks that Reddit's r/WallStreetBets has pushed to artificial highs to be a woman-led company. But alongside AMC, Nokia, and Trump Media & Technology Group, we can now count Opendoor, the real estate businesses headed by CEO Carrie Wheeler. Opendoor was a Fortune 500 member in 2022 and 2023 (and Wheeler was a Fortune 500 CEO), but the company has since fallen off the list of America's largest businesses. An online home buyer and flipper, its fortunes have reversed post-pandemic and after a 2020 SPAC. It came close to being delisted from the Nasdaq earlier this year. Over the past week, Opendoor's shares were up more than 400%—which still places its stock price at just $2.88 as of yesterday's market close. (Kohl's is another new meme stock of the past week, too.) Investor Eric Jackson is bullish on Opendoor, as are retail traders who see something Wall Street doesn't. But of course the attention of Reddit traders can get complicated. Investor Keith Rabois, who was a force behind the launch of the company a decade ago, has been openly questioning Wheeler's competence and calling for a new CEO—and others are following along. It's not easy to be a meme, and it's not easy to be a female CEO. Emma The Most Powerful Women Daily newsletter is Fortune's daily briefing for and about the women leading the business world. Subscribe here. This story was originally featured on
Yahoo
2 days ago
- Business
- Yahoo
A troubled SPAC plans to buy iRocket for $400M but it already returned most of its cash
An unproven small launch startup is partnering with a severely depleted SPAC trust to do the impossible: go public in a deal they say will be valued at $400 million. Innovative Rocket Technologies Inc. (iRocket) and BPGC Acquisition Corp., a special purpose vehicle company founded by former Commerce Secretary Wilbur Ross, is aiming to close the transaction in the fourth quarter of this year. Interestingly, the SPAC has been depleted of most of its cash after it raised $345 million in its IPO in March 2021. According to a September 2024 filing with the U.S. Securities and Exchange Commission, the SPAC had returned much of its money to shareholders when it failed to find an acquisition target by September 2024 and held $30.5 million in trust. However, just 16 days later, the company reported in an 8-K that another $28.8 million had been redeemed — leaving the trust as of that date with just 0.5% of its original amount, or $1.6 million. The remaining shareholders (primarily the SPAC's sponsors) agreed at that time to extend the date to find an acquisition target to March 2026. The startup, iRocket, was at one time buzzy because it was backed by venture capital firm Village Global, which counts billionaires like Bill Gates, Eric Schmidt, and Reid Hoffman among its limited partners. Even still, iRocket is a surprising target for a take-public deal. The company has raised only a few million in venture funding, according to PitchBook, in an industry that is known for being extremely capital intensive. Since its founding in 2018, it has yet to conduct a single test flight of its Shockwave launch vehicle. In that time, it has been overtaken by other firms, like Stoke Space and Firefly, that are better capitalized and farther along in their hardware development. The market has changed, too: As of 2023, iRocket described Shockwave as being able to carry 300 kg to 1,500 kg payloads, and that space has become crowded with vehicles like Firefly's Alpha and Rocket Lab's Electron, both of which have flown customer payloads. If iRocket can prove out the rest of its value proposition — full reusability, rapid refurbishment, and 24-hour responsiveness — it could prove very competitive, but that's a tough series of goals. The New York-based startup lists just four employees, excluding board members, on LinkedIn. Its contracts include an $18 million deal with the Air Force Research Lab and a $1.8 million contract with the Space Force. A PR firm representing iRocket and the SPAC declined to respond to TechCrunch's questions. The special purpose acquisition vehicle has a checkered past. Operating under the name Ross Acquisition Corp II, it tried to take public biopharma company Aprinoia Therapeutics in January 2023 but terminated the deal eight months later. After failing to consummate a transaction, the NYSE subsequently commenced delisting proceedings against the SPAC last March. RAC II changed its name to BPGC Acquisition Corp. and now has until March 2026 to close a deal. But given the SPAC's current cash reserves, if iRocket's existing shareholders expect to be paid much cash for their equity, the two parties will need to pull in a big chunk of money from private equity investors in a PIPE (private investment in public equity) round. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
2 days ago
- Business
- CNBC
Jim Cramer describes positive and negative forces that are shaping market action
According to CNBC's Jim Cramer, this market is hard to pin down. On Wednesday he described a fraught environment, highlighting both positive and negative themes that are driving the action. "It's mixed. Some good, some bad…When it gets all good, it will be too good. When it gets all bad, it'll be too bad," he said. "Maybe right now it's just right — and we should be skeptical, but not cynical, because there's too much money being made, and I don't want you to leave the table." Cramer mentioned President Donald Trump's trade deal with Japan. Trump announced Tuesday that he would implement 15% tariffs on Japanese imports and said the country would invest $550 billion into the U.S. Cramer noted that the new duty is less extreme than Trump's initial proposal and "something most businesses can live with." However, he suggested that the deal could be inflationary and discourage the Federal Reserve from cutting interest interest rates. Cramer said there are some strong themes that could see long-term success, including the data center. He noted that GE Vernova, an energy company that powers much of the new technology, indicated that demand for data center electrification is strong. Although he said there are some investors who are suspicious of the data center buildout and question whether the hyperscalers need so much computing power. Earnings season has been strong so far, Cramer continued, pointing to success from major banks and healthcare-related companies. Alphabet's quarter sent the stock climbing in extended trading on Wednesday, Cramer noted. While not all outfits are beating the estimates, he said the good outweighs the bad. However, he said there is "froth that feels like the market before the Great Recession hit in 2008, or the dot com period in 1999, or the SPAC and GameStop mania of 2021." He said there are some investors, including hedge funds, that are "up to speculative things that make my stomach, well, let's say, churn." He named recent buying action in legacy department store chain Kohl's, which has 50% short interest. He said the stock is not a safe short, as it's too cheap, and the company could still be acquired by a big buyer. "But away from Kohl's, we see things happening that if we had a tough SEC, well, we would be against. Many one and two and three dollar stocks are getting bagged, being gunned and, for all I know, being liquidated…for a quick win," he said. "I don't want to dignify them with a mention…but I would say that many of these should be investigated. It just doesn't seem right." Click here to download Jim Cramer's Guide to Investing at no cost to help you build long-term wealth and invest The CNBC Investing Club Charitable Trust owns shares of GE Vernova and Alphabet.
TechCrunch
2 days ago
- Business
- TechCrunch
A troubled SPAC plans to buy iRocket for $400M but it already returned most of its cash
An unproven small launch startup is partnering with a severely depleted SPAC trust to do the impossible: go public in a deal they say will be valued at $400 million. Innovative Rocket Technologies Inc. (iRocket) and BPGC Acquisition Corp., a special purpose vehicle company founded by former Commerce Secretary Wilbur Ross, is aiming to close the transaction in the fourth quarter of this year. Interestingly, the SPAC has been depleted of most of its cash after it raised $345 million in its IPO in March 2021. According to a September 2024 filing with the U.S. Securities and Exchange Commission, the SPAC had returned much of its money to shareholders when it failed to find an acquisition target by September, 2024, and held $30.5 million in trust. However, just sixteen days later, the company reported in an 8-K that another $28.8 million had been redeemed – leaving the trust as of that date with just 0.5% of its original amount, or $1.6 million. The remaining shareholders (primarily the SPAC's sponsors) agreed at that time to extend the date to find an acquisition target to March, 2026. The startup, iRocket, was at one time buzzy because it was backed by venture capital firm Village Global which counts billionaires like Bill Gates, Eric Schmidt, and Reid Hoffman among its limited partners. Even still, iRocket is a surprising target for a take-public deal. The company has raised only a few million in venture funding, according to Pitchbook, in an industry that is known for being extremely capital intensive. Since its founding in 2018, it has yet to conduct a single test flight of its Shockwave launch vehicle. In that time, it has been overtaken by other firms, like Stoke Space and Firefly, that are better capitalized and farther along in their hardware development. The market has changed, too: as of 2023, iRocket described Shockwave as being able to carry 300-1,500 kilogram payloads, and that space has become crowded with vehicles like Firefly's Alpha and Rocket Lab's Electron, both of which have flown customer payloads. If iRocket can prove out the rest of its value proposition – full reusability, rapid refurbishment, and 24-hour responsiveness – it could prove very competitive, but that's a tough series of goals. Techcrunch event Tech and VC heavyweights join the Disrupt 2025 agenda Netflix, ElevenLabs, Wayve, Sequoia Capital — just a few of the heavy hitters joining the Disrupt 2025 agenda. They're here to deliver the insights that fuel startup growth and sharpen your edge. Don't miss the 20th anniversary of TechCrunch Disrupt, and a chance to learn from the top voices in tech — grab your ticket now and save up to $675 before prices rise. Tech and VC heavyweights join the Disrupt 2025 agenda Netflix, ElevenLabs, Wayve, Sequoia Capital — just a few of the heavy hitters joining the Disrupt 2025 agenda. They're here to deliver the insights that fuel startup growth and sharpen your edge. Don't miss the 20th anniversary of TechCrunch Disrupt, and a chance to learn from the top voices in tech — grab your ticket now and save up to $675 before prices rise. San Francisco | REGISTER NOW The New York-based startup lists just four employees, excluding board members, on LinkedIn. Its contracts include an $18 million deal with the Air Force Research Lab and a $1.8 million contract with the Space Force. A PR firm representing iRocket and the SPAC declined to respond to TechCrunch's questions. The special purpose acquisition vehicle has a checkered past. Operating under the name Ross Acquisition Corp II, it tried to take public biopharma company Aprinoia Therapeutics in January 2023 but terminated the deal eight months later. After failing to consummate a transaction, the NYSE subsequently commenced delisting proceedings against the SPAC last March. RAC II changed its name to BPGC Acquisition Corp. and now has until March 2026 to close a deal. But given the SPAC's current cash reserves, if iRocket's existing shareholders expect to be paid much cash for their equity, the two parties will need to pull in a big chunk of money from private equity investors in a so-called PIPE round (private investment in public equity).
