In SPAC news this week, silicon battery maker Amprius Technologies is going public via a SPAC merger. Meanwhile, Goldman Sachs is no longer working with SPACs due to concerns around new liability guidelines.

Amprius to Go Public

Amprius Technologies and Kensington Capital Acquisition Corp. IV (KCAC) announced a definitive agreement for a business combination that would result in Amprius becoming a publicly-listed company. Upon closing of the transaction, the combined company will be named Amprius Technologies and its common stock will trade on the NYSE under the new ticker symbol 'AMPX.' 

Founded in 2008, Amprius develops, manufactures, and sells ultra-high energy density lithium-ion batteries using its innovative, patent-protected silicon nanowire anode technology. The business combination values Amprius at an implied pro forma enterprise value of $939 million, assuming no redemptions by the companies' public stockholders in connection with closing and the payment of estimated transaction expenses.

The boards of directors of both Kensington and Amprius have approved the proposed transaction, which is expected to be completed in the second half of 2022, subject to, among other things, the approval by Kensington's stockholders and satisfaction or waiver of other conditions stated in the definitive documentation.

The transaction will result in gross proceeds of approximately $430 million to Amprius, comprised of $230 million of cash held in Kensington's trust, before redemptions, and up to $200 million in additional equity financing to be raised prior to the closing of the business combination.

Liability Risk

Goldman Sachs is no longer working with most of the special purpose acquisition companies it took public due to concerns around new liability guidelines, Bloomberg's Sridhar Natarajan reported.

Goldman, the second-biggest underwriter of SPACs last year, has been telling sponsors of the vehicles it will be ending its involvement, people with knowledge of the matter told Bloomberg. The bank is also electing to pause new U.S. SPAC issuance for now, one of the sources said.

SPAC IPOs This Week

• Prime Number Acquisition I (PNAC) opened on May 13 at $9.97. The company was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination, provided that it will not undertake its initial business combination with any entity being based in or having the majority of the company's operations in China, including Hong Kong and Macau.
• Monterey Capital Acquisition (MCAC) opened on May 11 at $9.98. The company intends to focus its search on businesses in the clean transition sector.
• Global Blockchain Acquisition (GBBK) opened on May 10 at $10.01. The company intends to focus its search on businesses that are focused on blockchain related technology, economy, industries, and solutions.
• Investcorp India Acquisition (IVCA) opened on May 10 at $10.05. The company intends to focus its search for a target located in India in industries the company expects to "have a high-potential for growth and for generating strong returns for its shareholders."