In SPAC news this week, Benessere Capital Acquisition and eCombustible Energy announced that the companies have entered into a definitive business combination agreement.

Benessere Capital Acquisition, eCombustible Merger 

Benessere Capital Acquisition (BENE) and eCombustible Energy announced that the companies have entered into a definitive business combination agreement, providing for a business combination that will result in eCombustible Energy becoming a public listed company, subject to regulatory and stockholder approval and other customary closing conditions.

Upon completion of the proposed transaction, the combined company is expected to operate under the name eCombustible Energy Corp. and list on Nasdaq Capital Market under the ticker symbol 'ECEC.' Under the terms of the proposed transaction, a newly formed successor to Benessere will issue shares of its common stock with an aggregate value of $805 million, which is subject to adjustment, to current security holders of eCombustible Energy upon the closing of the proposed transaction.

These eCombustible Energy security holders may also receive, subject to the terms of the business combination agreement, up to an additional 59 million shares of Benessere common stock based on the daily volume weighted average share price of the combined company's common stock in any 20 trading days within a 30 trading day period beginning on the closing of the transaction and ending on the 30-month anniversary of the closing, as follows: 29.5 million shares if the share price exceeds $12.50 prior to such 30-month anniversary and an additional 29.5 million shares if the share price exceeds $15.00 prior to such 30-month anniversary.

The transaction is subject to approval by stakeholders of Benessere and eCombustible Energy and other customary closing conditions, including applicable regulatory approvals.

Griid Talks

Bitcoin (BITCOMP) miner Griid Infrastructure is in talks to go public through a merger with a special purpose acquisition company, Bloomberg's Gillian Tan reported, citing people familiar with the matter. A transaction with the blank-check firm, Adit EdTech Acquisition Corp. (ADEX), would value the combined entity at more than $3 billion, one of the people said.

Analyst Coverage Initiations

On Nov. 22, Benchmark analyst Josh Sullivan initiated coverage of NextGen Acquisition Corp. II (NGCA) - which is in the process of merging with Virgin Orbit - with a Buy rating and $16 price target. After deal completion, the combined company will retain the Virgin Orbit name and is expected to be listed on Nasdaq under the ticker symbol 'VORB,' the companies have stated.

Virgin Orbit operates a mobile space launch system and space data-analytics platform whose key differentiator is an extreme level of launch flexibility in timing and geographic location, all at lower cost, Sullivan tells investors. Virgin Orbit plans to use its low-cost launch basis to build a space services platform that he believes will be a consolidator and scale effectively, Sullivan added.

On Nov. 23, Capital One analyst Richard Tullis initiated coverage of Spartan Acquisition Corp. III (SPAQ) - which has announced a business combination with Allego - with an Overweight rating and $17 price target. Allego is a European chargepoint owner and operator with over 21,000 public charging ports.

His valuation and estimates are based on the combined company, to be listed on the NYSE under the ticker 'ALLG,' Tullis noted. He expects EBITDA margins will build to 30% by 2025 as utilization increases, Tullis added.

SPAC IPOs This Week

• Bear Energy Transition Acquisition opened on Nov. 24 at $10.09. The company intends to target "high growth businesses focused on enhancing electric power grid reliability and resiliency through the energy transition infrastructure buildout."
• Mana Capital Acquisition (MAAQ) opened on Nov. 23 at $10.18. The company intends to focus its search on target businesses operating in North America, Europe, and Asia in the healthcare, technology, green economy, and consumer products sectors.
• Vahanna Tech Edge Acquisition I (VHNA) opened on Nov. 23 at $10.08. The company intends to focus its search on companies with" a strong connection to India and catering to a large addressable market opportunities in India or other developed geographies such as the Americas and Europe."
• Legato Merger Corp. II (LGTO) opened on Nov. 22 at $10.08. The company intends to initially focus on target businesses in the infrastructure, engineering and construction, industrial, and renewables industries.
• 8i Acquisition 2 (LAXX) opened on Nov. 22 at $10.15.