Image Source: Kevin Smith on Flickr

In SPAC news this week, Amicus Therapeutics announced its intent to sell its gene therapy unit to ARYA Sciences Acquisition Corp IV, a SPAC sponsored by Perceptive Advisors.

Spinoff Deal

Amicus Therapeutics (FOLD) announced its intent to launch a next-generation genetic medicine company, Caritas Therapeutics, through a definitive business combination agreement pursuant to which the Amicus gene therapy business will be acquired by ARYA Sciences Acquisition Corp IV (ARYD), a special purpose acquisition company or SPAC, sponsored by Perceptive Advisors.

The transaction will result in two independent publicly traded companies. Amicus will become the largest shareholder in Caritas with a 36% ownership stake and retain co-development and commercialization rights to the Fabry and Pompe gene therapy programs, as well as negotiation rights on select future muscular dystrophy programs.

Upon completion of the combination, current Amicus Chairman and Chief Executive Officer John Crowley will lead Caritas as Chairman and CEO and will become the Chairman Emeritus and Chief Strategic Advisor for Amicus. Current Amicus President and Chief Operating Officer Bradley Campbell will be named as CEO of Amicus.

Amicus expects to incur charges related to the transaction during the reporting periods preceding the separation and does not otherwise expect this to impact Amicus' financial guidance for 2021, it said. In connection with the closing of the transaction, in addition to its renaming, ARYA IV will redomicile as a Delaware corporation and its common stock is expected to be listed on the Nasdaq under the ticker symbol "SPES."

Completion of the transaction, which is expected in the fourth quarter of 2021 or early 2022, is subject to approval of ARYA IV's shareholders, delivery of the minimum $300 million in cash proceeds, and the satisfaction or waiver of certain other customary closing conditions.

SAITECH, TradeUP Global Merger 

SAITECH Limited, a Eurasia-based Bitcoin mining operator that engages in the hosting of Bitcoin mining machines for its clients, and TradeUP Global Corporation (TUGC) announced that they have entered into a definitive business combination agreement that will result in SAITECH becoming a publicly listed company on the Nasdaq under the new ticker symbol "SAI."

The transaction values the company, which generated revenue of approximately $8 million in the first half of 2021, at a pro forma equity value of $228 million. The transaction is expected to close in the first quarter of 2022.

Closing of Merger

LumiraDx Limited (LMDX), a next-generation point of care diagnostic testing company, and CA Healthcare Acquisition Corp. (CAHC) announced the completion of their previously announced merger after CAHC stockholders approved the merger during a special meeting. LumiraDx security holders also voted to approve all of the proposals required to be passed in connection with the merger.

Trading began on the Nasdaq on Sept. 29 under the ticker symbol "LMDX" for the common shares and "LMDXW" for the warrants assumed by LumiraDx from CAHC.

Meanwhile, Kensington Capital Acquisition Corp. II (KCAC) and Wall Box Chargers, a leader in electric vehicle charging and energy management solutions, announced the completion of its business combination. The business combination was approved by Kensington stockholders on Sept. 30, 2021, by a quorum of 76.5% of the outstanding shareholders and received approval from 94.9% of those votes cast.

Beginning on Oct. 4, 2021, the Class A ordinary shares of Wallbox N.V., a newly formed holding company, will trade on the NYSE under the ticker symbol "WBX" and its warrants will trade on the NYSE under the ticker symbol "WBX.WS."

Analyst Coverage Initiations

On Friday, New Street analyst Pierre Ferragu initiated coverage of Altimeter Growth (AGC) - which has announced a definitive business combination agreement with Southeast Asia's Grab - with a Buy rating and $13 price target. The combined company expects its securities will be traded on the Nasdaq under the symbol "GRAB" in the coming months.

While he has had a more cautious view on food delivery, his view on ride-sharing is "no secret," said Ferragu, who likes competitive dynamics leading to duopoly market structures, local market leaders, and long-duration growth driven by increasing penetration and individual usage growth over time.

Grab "ticks all the boxes of what we like... and actually goes beyond that, with a 'super-app' opportunity," as the company already leads the e-wallet market in Southeast Asia and has the opportunity to expand in multiple directions, Ferragu tells investors.

Ladenburg analyst Jeffrey Cohen initiated coverage of Big Cypress Acquisition (BCYP), which has agreed to merge with SAb Biotherapeutics, with a Buy rating and $16.50 price target. SAb has not provided the ticker symbol that will be utilized, but is expected to begin trading on the Nasdaq subsequent to closing, which he sees occurring during Q4.

SAb's DiversitAb platform employs cattle genetically engineered to encompass an entire human chromosome vector so that SAb is able to generate fully human antibodies, noted Cohen, who believes that SAb Biotherapeutics "should be valued in comparison with other innovative healthcare and biotechnology companies."

SPAC IPOs This Week

• dMY Technology Group VI (DMYS) opened on Oct. 1 at $10.15. The company intends to focus its search for an initial business combination on companies within the mobile app ecosystem and consumer internet companies with enterprise valuations in the range of $1 billion to $3 billion, though the company's search may span many consumer software segments worldwide.
• Marblegate Acquisition (GATE) opened on Oct. 1 at $9.91. The company intends to concentrate its efforts on identifying "high quality businesses that have recently undergone a restructuring."
• Monterey Bio Acquisition (MTRY) opened on Oct. 1 at $10.07. The company intends to focus its efforts on identifying a biotech company "that has demonstrated success and is primed to thrive in the rapidly evolving biotech industry for its initial business combination."
• Artemis Strategic Investment (ARTE) opened on Sept. 30 at $10. The company is focused on identifying a business combination target within the within the gaming, hospitality, and entertainment industries.
• Home Plate Acquisition (HPLT) opened on Sept. 30 at $9.85. The company intends to focus its efforts on "identifying high growth, U.S., and international acquisition targets in the fintech and embedded finance sectors."
• MELI Kaszek Pioneer Corp (MEKA) opened on Sept. 29 at $10.66. The company is sponsored by Mercado Libre (MELI) and Kaszek, and intends to focus its search for an initial business combination on technology-enabled companies operating in Latin America across a number of sectors, including, but not limited to, commerce, financial services, logistics, healthcare, education, enterprise software, and entertainment.
• Hennessy Capital Investment VI (HCVI) opened on Sept. 29 at $9.85. The company intends to focus its search on target businesses in the industrial technology sector.