The Week In SPAC News: Suneva Medical, Viveon Health Acquisition To Merge

In SPAC news this week, Suneva Medical and Viveon Health Acquisition Corp. announced that they have entered into a definitive merger agreement.

Suneva, Viveon Health Merger

Suneva Medical and Viveon Health Acquisition Corp. (VHAQ) announced that they have entered into a definitive merger agreement. Upon completion of the transaction, the combined company's securities are expected to be traded on the NYSE under the symbol 'RNEW.'

The pro forma equity valuation of the combined company is expected to be approximately $511 million. VHAQ raised approximately $201 million in connection with its IPO, which is now held in a trust account at Morgan Stanley with Continental Stock Transfer & Trust Company acting as trustee. Under the terms of the proposed transaction, VHAQ will issue 25 million shares to current security holders of Suneva.

Current Suneva security holders may also receive up to 12 million earn out shares -- 4 million shares if the volume weighted average share price over any twenty trading days during a thirty day period exceeds $12.50 before the second year anniversary of the closing; 4 million shares if the volume weighted average share price over any twenty trading days during a thirty day period exceeds $15.00 before the third year anniversary of the closing; and 4 million shares if the volume weighted average share price over any twenty trading days during a thirty day period exceeds $17.50 before the five year anniversary of the closing.

Furthermore, VHAQ's sponsor agreed to shift approximately 1.4 million of its currently held sponsor shares to earn out shares and approximately 5.1 million of its currently held sponsor warrants to earn out warrants, subject to same terms as company Earn Out Shares.

The transaction, which has been approved by the Boards of Directors of Suneva and Viveon Health, is subject to approval by Suneva's stockholders, Viveon Health's stockholders and other customary closing conditions. The proposed business combination is expected to be completed in the first half of 2022.

Wag Labs Said to be In SPAC Talks

Dog-walking startup Wag Labs is in discussions to go public through a combination with CHW Acquisition Corp. (CHWA), a special purpose acquisition company, Bloomberg's Gillian Tan reports, citing people with knowledge of the matter. The SPAC is in talks to raise funds for a PIPE to support the deal with Wag, the author says, noting that the combined entity is slated to have an enterprise valued of roughly $350 million.

SPAC IPOs This Week

  • Atlantic Coastal Acquisition Corp. II (ACAB) opened on Jan. 14 at $10.03. The company has not selected any business combination target and it has not, nor has anyone on its behalf, initiated any substantive discussions, directly or indirectly, with respect to identifying any business combination target.
  • Papaya Growth Opportunity I (PPYA) opened on Jan. 14 at $10.03. The company currently intends to concentrate its search for a target business operating in the software, internet, media, fintech, healthcare IT, or consumer industry sectors and to focus on vertical solutions driven by AI, marketplaces, platforms, and networks.
  • Consilium Acquisition I (CSLM) opened on Jan. 13 at $10.03. The company intends to search for a target business operating in "new economy sectors," broadly defined as technology, financial services, or media, and that are located in frontier growth markets.
  • Andretti Acquisition (WNNR) opened on Jan. 12 at $10.03. The company seeks to "focus on opportunities that can benefit from the iconic Andretti brand name, both inside and outside of the worldwide motor sports platform, and the expertise and ability of its management team to identify, acquire, and grow a business in the broadly-defined automotive industry. This industry includes, but is not limited to, advanced mobility and related next-generation technologies, premium and performance vehicles, and replacement automotive parts."
  • Gores Holdings IX (GHIX) opened on Jan. 12 at $9.96. Gores Holdings IX is a special purpose acquisition company sponsored by an affiliate of The Gores Group.
  • Western Acquisition Ventures (WAVS) opened on Jan. 12 at $10.04. Western Acquisition Ventures Corp. is a blank check company sponsored by Western Acquisition Ventures Sponsor, a Delaware limited liability company.
  • 10X Capital Venture Acquisition III (VCXB) opened on Jan. 12 at $10.07. The company intends to focus on identifying "high growth technology and tech-enabled businesses domestically and abroad in the consumer internet, e-commerce, software, healthcare, transportation/mobility, and financial services industries, as well as other industries which are being disrupted by advances in technology and on technology paradigms including artificial intelligence, automation, data science, e-commerce, and Software-as-a-Service."
  • Industrial Tech Acquisitions II (ITAQ) opened on Jan. 12 at $10.05. The company intends to focus its search on "targets operating in the technology-focused areas including software, mobile and Internet of Things applications, digital and energy transformation, cloud and cyber communications, as well as high bandwidth services, including LTE, remote sensing, and 5G communications."
  • Broad Capital Acquisition (BRAC) opened on Jan. 11 at $10.02. The company intends to focus its search for "a target business addressing a large market opportunity with a company that is driving its growth in the emerging and transformational technologies market, focusing on businesses operating within the general aviation and aerospace industry, and the unmanned aircraft systems in particular."

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