Shares of blank-check company Burgundy Technology Acquisition (NASDAQ:BTAQ) are jumping in pre-market trading on Thursday. BTAQ stock was up as much as 4.5% as Nasdaq futures were poised to lead the broader indices higher.
Followers of the special purpose acquisition company (SPAC) could be focusing on Burgundy’s mention of Israeli firms as potential targets in its search for an investment in technology or enterprise software.
It is enterprise software where Burgundy’s management team has history. Leadership includes Leo Apotheker, the former CEO of Hewlett-Packard Enterprise (NYSE:HPE) and SAP (NYSE:SAP). His co-CEO is Jim Mackey, also ex-SAP and BlackBerry (NYSE:BB).
Potential BTAQ Stock Targets
There is no shortage of potential target acquisitions for Burgundy on the Israeli startup landscape following its August initial public offering that raised $345 million.
Just last month, the shares of blank-check firm ION Acquisition (NYSE:IACA) surged on reports that the firm was in talks to acquire digital advertising firm Taboola. As for Burgundy, possible companies of interest include social trading platform eToro and REE Automotive, which develops modular platforms for electric vehicles.
REE Automotive was reported in late December to be in negotiations for a $3 billion to $4 billion Nasdaq SPAC merger. That was just two months after the startup released a video showcasing three prototypes of its next-generation EV platforms: the P1 for last-mile, inner-city delivery applications; the P2, designed to transport both passengers and cargo; and, the P4, custom designed for the North American market delivery sector.
Poised to Challenge Canoo?
Anyone who has been watching the EV market of late will be familiar with Canoo (NASDAQ:GOEV), the battery-powered delivery truck platform that recently closed its merger with SPAC Hennessey Capital Acquisition Capital IV. GOEV stock now has a $4.09 billion market capitalization.
The similarities to REE Auto make for intriguing speculation for investors. The strength of Burgundy’s team that brought the SPAC IPO to market is also notable.
Notable enough to make a bet on BTAQ stock at this point?
That depends on your risk appetite. No doubt that SPACs are hot and likely to remain that way for the near term. EVs? The future is here. But do your due diligence. I suggest you begin with a look at Matt Levine’s latest Money Stuff newsletter. He’s all over the SPAC action.
On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article.
InvestorPlace contributor Robert Lakin formerly emerging markets editor for Bloomberg News in Tel Aviv. He is a veteran financial writer and editor, following fintech, agtech and property tech startups.