Editor’s Note: This article was updated on Jan. 25, 2021, to correct the current ticker for Queen’s Gambit.
The week may be winding down, but it seems like SPAC merger news continues to heat up.
In fact, this week brought major moves in more than ten special purpose acquisition companies. For investors less familiar with this world, SPACs are public companies that merge with private companies. Essentially, SPACs help private businesses avoid the IPO process. Importantly, following the pandemic selloff in March, investors have had a huge appetite for new offerings. That means SPAC mergers have dominated the market.
This week was no different. Dive into the latest news with InvestorPlace below:
No. 1: Virgin Orbit SPAC Merger News
SPAC: VG Acquisition (NASDAQ:VGAC)
Private Company: Virgin Orbit
Sir Richard Branson is taking the blank-check company craze to space… or at least investors hope he is. His VG Acquisition has been in the spotlight lately thanks to a newfound interest in space exploration. Essentially, many hope that he will use VGAC stock to bring a space company public. And to be fair, such a move would make sense. Branson is behind space pure play Virgin Galactic (NYSE:SPCE) and other private companies like Virgin Orbit and Virgin Hyperloop.
So what should investors know? For right now, there is no set merger target for VGAC. However, Branson did say earlier this week that he was considering the SPAC route for Virgin Orbit. If more news materializes, make sure VGAC stock is on your radar.
No. 2: AppHarvest SPAC Merger News
SPAC: Novus Capital (NASDAQ:NOVS)
Private Company: AppHarvest
For many investors, AppHarvest may stand out of the SPAC crowd. That is because instead of focusing on a high-tech trend, AppHarvest wants to rethink agriculture. Essentially, the company specializes on indoor farming solutions for tomatoes and other produce.
So what had NOVS stock soaring ahead of the AppHarvest SPAC merger? Well, earlier this week, the company announced that it had hit a new milestone. Importantly, it completed its first harvest of Beefsteak tomatoes and was preparing to deliver them to stores across the country. Even more importantly is the fact that Walmart (NYSE:WMT) and Kroger (NYSE:KR) were some of those recipient stores.
No. 3: Queen’s Gambit SPAC Merger News
You will notice that this is also some different SPAC news. Queen’s Gambit is a new special purpose acquisition company that just filed to come public. What makes it stand out is its leadership team. Unlike many blank-check companies before it, all women lead the GMBT staff.
We do not know much about the SPAC at this point, except that it will likely please those who prioritize environmental, social and governance investing. However, we do know that GMBT wants to focus on sustainable development and growth. Wait for the IPO, and then keep GMBT stock on your radar.
No. 4: Payoneer SPAC Merger News
SPAC: Ftac Olympus Acquisition (NASDAQ:FTOC)
Private Company: Payoneer
Want some speculative SPAC merger news? Look no further than Payoneer and Ftac Olympus Acquisition. According to the rumors, Ftac is in talks to take Payoneer public, leading to a rally in FTOC shares earlier this week.
So what should you know about Payoneer? Right now, there is no merger combination. However, such a deal would be quite exciting because Payoneer is a fintech play. More specifically, it provides payment processing solutions.
No. 5: REE Auto SPAC Merger News
SPAC: Burgundy Technology Acquisition (NASDAQ:BTAQ)
Private Company: Unknown
Let me start by adding some clarification. Right now, we really do not know the acquisition target of Burgundy Technology. However, social media users are pretty sure they have narrowed down the list. That is because there are two facts about BTAQ stock that make it stand out. The first is that the company wants to bring a tech play public. The second is that it wants to focus on an Israeli firm. Putting two and two together, REE Auto and eToro are the top guesses.
Earlier this week, investors were hoping for confirmation of a REE Auto SPAC merger. That is because many see REE Auto as a competitor to Canoo (NASDAQ:GOEV), a popular EV startup. REE Auto would offer another opportunity to cash in on that craze.
No. 6: Hims & Hers SPAC Merger News
This week marked the ending of a SPAC era and the start of life in the public markets for one company. That firm? Telehealth play Hims & Hers. HIMS stock started trading this week on the New York Stock Exchange, ushering in hope for its potential to one dominate Teladoc (NYSE:TDOC).
So what should investors know? Hims & Hers is an interesting company that occupies a unique place in the telehealth market. It caters to men, women and children, and it also offers specialized services like behavioral psychology and dermatology. Although it will have to grow to truly rival Teladoc in terms of telehealth consultations per year, a lot of hope is on the line. Especially with Covid-19 catalysts, HIMS stock is one to watch.
No. 7: Joby Aviation SPAC Merger News
Private Company: Joby Aviation
Move over Blade Urban Air Mobility, another disruptive transportation company is looking to come public via a special purpose acquisition company. According to a Reuters report, Joby Aviation has hired investment banks to solicit offers from SPACs.
But what exactly is Joby Aviation all about? The company plans to offer ride-hailing services… except it wants to offer those services via all-electric flying taxis. One other thing to watch is that Joby recently acquired the flying taxi assets from Uber (NYSE:UBER). Joby is eyeing a launch date in 2023, but the company is one to start watching now.
No. 8: Lucid Motors SPAC Merger News
SPAC: Churchill Capital IV (NYSE:CCIV)
Private Company: Lucid Motors
Lucid Motors SPAC merger hopes have investors on edge this week. The latest news comes from the Los Angeles Times, which reported this morning that a deal is on the way. However, Michael Klein and his Churchill Capital IV have not said a word about the merger. In fact, Klein said earlier this week that his blank-check company was considering a variety of acquisition targets.
So what else do investors need to know? There is a lot of risk and a lot of speculation here. However, if a deal comes through, there is also a lot of potential. That is because many people see Lucid Motors as a true rival to Tesla (NASDAQ:TSLA) in the luxury space.
No. 9: EVgo SPAC Merger News
SPAC: Climate Change Crisis Real Impact I Acquisition Corporation (NYSE:CLII)
Private Company: EVgo
Luckily for investors, Wall Street got a little bit of SPAC confirmation in the electric vehicle space. In fact, we learned this morning that EVgo will be coming public.
What stands out about this news? EVgo is actually the largest electric vehicle charging company in the United States, with more than 800 locations. This means that it gives investors an outsized opportunity to cash in on a trend — and it makes CLII stock look rather interesting here. Keep this one on your radar, too.
No. 9: Liberty Media SPAC Merger News
SPAC: Liberty Media Acquisition Corporation (NASDAQ:LMACU)
Private Company: Unknown
Last but not least on the list of SPAC merger news this week is Liberty Media Acquisition. Launched by billionaire John Malone, the new blank-check company plans to bring a media or entertainment business to the public markets. And importantly, LMACU stock just started trading.
But why do Malone and his Liberty Media make LMACU stock so appealing? Well, Malone commands quite an empire. His business is split up into three parts: Liberty Media Formula One (NASDAQ:FWONA, NASDAQ:FWONK), Liberty Sirius XM (NASDAQ:LSXMA, NASDAQ:LSXMK), and Liberty Braves (NASDAQ:BATRA, NASDAQ:BATRK).
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer for InvestorPlace.com.