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Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

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<ul><li>At the risk of sounding monotonous, while the SPAC IPO market remains pretty much comatose, there continues to be solid flow of liquidations.</li><li>The number of SPACs electing to liquidate their trust funds has risen to 19 for May and scheduled for June thus far.</li><li>YTD, 107 SPACs have thrown in the towel and elected to liquidate.</li></ul>

At the risk of sounding monotonous, while the SPAC IPO market remains pretty much comatose, there continues to be solid flow of liquidations.The number of SPACs electing to liquidate their trust funds has risen to 19 for May and scheduled for June thus far.YTD, 107 SPACs have thrown in the towel and elected to liquidate.

<ul><li>In the ordinary course of SPAC business. In what has become the norm in SPAC land these days, we can report another flurry of liquidation announcements.</li><li>As we begin the second half of the month, the liquidation count for March, including those that have been completed or are scheduled to be completed for the remainder of month, has already passed 34, involving the return of $10.9 billion to their Class A shareholders.</li><li>The prospects of more liquidations being added to the March list remain high.</li></ul>

In the ordinary course of SPAC business. In what has become the norm in SPAC land these days, we can report another flurry of liquidation announcements.As we begin the second half of the month, the liquidation count for March, including those that have been completed or are scheduled to be completed for the remainder of month, has already passed 34, involving the return of $10.9 billion to their Class A shareholders.The prospects of more liquidations being added to the March list remain high.

<ul><li>The liquidations count continues to rise. While the SPAC IPO market appears to have gone back into its slumber with no pricings to report yet in March, the main theme of the SPAC market continues to be liquidations, as it has been particularly since October 2022.</li><li>So far in March, 26 SPACs are slated to liquidate their trusts (of which half have already been liquidated), which makes it the second-highest monthly total ever, only behind the excise tax panic-stricken December 2022 rush of 89 liquidations.</li><li>Based on the current count for March, which we suspect will not be the final number, $8.5 billion will be returned to Class A shareholders.</li></ul>

The liquidations count continues to rise. While the SPAC IPO market appears to have gone back into its slumber with no pricings to report yet in March, the main theme of the SPAC market continues to be liquidations, as it has been particularly since October 2022.So far in March, 26 SPACs are slated to liquidate their trusts (of which half have already been liquidated), which makes it the second-highest monthly total ever, only behind the excise tax panic-stricken December 2022 rush of 89 liquidations.Based on the current count for March, which we suspect will not be the final number, $8.5 billion will be returned to Class A shareholders.

SPAC Talk: The Deal or Bust Cycle Set to Continue

<ul><li>SPACs are still heading for the exits in droves.</li><li>While the six IPO pricings that occurred last month would ordinarily be nothing to write home about, February 2023 happened to be the most active month for SPAC IPOs since May 2022, which was the last time a month produced six IPOs.</li><li>However, while the six IPOs last May raised a total of $915 million in gross proceeds, last month’s IPOs raised about half that amount (~$500 million), reflecting the tougher prevailing fundraising environment.</li></ul>

SPACs are still heading for the exits in droves.While the six IPO pricings that occurred last month would ordinarily be nothing to write home about, February 2023 happened to be the most active month for SPAC IPOs since May 2022, which was the last time a month produced six IPOs.However, while the six IPOs last May raised a total of $915 million in gross proceeds, last month’s IPOs raised about half that amount (~$500 million), reflecting the tougher prevailing fundraising environment.

SPAC Talk: Crushed Warrants Still Warrant Caution

<ul><li>Deal terminations return to the spotlight. The past couple of months have seen a pickup in abandoned IBC deals.</li><li>Following nine deal cancelations in December, the second-highest monthly total in 2022 behind 10 in August, the first five weeks of 2023 have seen eight deals bite the dust—four in January and four in the first week of February.</li><li>There have been 69 deal terminations, with an aggregate deal value of ~$90 billion since the start of last year.</li></ul>

Deal terminations return to the spotlight. The past couple of months have seen a pickup in abandoned IBC deals.Following nine deal cancelations in December, the second-highest monthly total in 2022 behind 10 in August, the first five weeks of 2023 have seen eight deals bite the dust—four in January and four in the first week of February.There have been 69 deal terminations, with an aggregate deal value of ~$90 billion since the start of last year.

SPAC Talk: The Peripheralization of De-SPACs

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Trump Media & Technology Group Corp. (TMTG) is a media and technology company. The Company operates a social media platform that focuses on free and open communication for citizens. TMTG through its platform helps to create content, follow other users, and engage in an open global conversation.

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SPAC Talk : Terminal Value

At the risk of sounding monotonous, while the SPAC IPO market remains pretty much comatose, there continues to be solid flow of liquidations.

Water Tower Research

SPAC Talk: The SVB Collapse and SPACs

In the ordinary course of SPAC business. In what has become the norm in SPAC land these days, we can report another flurry of liquidation...

Water Tower Research

SPAC Talk: The Deal or Bust Cycle Set to Continue

Based on the current count for March, which we suspect will not be the final number, $8.5 billion will be returned to Class A shareholders.

Water Tower Research

SPAC Talk: Crushed Warrants Still Warrant Caution

SPACs are still heading for the exits in droves.While the six IPO pricings that occurred last month would ordinarily be nothing to write home about

Water Tower Research

SPAC Talk: The Peripheralization of De-SPACs

Following nine deal cancelations in December, the second-highest monthly total in 2022 behind 10 in August, the first five weeks of 2023 have seen...

Water Tower Research

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