The SPAC craze continues unabated, with many SPACs being filed with the SEC on an hourly basis.
SoftBank does not want to leave the Japanese telecom group, which is also running the giant Vision Fund and its successors. Yesterday, it recorded back-to-back SPAC registration statements for two new blank-check companies.
SVF Investment Corp 2 $ 200 million and SVF Investment Corp 3 Is a $ 350 million vehicle. Both SPACs have an allocation option of around 15%, meaning that their final sizes will end up at $ 230 million and $ 400 million, respectively, assuming the underwriters take their option (a slightly higher allocation to number three Is, if you’re checking my math).
An interesting component of both SPACs is that they have one known as Forward purchase agreement 2. That agreement tied to SoftBank’s Vision Fund allows other Vision Funds to buy shares in these SPACs when they start their business combinations with their target startups, essentially giving them the right to buy into the merger. The Vision Fund has a $ 100 million agreement with SVF 2, and a $ 150 million agreement with SVF 3.
As with all SPAACs, a registration statement is filed only with the intention of raising money, although these days, a lot of filings are consumed later.
As the numbering indicates, SoftBank First was SPAC That it filed in December and Officially closed on January 7 of this year. That vehicle targeted a total of $ 604 million in fundraising, including an over-allotment option for underwriters. It also included a $ 250 million forward purchase agreement with the second Vision Fund, similar to these latest two vehicles.
What are these SPACs looking for? Well, according to Burada, “We want to identify, acquire and manage a business in a technology-enabled field where our management team has different experiences and insights. Relevant areas may include, but Mobile communication technology, artificial intelligence, robotics, cloud technology, software broadly, computational biology and other data-driven business models, semiconductors and other hardware, transportation technology, consumer Internet and financial technology are not limited. ”
This seems to cover a lot, but just in case, sawdust notes that “however, we may consume transactions with a business in a different or related industry.” So basically anything.
SPACs may potentially close, but there is no timeline yet, but the market average given period is 4-8 weeks.