Wellness Meets Wall Street | SPAC Feed - Plato Data Intelligence

Welcome to The Rundown! Each week we’ll identify and break down for you SPACs that are capturing market share and making an impact.

This week in SPACs was packed with deals, updates, and buyouts. Two new deals were announced with targets in the healthcare industry. Also, a merger hits a roadblock and another gets the go-ahead from a regulator, while a cybersecurity firm gets bought for a fraction of its value a few years after its SPAC deal. Read on to find out the latest about all things SPACs.

SPAC Deals Announced

$NNAG is Taking Nava Health MD Public in $320 Million Deal

Nava Health leverages AI, proprietary data, and automation to enhance its systems, support, and medical outcomes, creating personalized treatment plans through its Customized Vitality Plans based on medical history and diagnostics.

The company’s revenue has grown from $6.7 million in 2021 to about $24.8 million in 2023, marking an 81% increase from 2022, alongside a growth in EBITDA by 173% in 2023. This was driven by a 62% rise in total appointments and a 12.5% increase in revenue per appointment.

The proceeds from the transaction will be used for working capital, growth, and other general corporate purposes.

The transaction is anticipated to close sometime in the second quarter of 2024, post which the company will list on the Nasdaq stock exchange. 99 Acquisition Corp raised $75 million through an Initial Public Offering in August 2023, targeting businesses in the real estate industry.

$ARYD is Merging With Arrhythmia Ablation Tech Maker Adagio Medical

Laguna Hills, California-based Adagio, which specializes in cryoablation devices for cardiac arrhythmias is going public through a merger with SPAC arya Sciences Acquisition Corp.

Adagio was founded in 2011 to develop minimally invasive cryoablation technologies for treating various cardiac arrhythmias by using cold gas to modify heart tissue causing irregular electrical signals.

The company’s ULTC technology, approved in Europe for atrial flutter and atrial fibrillation, has also been tested there for ventricular tachycardia, while U.S. trials for the technology in ventricular tachycardia and persistent atrial fibrillation have received FDA approval. Additionally, Adagio is testing the PFCA catheter in Europe, which combines cryoablation with pulsed-field ablation technology.

After the merger, Adagio investors will own about 10% of the new entity, with the sponsor of the blank-check company, linked to Perceptive Advisors, holding nearly 60%.

To support the duration between the signing and the closure of the merger, investors have committed to contribute $20 million in convertible debt and an additional $22 million in equity financing. The SPAC had previously raised $130 million through its IPO to focus on companies in the healthcare industry in the United States and other developed countries.

De-SPAC News

$ZFOX Being Acquired by Haveli Investments in $350 Million Deal

Cybersecurity firm ZeroFox is being acquired by tech-focused private equity firm Haveli Investments in a deal valuing the firm at $350 million, two years after the company went public through a SPAC merger.

ZeroFox shareholders will get $1.14 per share in cash once the acquisition is completed. The deal doesn’t seem to offer a “go-shop” period for seeking better offers, which may disappoint shareholders who expected more for a company once valued at about $1.4 billion.

Independent Director Todd Headley stated that after reviewing various capital options and discussions with several partners, ZeroFox decided that the deal with Haveli Investments was the optimal choice for their customers, employees, and shareholder value creation.

The deal, expected to close sometime in early 2024 without financing conditions, will see ZeroFox delist from Nasdaq and become a private entity. Founded in 2021 by Brian Sheth, Haveli received a $500 million investment from Apollo in 2022 and is actively investing in the software sector.

ZeroFox, established in 2013 by Chris Cullison, Evan Blair, Hillary Herlehy, James Foster, and Robert Francis, offers cloud-based services to help organizations counter various cybersecurity threats, including phishing, fraud, and data breaches.

SPAC Deal Updates

$PHYT’s Deal With Sio Silica in Doubt After Vivian Project Gets Blocked

The Manitoba government announced they will not grant an environmental license for the Vivian sand extraction project due to potential risks to the region’s groundwater supply.

Environment and Climate Change Minister Tracy Schmidt stated the proposal did not sufficiently address the long-term risks, including the possibility of aquifer collapse.

Calgary-based Sio Silica planned to mine ultra-pure silica sand in Springfield, Southeastern Manitoba. The company, founded in 2016, introduced this extraction proposal in April 2019.

Provincial Premier Wab Kinew highlighted the Clean Environment Commission’s (CEC) environmental concerns, particularly the project’s impact on aquifers supplying water to 100,000 Manitobans.

$DWAC Stock Surges as Trump Media Merger Gets Regulatory Clearance

DWAC plans to set a shareholder voting date for its merger, following approval of the S-4 Form.

The initial merger discussions with Trump’s media group started in October 2021 but faced delays due to legal investigations.

Shares of DWAC have surged nearly 200% this year, boosted by Trump’s emergence as the probable Republican nominee for president in November.

If the merger goes through, Trump could own up to 69% of the new company, nearly 79 million shares valued at around $3.95 billion, according to a DWAC filing.